Reading 5: The Time Value of Money- LOS d, (Part 4)～ Q1-3 discount, payments, highest, present, annual

mayanfang1

Q1. Assuming a discount rate of 10%, which stream of annual payments has the highest present value?

A)      $20       –$5        $20        $110

B)      $110      $20       $10         $5

C)   –$100    –$100    –$100    $500

Q2. Suppose you are going to deposit $1,000 at the start of this year, $1,500 at the start of next year, and $2,000 at the start of the following year in an savings account. How much money will you have at the end of three years if the rate of interest is 10% each year?

A)   $5,346.00.

B)   $4,000.00.

C)   $5,750.00.

Q3. A firm is evaluating an investment that promises to generate the following annual cash flows:

End of Year                  Cash Flows

1                                     $5,000

2                                     $5,000

3                                     $5,000

4                                     $5,000

5                                     $5,000

6                                     -0-

7                                     -0-

8                                     $2,000

9                                     $2,000

Given BBC uses an 8% discount rate, this investment should be valued at:

A) $22,043.

B) $19,963.

C) $23,529.

shing1314

thanks for sharing

祈愿修神

11

seraphiris0116

thanks

echopapa

THX

sandscap

thx

scofield1985

d

gecunshi

YES I have the answers.

irving

good posting

KiftLei

想知道答案呀~哈哈謝啦