Question 1your finance text book sold 50000 prints in its

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Question 1

Your finance text book sold 50,000 prints in its first year. The publishing company expects the sales to grow at a rate of 15.0 % for the next three years, and by 6.0 % in the fourth year. Evaluate the total number of prints that the publisher expects to sell in year 3 and 4.

Number of prints sold after 3 years        

Number of prints sold in the fourth year              

Question 2

Evaluate the present value of $4,300 under each of the subsequent rates and periods.

a. 8.9 % compounded monthly for five years.

Present value    $

b. 6.6 % 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    $

Question 3

Trigen Corp. management may invest cash flows of $529,481, $1,251,352, $534,090, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the suitable interest rate is 5.18 percent, evaluate the future value of these investment cash flows six years from today?

Future value      $

Question 4

Prepare a piece of software that does a better job of allowing computers to network than any other program designed for this reason. A large networking company wants to integrate your software into their systems and is offering to pay you $475,000 today, plus $475,000 at the end of each of the subsequent six years for permission to do this. If the suitable interest rate is 7%, determine the present value of the cash flow stream that the company is providing you?

Present value    $

Question 5

Trevor Price bought 10-year bonds issued by Harvest Foods 5 years ago for $997.30. The bonds make semiannual coupon payments at a rate of 8.4 %. If the existing price of the bonds is $1,072.37, evaluate the yield that Trevor would earn by selling the bonds today?

Effective annual yield     %

Reference no: EM13349754

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