Calculate the future value of 100000 ten years from now

Reference no: EM13483814 , Length: 25

When the Genesis and Sensible Essential teams held their weekly meeting, the time value of money and its applicability yielded an extremely stimulating discussion. However, most of the team members from Genesis were very perplexed. Sensible Essentials decided the most expedient way to demonstrate how interest rates as well as time impact the value of money was to use examples. You have been asked to prepare a report analyzing your findings of the three example calculations listed below.
In this assignment, you will do the following:

Calculate the future value of $100,000 ten years from now based on the following annual interest rates:

2%
5%
8%
10%

Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows:

Year 1 = $100,000
Year 2 = $150,000
Year 3 = $200,000
Year 4 = $200,000
Year 5 = $150,000
Years 6-10 = $100,000

Calculate the present value of the cash flow stream in problem 2 with the following interest rates:

Year 1 = 8%
Year 2 = 6%
Year 3 = 10%
Year 4 = 4%
Year 5 = 6%
Years 6-10 = 4

Perform your calculations in an Excel spreadsheet. Copy the calculations in a Word document. In addition, write a 2 page executive summary in Word format. Your summary should reflect a proper analysis of your findings, including a comparison and contrast of data. Apply APA standards to citation of sources.

Reference no: EM13483814

Questions Cloud

Collison and ryder company campr has been experiencing : collison and ryder company campr has been experiencing declining market conditions for its sportswear division.

On a single graph plot the 1-year short-term 5-year and : on a single graph plot the 1-year short-term 5-year and 10-year intermediate-term and 20-year long-term yields of the

Which of the following is relevant to kitchenwarecoms : which of the following is relevant to kitchenware.coms decision to accept a special order at a lower sale price from

During your year-end review of the accounts related to : in 2011 space technology company modified its model z2 satellite to incorporate a new communication device. the company

Calculate the future value of 100000 ten years from now : when the genesis and sensible essential teams held their weekly meeting the time value of money and its applicability

Prepare the adusting entry to record bad debt expense for : at each calender year end maize supply co uses the percent of accounts receivable method to estimate bad debts.on 31

List and discuss the three lessons of finance what are the : please wirte the difinition of each answer and use some examples pictures and math to explain each questions1. list and

Calculating profitability index what is the profitability : calculating profitability index what is the profitability index for the following set of cash flows if the relevant

The increase in certification programs and continuing : laserwords inc. is a book distributor that had been operating in its original facility since 1987. the increase in

User Account

All Pages