Words of Wisdom:

"We all marvel at the beauty of the Butterfly, but rarely take into account the changes it has undergone to get there." - Axotlyorill

Acc 206 Week 5 Assignment Chapter Eight Problems

  • Date Submitted: 10/09/2015 01:45 AM
  • Flesch-Kincaid Score: 54.3 
  • Words: 794
  • Essay Grade: no grades
  • Report this Essay
To purchase this material click below link
http://www.assignmentcloud.com/ACC-206/ACC-206-Week-5-Assignment-Chapter-Eight-Problems

For more classes visit
www.assignmentcloud.com
Chapter Eight Problems
Please complete the following 5 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.
Chapter 8 Exercise 1:
Basic present value calculations
Calculate the present value of the following cash flows, rounding to the nearest dollar:
a.       A single cash inflow of $12,000 in five years, discounted at a 12% rate of return.
b.       An annual receipt of $16,000 over the next 12 years, discounted at a 12% rate of return.
c.       A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rate of return.
d.       An annual receipt of $8,000 for three years followed by a single receipt of $10,000 at the end of Year 4. The company has a 12% rate of return.

Chapter 8 Exercise 4:
Cash flow calculationsand net present value
On January 2, 20X1, Bruce Greene invested $10,000 in the stock market and purchased 500 shares of Heartland Development, Inc. Heartland paid cash dividends of $2.60 per share in 20X1 and 20X2; the dividend was raised to $3.10 per share in 20X3. On December 31, 20X3, Greene sold his holdings and generated proceeds of $13,000. Greene uses the net-present- value method and desires a 16% return on investments.
a.       Prepare a chronological list of the investment's cash flows. Note: Greene is entitled to the 20X3 dividend.
b.       Compute the investment's net present value, rounding calculations to the nearest dollar.
c.       Given the results of part (b), should Greene have acquired the Heartland stock? Briefly explain.

Chapter 8...

Comments

Express your owns thoughts and ideas on this essay by writing a grade and/or critique.

  1. No comments