Essay About 2017P3-4 And 1Future Value152000

Fin 3600 Eol 71 – Module 2 Homework
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Khadajia ChoyceFIN3600 EOL71Module 2 HomeworkIndiana TechApril 13, 2017P3-4 a-bPV = FV / (1 + r) ^ n A1. PV = 1,000,000 / (1 + 0.6) ^ 10       PV = 1,000,000 / 1.79085       PV = 558,394.05A2. PV = 1,000,000 / (1 + 0.9) ^ 10       PV = 1,000,000 / 2.36736       PV = 422,411.46A3. PV = 1,000,000 / (1 + 0.12) ^ 10       PV = 1,000,000 / 3.10585       PV = 321,973.05B. 6% = 417,264.75     9% = 274,538.22    12% = 182,696.12P3-12            FV₅ = PV x (1.07)⁵            FV₅ = 24,000 x (1.403)FV₅ = 33,661Beginning of YrNo. of years (t)FV=CF₁x(1+.07)^1Future value152000 x 1.4032805.10244000 x 1.3115243.18336000 x 1.2257350.26428000 x 1.14499159.205110000 x 1.01010700.00Total =35257.74 Gina should choose the mixed stream alternative.P3-17YearExpensePVIF₈%, nPresent value150000.9264630240000.8573428360000.7944764410,0000.7357350530000.6812043Total =22,215A deposit of $22,215 would be needed to cover expenses.P4-17 a-cBond A market price is $1220.80Bond B market price is $659.92Bond C market price is $957.88