1. Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only 6 annual payments of 2,300, this beautiful 1998 Honda Civic can be yours." If you can borrow money at 8%, what is the price of this car? Assume the payment is made at the end of each year. If you can borrow money at 8%, what is the price of this car?
?$ _______?(Round to the nearest? cent.)
2. Upstate University currently has a 6,500?-car parking capacity for? faculty, staff, and students. This? year, the university issued 4,497 parking passes. The number of parking passes issued has been growing at a rate of 8?% per year. How long will it be before the university will need to add parking? spaces?
How long will it be before the university will need to add parking? spaces?
__years ?(Round to two decimal? places.)
3. Find the operating cash flow for the year for Harper? Brothers, Inc. if it had sales revenue of $313,500,000?, cost of goods sold of $146,700,000?, sales and administrative costs of $39,800,000?, depreciation expense of $ $60,200,000?, and a tax rate of 40%.
The operating cash flow is ?$
_______ ?(Round to the nearest? dollar.)
4. Different cash flow. Given the following cash? inflow, what is the present value of this cash flow at 5%?, 10%?, and 25?% discount? rates?
Year? 1: $3000
Year? 2: $5000
Years 3 through? 7: $0
Year? 8: $25000
What is the present value of this cash flow at 5?% discount? rate?
?$__ (Round to the nearest? cent.)
What is the present value of this cash flow at 10?% discount? rate?
?$___ ?(Round to the nearest? cent.)
What is the present value of this cash flow at 25?% discount? rate?
?$____? (Round to the nearest? cent.)