Question 1
What is the net present value of the following cash flows? Assume an interest rate of 14%
Year CF
0 -$14,998
1 $6,113
2 $6,812
3 $9,466
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answers box.
Question 2
If you receive $1,205 at the end of each year for the first three years and $4,414 at the end of each year for the next two years. What is the future value of this cash flow stream? Assume interest rate is 6%.
Question 3
How many years will it take to triple your money at 14% compounded monthly?
Question 4
If you receive $494 at the end of each year for the first two years and $705 at the end of each year for the next two years.
Assume interest rate is 15%. What is the value at the end of the 4th year? That is. solve for FV at the end of the 4th year.
Question 5
ABC is reviewing a project that will cost $1,734.The project will produce cash flows $760 at the end of each year for the first two years and $698 at the end of each year for the next three years. What is the profitability index? Assume interest rate is 14%
Question 6
You are given the following information about ABC Company:
Interest expenses = $6,048
Times Interest Earned Ratio = 2.8 times
Tax Rate = 25.5%
What is the net income?
Question7
ABC Company has $439,077 of operating income after all costs but before $59,298 of interest income, $51,157 of dividend income, and taxes. What is the tax expense?
Question 8
Debbie wants to have $23,330 in her bank account 4 years from now. The account will pay 0.5% interest per month. How much money does she need to put in her bank account at the end of each month to achieve this goal?