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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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
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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)^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
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&"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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