ent values

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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2. Find All four present values
CIAL MGMT 7120
Question 2 - HW5- Connect
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An investment offers $8,900 per year for 14 years, with the first payment occurring one
year from now. Assume the required return is 9 percent.
a. What is the value of the investment today? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
b. What would the value be if the payments occurred for 39 years? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g.., 32.16.)
c. Wha
would the value be if the payments occurred for 74 years? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d. What would the value be if the payments occurred forever? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a.
Present value
b.
Present value
C.
Present value
d.
Present value
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Transcribed Image Text:CIAL MGMT 7120 Question 2 - HW5- Connect Channel content - Your A ezto.mheducation.com/ext/map/index.html?_con%3con&external_browser3D08&laur Saved An investment offers $8,900 per year for 14 years, with the first payment occurring one year from now. Assume the required return is 9 percent. a. What is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What would the value be if the payments occurred for 39 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.., 32.16.) c. Wha would the value be if the payments occurred for 74 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What would the value be if the payments occurred forever? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value b. Present value C. Present value d. Present value < Prev 2 of 9 pe here to search
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