A1 
present value 
7500 
7500 

present value of alternative 2 = Using present value function in MS excel 
pv(rate,nper,pmt,fv,type) rate =10% nper = 9 pmt = 2200 fv = 0 type =0 
PV(10%,9,2200,0,0) 
($12,669.85) 

present value of alternative 3 = Using present value function in MS excel 
pv(rate,nper,pmt,fv,type) rate =10% nper = 9 pmt = 0 fv = 31000 type =0 
PV(10%,9,0,31000,0) 
($13,147.03) 

A2 
alternative 3  
31000 received at the end of year 9 

b2 
present value 
7500 
7500 

present value of alternative 2 = Using present value function in MS excel 
pv(rate,nper,pmt,fv,type) rate =11% nper = 9 pmt = 2200 fv = 0 type =0 
PV(11%,9,2200,0,0) 
($12,181.50) 

present value of alternative 3 = Using present value function in MS excel 
pv(rate,nper,pmt,fv,type) rate =10% nper = 9 pmt = 0 fv = 31000 type =0 
PV(11%,9,0,31000,0) 
($12,118.67) 

b2 
alternative 2  
22000 received each year for 9 years 
Your grandfather has offered you a choice of one of the three following alternatives: $7,500 now:...
Your grandfather has offered you a choice of one of the three following alternatives: $10,500 now $5,000 a year for nine years or $61,000 at the end of nine years. Use Appendix Band Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. 01. Assuming you could eam 7 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Present...
9 Problems Your grandfather has offered you a choice of one of the three following alternatives. $13,500 now $6,500 a year for nine years, or 591.000 at the end of nine years. Use Appendix Band Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods 1. Assuming you could earn 9 percent annually, compute the present value of each alternative (Do not round Intermediate calculations. Round your final answers to 2 decimal...
Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer uYour grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate...
Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.a1. Assuming you could earn 6 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)1250 > Present value = _________ a2. If you...
1. (15 points) Your grandfather has offered you a choice of one of the theefollowing alternatives: $4500 now; $1000 at the beginning of each period for six years, or $8000 at the end of six years. Assuming you could earn 12% annually. Required: (1) Calculate the Present Value of each choice (2) State which alternative should you choose?
Your rich godfather has offered you a choice of one of the three following alternatives: $10,000 now; $2,000 a year for eight years; or $24,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative should you choose? If you could earn 12 percent annually, would you still choose the same alternative?
Your father offers you a choice of $125,000 in 11 years or $45,500 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a1. If money is discounted at 8 percent, what is the present value of the $125,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) a2. Which offer should you choose? $45,500 today $125,000 in 11 years b1. Now assume the offer is...
Appendix D tor an approxdemate answer, but places.) round intermediate calculations Round your tinal answers to 2 decimal $31,000 received at end of nine years O s2.200 tinal answers to 2 decimal places) O 531000 received at end of nine years $7,500 received new
Mrs. Crawford will receive $7,500 a year for the next 18 years from her trust. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. If a 11 percent interest rate is applied, what is the current value of the future payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value
How much would you have to Invest today to receive the following? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. $7,800 each year for 20 years at 6 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Present value 553,000 each year for 25 years at 12 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.)...