Problem regarding the time value of money

Reference no: EM1329264

Problem 1

Smolinski company is considering an investment which will return a lump sum of $5000,000 five years from now. What amount should simolinski company pay for this investment to earn a 15% return.

Problem 2

Kilarny company is considering investing in an annuity cintract that will return $20,000.00 annually at the end of each year for 15 years. What amount should Kilarny company pay for this investment if it earns a 6% return

Reference no: EM1329264

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Problem regarding the time value of money : Smolinski company is considering an investment which will return a lump sum of $5000,000 five years from now. What amount should simolinski company pay for this investment to earn a 15% return.

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