Block 15e
Pr 9-1
Problem 9-1 Future value [LO2]
You invest $3,000 for three years at 12 percent.
a. What is the value of your investment after one year? Multiply $3,000 1.12.
b. What is the value of your investment after two years? Multiply your answer to
Block 15e
Pr 8-1
Problem 8-1 Cash discount [LO1]
Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not round intermediate
calculations. Input your final answers as a percent rounded to 2 decimal places.)
All input values
Block 15e
Pr 7-1
Problem 7-1 Cost-benefit analysis of cash management [LO2]
City Farm Insurance has collection centers across the country to speed up collections. The company also makes its
disbursements from remote disbursement centers so the firm's chec
Block 15e
Pr 8-1
Problem 8-1 Cash discount [LO1]
Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not round intermediate
calculations. Input your final answers as a percent rounded to 2 decimal places.)
All input values
Block 15e
Pr 10-2
Problem 10-2 Bond value [LO3]
Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Use
Appendix B and Appendix D for an approximate answer but calculate your final answer using the
Block 15e
Pr 11-3
Problem 11-3 Effect of discount rate [LO3]
A brilliant young scientist is killed in a plane crash. It is anticipated that he could have earned
$240,000 a year for the next 50 years. The attorney for the plaintiffs estate argues that the
Block 15e
Pr 12-1
Problem 12-1 Cash flow [LO2]
Assume a corporation has earnings before depreciation and taxes of $90,000, depreciation of $40,000, and that it is in
a 30 percent tax bracket. Compute its cash flow using the following format. (Input all an
Spartan Technology Company
CH:12-30
Total initial investment compared to present value of cash flows.
Initial investment:
Land and equipmentWorking CapitalInitial investment-
$120,000
$55,000
$175,000
When figuring out the present value of cash flows, we
CASH BUDGET
HOMEWORK HANDOUT PROBLEM
Modern Company has developed the following estimates for the month of July:
Cash Sales
Credit Sales
Depreciation Expense
Wages
Merchandise Purchases
Various Expenses
$20,000
10,000
3,000
4,000
6,000
5,000
Modern Compan