Be sure to use the following format for your answers:

TVM Table (X%, Xn)
Pmt (factor)
Answer

1. You invest $5,000 at 6% compounded annually for 10 years. How much will you have at the end of year 10?

FV Table (6%, 10n)
$5,000 (1.791)
$8,955

2. You need $200,000 10 years from now and know of an investment that pays a 10% return. How much do you need to invest today to achieve your goal?

PV Table (10%, 10n)
$200,000 (0.386)
$77,200

3. You are required to leave a $1,000 security deposit for 8 years. The deposit as well as interest compounded at 5% per year. How much will you receive at the end of 8 years?

FV Table (5%, 8n)
$1,000 (1.478)
$1,478

4. How much would you have to invest to receive $20,000 per year for 5 years if you can expect a 9% return on the investment?

FVA Table (9%, 5n)
$20,000 (5.985)
$119,700

5. You make annual deposits of $8,000 for 10 years into an investment that pays 6% compounded annually. What amount will be in the account at the end of 10 years?

PVA Table (6%, 10n)
$8,000 (7.360)
$58,880

6. In 6 years, how much would $7,000 grow to if the investment pays at a 5% rate?

FV Table (5%, 6n)
$7,000 (1.340)
$9.380

7. How much would you have to deposit today to receive $10,000 in the future, assuming annual discounting, for the following? a. 6% for 5 years
PV Table (6%, 5n)
$10,000 (0.747)
$7,470

b. 10% for 5 years
PV Table (10%, 5n)
$10,000 (0.621)
$6,210

8. What would $10,000 invested today be worth in the following time periods, assuming annual compounding: a. 7% for 4 years
FV Table (7%, 4n)
$10,000 (1.311)
$13,110

c. 5% for 4 years
FV Table (5%, 4n)
$10,000 (1.216)
$12,160

9. You estimate a college education will cost $100,000 in 15 years when your child will be ready for college. How much do you need to deposit today to pay for the...

...FIN370Week3 Problems 4–6 through 5–6
www.paperscholar.com
DIRECT LINK TO THIS STUDY GUIDE:
http://www.paperscholar.com/fin-370-week-3-problems-4-6-through-5-6/
Instantly Download! Get Better Grades in Less Time!
100% Satisfaction Guarantee
DESCRIPTION FOR THIS STUDY GUIDE:
4-6. A cash budget is usually thought of as a means of planning for future financing needs. Why would a cash budget also be important for a firm that had excess cash on hand?
5-1A. (Compound interest) To what amount will the following investments accumulate?
$5,000 invested for 10 years at 10 percent compounded annually
$8,000 invested for 7 years at 8 percent compounded annually
$775 invested for 12 years at 12 percent compounded annually
$21,000 invested for 5 years at 5 percent compounded annually
5-4A. (Present value) What is the present value of the following future amounts?
$800 to be received 10 years from now discounted back to the present at 10 percent
$300 to be received 5 years from now discounted back to the present at 5 percent
$1,000 to be received 8 years from now discounted back to the present at 3 percent
$1,000 to be received 8 years from now discounted back to the present at 20 percent
5-5A. (Compound annuity) What is the accumulated sum of each of the following streams of payments?
$500 a year for 10 years compounded annually at 5...

...
Week 5 Individual AssignmentFIN370
April 7, 2014
Problem: Firm A has $10,000 in assets entirely financed with equity. Firm B also has $10,000 in assets, but these assets are financed by $5,000 in debt (with a 10 percent rate of interest) and $5,000 in equity. Both firms sell 10,000 units of output at $2.50 per unit. The variable costs of production are $1, and fixed production costs are $12,000. (To ease the calculation, assume no income tax.)
a) What is the operating income (EBIT) for both firms?
Company A
Company B
Sales
25,000.00
25,000.00
Variable Expenses
10,000.00
10,000.00
Fixed Costs
12,000.00
12,000.00
EBIT
3,000.00
3,000.00
b) What are the earnings after interest?
Company A
Company B
Sales
25,000.00
25,000.00
Variable Expenses
10,000.00
10,000.00
Fixed Costs
12,000.00
12,000.00
EBIT
3,000.00
3,000.00
Interest Expense
0.00
500.00
Taxes
0.00
0.00
Net Income
3,000.00
2,500.00
c) If sales increase by 10 percent to 11,000 units, by what percentage will each firm’s earnings after interest increase? To answer the question, determine the earnings after taxes and compute the percentage increase in these earnings from the answers you derived in part b.
Company A
Company B
Sales
27,500.00
27,500.00
Variable Expenses
11,000.00
11,000.00
Fixed Costs
12,000.00
12,000.00
EBIT
4,500.00
4,500.00
Interest Expense
0.00
500.00...

...Question 1
Your finance text book sold 53,250 copies in its first year. The publishing company expects the sales to grow at a rate of 20 percent for the next three years, and by 10 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in year 3 and 4. (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answers to the nearest whole number.)
Number of copies sold after 3 years
Number of copies sold in the fourth year
Link to Text
Question 2
Find the present value of $3,500 under each of the following rates and periods.
(If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)
a. 8.9 percent compounded monthly for five years.
Present value
$
b. 6.6 percent compounded quarterly for eight years.
Present value
$
c. 4.3 percent compounded daily for four years.
Present value
$
d. 5.7 percent compounded continuously for three years.
Present value
$
2949.88
Question 3
Trigen Corp. management will invest cash flows of $331,000, $616,450, $212,775, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the appropriate interest rate is 6.75 percent, what is the future value of these investment cash flows six years from today? (Round answer to 2 decimal places, e.g. 15.25.)
Future...

...needed to get the product to market including those associated with production, marketing, distribution and company administration (e.g., office expense). These costs can be divided into two main categories: fixed costs and variable costs”. Fixed costs are costs that are spent and cannot be recovered (rent, credit interest, maintenance costs, security and administrative expenses, often salary). The major factors affecting fixed costs are (1) Changes in business organization, (2) Changes in technology applied, (3) Sale of manufacturing equipment and (3) Decisions to undertake advertising activities, etc. Variable costs are costs that vary with production. Factors affecting variable costs, including productivity and others that change the supply of and demand for labor (internal factors), (1) Involve costs of items that are either components of the product (parts/packaging), (2) Directly associated with creating the product (electricity to run an assembly line), (3) Coupons and (4) Variable costs, especially for tangible products tend to decline as more units are produced. This is due to the producing company’s ability to purchase product components for lower prices since component suppliers often provide discounted pricing for large quantity purchases (). Total cost the sum of all costs of inputs used by a firm in production TC = FC + VC
Apple is one of the world’s most admired brands. Every year, as rumors about Apple’s...

...benefits from the project and, as such, are the increased value to the firm from accepting the project.
2. Although depreciation is not a cash flow item, it does affect the level of the differential cash flows over the project's life because of its effect on taxes. Depreciation is an expense item and, the more depreciation incurred, the larger are expenses. Thus, accounting profits become lower and in turn, so do taxes which are a cash flow item.
3. When evaluating a capital budgeting proposal, sunk costs are ignored. We are interested in only the incremental after-tax cash flows, or free cash flows, to the company as a whole. Regardless of the decision made on the investment at hand, the sunk costs will have already occurred, which means these are not incremental cash flows. Hence, they are irrelevant.
Solution to Integrative Problem, parts 4, 5, & 6.
Section I. Calculate the change in EBIT, Taxes, and Depreciation (this become an input in the calculation of Operating Cash Flow in Section II).
Year | 0 | 1 | 2 | 3 | 4 | 5 |
Units Sold | | 70,000 | 120,000 | 140,000 | 80,000 | 60,000 |
Sale Price | | $300 | $300 | $300 | $300 | $260 |
| | | | | | |
Sales Revenue | | $21,000,000 | $36,000,000 | $42,000,000 | $24,000,000 | $15,600,000 |
Less: Variable Costs | | 12,600,000 | 21,600,000 | 25,200,000 | 14,400,000 | 10,800,000 |
Less: Fixed Costs | |...

...FIN370Week 1 – 5 ALL WRITTEN ASSIGNMENTS
www.paperscholar.com
DIRECT LINK TO THIS STUDY GUIDE:
http://www.paperscholar.com/fin370-week-1-5-all-written-assignments-100-correct-a/
Instantly Download! Get Better Grades in Less Time!
100% Satisfaction Guarantee
DESCRIPTION FOR THIS STUDY GUIDE:
THIS COMPREHENSIVE 5 WEEK TUTORIAL INCLUDES:
WEEK 1:
Create a list of definitions for the following terms and identify their roles in finance.
Finance
Efficient market
Primary market
Secondary market
Risk
Security
Stock
Bond
Capital
Debt
Yield
Rate of return
Return on investment
Cash flow
THIS TUTORIAL IS 846 WORDS IN CORRECT APA FORMAT – GRADED 5/5 – A+++ WORK
WEEK 2:
Select an organization from the following list:
Pepsi-Cola
Wal-Mart Stores, Inc.
Lowe’s
Starbucks
Barnes & Noble
Amazon.com
HP
Dell
Disney
Microsoft
Obtain faculty approval of your selection prior to beginning the assignment.
Obtain a copy of the organization’s annual report and SEC filings for the past 2 years.
Write a 1,400- to 1,750-word paper in which you analyze the data in the annual reports and SEC filings. Address the following:
Assess the role of ethics and compliance in your organization’s financial environment.
Describe procedures your organization has in place to ensure ethical behavior.
Explain how financial markets...

...FIN/370 Final Exam Study Guide – ACCNERD.com
How to Use this Study Guide – READ ME FIRST
The following study guide will NOT have the same exact questions on your test! However, this study guide WILL help you ace the FIN370 Final Exam. The guide covers the same topics and will help you gain a deeper understanding of the concepts. Best of all, you are still guaranteed a score of 90% or higher or your money back!
Tip #1: Use CRTL+F to search a related keyword to quickly find the topic you need.
Tip #2: If a topic is missing, please email us at support@accnerd.com. We can usually provide immediate custom support during normal business hours.
1) What is the primary goal of a for-profit firm?
Maximize shareholder wealth
Explanation: Every for-profit is held accountable to shareholders above all else.
2) What would be considered a primary market transaction?
The issue of new common stock by a public company
Explanation: When a company issues NEW stock it is considered the primary market, while all subsequent transactions are considered the secondary market.
3) Who represents the principles of an organization based on the agency problem theory?
Shareholders
Explanation: Also known as the Principle-Agent problem, this concept identifies shareholders as the principles, and managers as the agents.
4) A basic financial management principle would be considered?
Risk/return tradeoff...

...FIN/419 - Week3 Individual Assignment form the readings
P4–23 (LG-2/LG-3) Funding your retirement you plan to retire in exactly 20 years. Your goal is to create a fund that will allow you to receive $20,000 at the end of each year for the 30 years between retirement and death (a psychic told you would die exactly 30 years after you retire). You know that you will be able to earn 11% per year during the 30-year retirement period.
a. How large a fund will you need when you retire in 20 years to provide the 30-year, $20,000 retirement annuity?
n= 30 r= 11.00% PVIFA= 30 periods, 11% Rate = 8.693793
Annuity= 20,000 / Present value = $173,876 = 20000 X 8.693793
Answer= $ 173,876 Retirement money required
b. How much will you need today as a single amount to provide the fund calculated in part A if you earn only 9% per year during the 20 years preceding retirement?
n= 20 r= 9.00% FVIF= 20 periods, 9% = 5.604411
Amount required in 20 years = $ 173,876
Amount to be invested = $ 31,025
c. What effect would an increase in the rate you can earn both during and prior to retirement have on the values found in parts A and B? Explain.
If the interest in Part A went from .11 to .20 then we would need only $99,578.73.
In Part B it was .09 went to .15 including the interest from Part A was at .11 you would need $10,623.86
This is because higher compounding interest rates will provide more money,...