Calculate the net present value

Assignment Help Accounting Basics
Reference no: EM132036304

Practical Analysis Questions -

Q1. Calculate the present value given the following information: future value = $1,000; number of periods = 3; interest rate of 5%.

Q2. Calculate the present value given the following information: future value = $800; number of periods = 5; interest rate of 10%.

Q3. Calculate the future value given the following information; present value $500; number of periods = 4; interest rate of 5%.

Q4. Calculate the present value given the following information; future value = $2,500; number of periods = 2; interest rate of 15%.

Q5. Calculate the present value of an annuity given the following information: number of periods = 3, interest rate of 6%, and a payment of $200.

Q6. Calculate the net present value with a required return of 10%, an initial investment of $30,000, and 10 years of payments of $6,000 each.

Q7. Calculate the net present value with a required return of 8%, an initial investment of $45,000, and cash flows of $12,000, $20,000, $10,000, and $6,000 for years 1 through 4 respectively.

Q8. Given the following information, a required return of 8%, an initial investment of $45,000 and cash flows of $12,000, $20,000, $10,000 and $6,000 for years 1 through 4 respectively, should the investment be done?

Q9. Calculate the net present value with a required return of 5%, an initial investment of $45,000, and cash flows of $9,000, $8,000, $15,000, and $20,000 for years 1 through 4 respectively.

Q10. Given the following information, with a required return of 5%, an initial investment of $45,000, and cash flows of $9,000, $8,000, $15,000, and $20,000 for years 1 through 4 respectively. Is the investment considered to be a good investment?

Q11. Calculate break-even per unit given the following information: sales per unit of $25, variable costs of $13, fixed costs of $5,000. Remember, you cannot have partial units, so you will need to round up if the answer is decimal.

Q12. Calculate break-even in dollars given the following information: sales per unit of $40, variable costs of $15, fixed costs of $15,000, and a desired profit of $20,000. Remember, you cannot have partial units, so you will need to round up if the answer is a decimal.

Q13. Calculate the degree of operating leverage given the following information; sales of $25,000; variable costs of $13,000; and operating income of $7,000 for year one, and sales of $40,000; variable cost $15,000; and operating income of $16,000 for year 2. Your answer should be rounded to two decimal places. (For this problem, specifically calculate the difference between the sales and the operating income for each of the given years. This will allow you to calculate the degree of operating leverage.)

Reference no: EM132036304

Questions Cloud

Discuss the advantages of issuing preferred stock vs bonds : The equity market is not doing well now. Discuss the advantages and disadvantages of issuing preferred stock vs bonds
Observation by telling us about something that most people : Observation by telling us about something that most people (including yourself) are often mistaken about, even though they think they know it as well as
Cosmological argument for the existence of god : You are to present cosmological argument for the existence of God, and then you are to analyze the Hindu and Buddhist world view that deny the existence of God
Aesthetic life in either or a fragment of life ii : What are the key points Kierkegaard makes regarding Aesthetic Life in Either or a Fragment of Life II?
Calculate the net present value : Calculate the net present value with a required return of 10%, an initial investment of $30,000, and 10 years of payments of $6,000 each
What are the three steps to refining a solution : What are the three steps to refining a solution? Provide an example of each.
Current moral issue in the united states : There are many moral issues we will cover in the eight weeks, but let us start with what you think is a current moral issue in the United States
Right to lie in order to save a life : According to Immanuel Kant, is it ever right to lie in order to save a life? Be sure your answer makes use of the categorical
Determine the estimated units of sales : Determine the estimated units of sales of the overall (total) product necessary to reach the break-even point for the current year

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd