Financial Management Essay
Autor: napost01 • June 2, 2015 • Essay • 539 Words (3 Pages) • 1,398 Views
CHAPTER 2
EX.4
Year 1 | Year 2 | Year3 | |
Cash flow | $432 | $137 | $797 |
We use the following formula: [pic 1]
= 375.65[pic 2]
= 103.59[pic 3]
= 524.04[pic 4]
PV=PV1+PV2+PV3=375.65+10359+524.04 => PV=1003.28
EX.19
- PV=100000
- => PV=102136.83[pic 5]
- => PV=95000[pic 6]
- => PV=107354,24[pic 7]
- PV= => PV=92857.14 [pic 8][pic 9]
Answer: CHOOSE D BECAUSE IT HAS THE HIGHEST PV
EX.21
A = [ ]*F [pic 10]
A= ( )*20000 => A=3275.95[pic 11]
[pic 12]
[pic 13]
[pic 14][pic 15][pic 16][pic 17][pic 18]
[pic 19][pic 20]
EX.28
[pic 21]
k: compounding intervals
t: number of years
A => r =12% (Annual interest)
B => r =11.7%, r/2=5.85% = 0.0585 (Semi-annual interest)
C => r =11.5% (Continuously)
AFTER 1 YEAR:
=> FVA = $1.120
[pic 22]
=> FVB = $1.120
[pic 23]
=> FVC = $1.122[pic 24]
AFTER 5 YEAR:
=> FVA = $1.762[pic 25]
=> FVB = $1.766[pic 26]
=> FVC= $1.777[pic 27]
AFTER 20 YEAR:
=> FVA = $9.646[pic 28]
=> FVB = $9.719[pic 29]
=> FVC = $9.974[pic 30]
Answer: THE BEST INVESTMENT WOULD BE C.
CHAPTER 3
EX.15
[pic 31]
=> P = 55.84[pic 32]
Coupon rate (C) = 100*5% = 5
[pic 33]
t: frequency of coupon payments
n: number of years
=> [pic 34][pic 35]
EX.16
Coupon rate =5.5%, r/2= 2.75% (every six months)
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