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FIN 571 Week 4 Quiz_100%.docx

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 Present value:
 !
"
 PV of mulple cash ows:#$%&'
()(*')'
'& !
"
+ PV of mulple cash ows:,-
+(.*')''
-/'0 !"
4. PV of multiple cash flows: Pam Gregg is expecting cash flows of $50,000, $75,000,
$125,000, and $250,000 from an inheritance over the next four years. If she can earn 11
percent on any investment that she makes, what is the present value of her inheritance?
(Round to the nearest dollar.)
 Present value of an annuity:12
0'+(')31'
''
 !"
 Future value of an annuity:245+'
))/&
') !"
( Bond price: 627&'(
'&.,'
& !"
* PV of dividends: 251)8'),9
)(')'/'
)37':'
. PV of dividends:;1'
$<))''=
+++)>
7'*1':'
''

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?1@(/$-A5
 Present value:
 !
"
**
 PV of mulple cash ows:#$%&'
()(*')'
'& !
"
--
+ PV of mulple cash ows:,-
+(.*')''
-/'0 !"
+
4. PV of multiple cash flows: Pam Gregg is expecting cash flows of $50,000, $75,000,
$125,000, and $250,000 from an inheritance over the next four years. If she can earn 11
percent on any investment that she makes, what is the present value of her inheritance?
(Round to the nearest dollar.)
+.**
 Present value of an annuity:12
0'+(')31'
''
 !"
-**
 Future value of an annuity:245+'
))/&
') !"

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1. Present value: Tommie Harris is considering an investment that pays 6.5 percent annually. How much must he invest today such that he will have $25,000 in seven years? (Round to the nearest dollar.) 2. PV of multiple cash flows: Jack Stuart has loaned money to his brother at an interest rate of 5.75 percent. He expects to receive $625, $650, $700, and $800 at the end of the next four years as complete repayment of the loan with interest. How much did he loan out to his brother? (Round to the nearest dollar.) 3. PV of multiple cash flows: Hassan Ali has made an investment that will pay him $11,455, $16,376, and $19,812 at the end of the next three years. His investment was to fetch him a return of 14 percent. What is the present value of these cash flows? (Round to the nearest dollar.) 4. PV of multiple cash flows: Pam Gregg is expecting cash flows of $50,000, $75,000, $125,000, and $25 ...
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