FIN 486 CART Become Exceptional--fin486cart.com FIN 486 Entire Course | Page 11

investments shown in the following table. The purchase price, the
amount of the single cash inflow, and its year of receipt are given for
each investment. Which purchase recommendations would you make,
assuming that Tom can earn 10% on his investments? Investment
Price Single cash inflow Year of receipt A $18,000 $30,000 5 B 600
3,000 20 C 3,500 10,000 10 D 1,000 15,000 40 P5–21 Time value:
Annuities Marian Kirk wishes to select the better of two 10-year
annuities, C and D. Annuity C is an ordinary annuity of $2,500 per
year for 10 years. Annuity D is an annuity due of $2,200 per year for
10 years. a. Find the future value of both annuities at the end of year
10 assuming that Marian can earn (1) 10% annual interest and (2)
20% annual interest. b. Use your findings in part a to indicate which
annuity has the greater future value at the end of year 10 for both the
(1) 10% and (2) 20% interest rates. c. Find the present value of both
annuities, assuming that Marian can earn (1) 10% annual interest and
(2) 20% annual interest. d. Use your findings in part c to indicate
which annuity has the greater present value for both (1) 10% and (2)
20% interest rates. e. Briefly compare, contrast, and explain any
differences between your findings using the 10% and 20% interest
rates in parts b and d.
==============================================
FIN 486 Week 2 Learning Team Assignment Department
Budgets (2 Papers)
FOR MORE CLASSES VISIT
www.fin486cart.com
This Tutorial contains 2 Different Papers Your Learning Team is the
financial management team for Huffman Trucking, responsible for
creating the financial portion of a strategic plan. You must obtain
information from the marketing, sales, operations, and human
resources departments to complete it. Resource: Virtual Organizations