of the first 2 years and by $ 20,000 in year 3 . Present values of an annuity of $ 1 at 14 % are : Using a 14 % cost of capital , what is the present value of these future savings ?
23 . Which one of the following kinds of tables most likely would be used to determine the current worth of five equal amounts to be received at the end of each of the next five years .
24 . Which of the following changes would result in the highest present value ?
25 . On August 31 , 2004 , Ashe Corp . adopted a plan to accumulate $ 1,000,000 by September 1 , 2008 . Ashe plans to make four equal annual deposits to a fund that will earn interest at 10 % compounded annually . Ashe will make the first deposit on September 1 , 2004 . Future value and future amount factors are as follows : Which one of the following would be the amount of annual deposits Ashe should make ( rounded )?
26 . Which one of the following sets of interest ( or discount ) rates will give the greater present value of $ 1.00 and greater future value of $ 1.00 ?
27 . On November 1 , 2005 , a company purchased a new machine that it does not have to pay for until November 1 , 2007 . The total payment on November 1 , 2007 will include both principal and interest . Assuming interest at a 10 % rate , the cost of the machine would be the total payment multiplied by what time value of money concept ?
28 . A corporation obtains a loan of $ 200,000 at an annual rate of 12 %. The corporation must keep a compensating balance of 20 % of any amount borrowed on deposit at the bank , but it normally does not have a cash balance account with the bank . What is the effective cost of the loan ?