Wk 3 - Set 1, Part 1 Week 3 Financial Exercises Problem Set 1, Part 1 Complete the following problems using either the financial functions in Excel or the Present Value and Future Value formulas as...

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Wk 3 - Set 1, Part 1 Week 3 Financial Exercises Problem Set 1, Part 1 Complete the following problems using either the financial functions in Excel or the Present Value and Future Value formulas as noted below: PV = FV * 1 / (1+i)^nFV = PV * (1+i)^n (1)If you wish to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%? Answer: (2)What will $110,000 grow to be in 9 years if it is invested today at 11%? Answer: (3)You would like to have $200,000 in a college fund in 15 years. How much do you need today if you expect to earn 12% while you are investing to pay for your child’s college? Answer: (4)You have been offered $3,000 in 4 years for providing $2,000 today into a business venture with a friend. If interest rates are 10%, is this a good investment for you? Answer: (5)What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate is compounded monthly? Answer: (6)How many years will it take for $136,000 to grow to $468,000 if it is invested in an account with an annual interest rate of 8% Answer: (7)At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years? Answer: &"Arial,Regular"&10 Wk 2 Financial Exercises - Part 1 HCS/385 v4 Page &P of &N &"Arial,Regular"&10HCS/385 v4 &"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved. &"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved. Wk 3 - Set 1, Part 2 Week 3 Financial Exercises Problem Set 1, Part 2 Complete the following problems: (1)Calculate the Net Present Value (NPV) of the following cash flow stream if the required rate is 12%: Year012345 Cash Flow(230,000)60,00060,00060,00060,00060,000 Is this a good project for the business to accept? Explain why or why not. Answer: (2)Calculate the Net Present Value (NPV) of the following cash flow projections based on a required rate of 10.5%: Year01234 Cash Flow(120,000)35,00047,50055,00062,000 Is this a good project for the business to accept? Explain why or why not. Answer: (3)A company needs to decide if it will move forward with two new products that it is evaluating. The two initiatives have the following cash flow projections: Project A Year01234 Cash Flow-800,000220,000265,000292,000317,000 Project B Year012345 Cash Flow-650,000175,000175,000175,000175,000175,000 Based on the risk of each project, the company has a required rate of return of 11% for Project A and 11.5% for Project B. The company has a $1.5 million budget to spend on new projects for the year. Should the company move forward with one, both, or neither of the two new products? Show your work to support your answer. Answer: (4)Calculate the internal rate of return (IRR) of the following cash flows: Year01234567 Cash Flow(1,650,000)330,000365,000380,000415,000405,000370000294,000 Answer: (5)If a company has a required rate of return of 15%, should the following project be accepted based on these expected cash flows below? Year0123456 Cash Flow(274,000)68,00073,00076,50078,00082,50077,000 Please explain why or why not the company should move forward with this endeavor. Answer: (6)Based on the investor expectations of earning at least 12%, should this projected below be completed? Year0123456 Cash Flow(133,000)37,00042,75044,00046,50082,50077,000 Please explain why or why not the company should move forward with this endeavor. Answer: &"Arial,Regular"&10Wk 2 Financial Exercises - Part 2 HCS/385 v4 Page &P of &N &"Arial,Regular"&10HCS/385 v4 &"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved. &"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved. Wk 3 - Set 2, Part 1 Week 3 Financial Exercises Problem Set 2, Part 1 Using the table below, describe the types of budgets. In your description, include: • The objective of the budget • How the budget assists an organization in managing its financial activities • What types of data need to be included in that specific budget Type of BudgetDescription Cash Flow Operating Sales Static Financial Wk 3 - Set 2, Part 2 Week 3 Financial Exercises Problem Set 2, Part 2 Complete the following problems using the following ratios: Sales level at which operating income is zero o    If sales above breakeven, then profit o    If sales below breakeven, then loss o    Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio (1)Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit. Answer: (2)Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%. Answer: (3)Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit. Answer: Wk 3 - Set 2, Part 3 Week 3 Financial Exercises Problem Set 2, Part 3 Complete the following problems: (1)How much will you have saved after 6 years by contributing $1,200 at the end of each year if you expect to earn 11% on the investment? Answer: (2)A business owner plans to deposit his annual profits in an investment account earning a 9% annual return. If the owner starts with their first deposit today for $22,000 and expects to make the same profit for the next 7 years, how much will be saved for retirement at that point? Answer: (3)An investor plans to invest $500 a year and expects to get a 10.5% return. If the investor makes these contributions at the end of the next 20 years, what is the present value of this investment today? Answer: (4)What is the present value (PV) of a 12-year lease arrangement with an interest rate of 7.5 percent that requires annual payments of $4,250 per year with the first payment being due now? Answer: (5)A recent college graduate hopes to have $200,000 saved in their retirement account 25 years from now by contributing $150 per month in a 401(k) plan. The goal is to earn 10% annually on the monthly contribution. Will they have the $200,000 at the end of the 25 years? Answer:
Answered Same DayMar 08, 2021

Answer To: Wk 3 - Set 1, Part 1 Week 3 Financial Exercises Problem Set 1, Part 1 Complete the following...

Shakeel answered on Mar 09 2021
154 Votes
Wk 3 - Set 1, Part 1
            Week 3 Financial Exercises
            Problem Set 1, Part 1
            Complete the following problems using either the financial functions in Excel or the Present Value and Future Value formulas as noted below:
            PV = FV * 1 / (1+i)^n    FV = PV * (1+i)^n
        (1)    If you wish to have $60,000 in 8 yea
rs, how much do you need to deposit in the bank today if the account pays an interest rate of 9%?                                            PV    30,111.98
            Answer:We need to deposit $30,111.98 today.
        (2)    What will $110,000 grow to be in 9 years if it is invested today at 11%?                                            PV    43001.7248583624
            Answer:$43,001.725
        (3)    You would like to have $200,000 in a college fund in 15 years. How much do you need today if you expect to earn 12% while you are investing to pay for your child’s college?                                            PV    36539.2522528399
            Answer:We need toinvest $36,539.25 today
        (4)    You have been offered $3,000 in 4 years for providing $2,000 today into a business venture with a friend. If interest rates are 10%, is this a good investment for you?                                            PV    2049.0403660952
            Answer:Yes, it is good investment for me because the PV of $3,000 is $2,049.04, larger than $2,000.
        (5)    What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate is compounded monthly?                                            FV    197117.280902767
            Answer:The amount will be $197,117.28
        (6)    How many years will it take for $136,000 to grow to $468,000 if it is invested in an account with an annual interest rate of 8%                                            Years    16.06
            Answer:It will take 16.06 years
        (7)    At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?                                            Interest rate    9.36%
            Answer:The interest rate would be 9.36%
&"Arial,Regular"&10 Wk 2 Financial Exercises - Part 1
HCS/385 v4
Page &P of &N
&"Arial,Regular"&10HCS/385 v4
&"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved.    
&"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved.    
Wk 3 - Set 1, Part 2
            Week 3 Financial Exercises
            Problem Set 1, Part 2
            Complete the following problems:
        (1)    Calculate the Net Present Value (NPV) of the following cash flow stream if the required rate is 12%:
            Year    0    1    2    3    4    5
            Cash Flow    (230,000)    60,000    60,000    60,000    60,000    60,000        NPV    (13,713.43)
            Is this a good project for the business to accept? Explain why or why not.
            Answer: No, this is not a good projectfor the business to accept because it has negative NPV.
        (2)    Calculate the Net Present Value (NPV) of the following cash flow projections based on a required rate of 10.5%:
            Year    0    1    2    3    4
            Cash Flow    (120,000)    35,000    47,500    55,000    62,000            NPV    32,925.42
            Is this a good project for the business to accept? Explain why or why not.
            Answer:Yes, this project is good for the business to accept as it has positive NPV.
        (3)    A company needs to decide if it will move forward with two new products that it is evaluating. The two initiatives have the following cash flow projections:
            Project A
            Year    0    1    2    3    4
            Cash...
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