Calculate the present value given the following information
Practical Analysis
1. Calculate
the present value given the following information: future value = $1,000;
number of periods = 3; interest rate of 5%.
2. Calculate
the present value given the following information: future value = $800; number
of periods = 5; interest rate of 10%.
3. Calculate
the future value given the following information; present value $500; number of
periods = 4; interest rate of 5%.
4. Calculate
the present value given the following information; future value = $2,500; number
of periods = 2; interest rate of 15%.
5. Calculate
the present value of an annuity given the following information: number of
periods = 3, interest rate of 6%, and a payment of $200.
6. Calculate
the net present value with a required return of 10%, an initial investment of
$30,000, and 10 years of payments of $6,000 each.
7. Calculate
the net present value with a required return of 8%, an initial investment of
$45,000, and cash flows of $12,000, $20,000, $10,000, and $6,000 for years 1
through 4 respectively.
8. Given
the following information, a required return of 8%, an initial investment of
$45,000 and cash flows of $12,000, $20,000, $10,000 and $6,000 for years 1
through 4 respectively, should the investment be done?
9. Calculate
the net present value with a required return of 5%, an initial investment of
$45,000, and cash flows of $9,000, $8,000, $15,000, and $20,000 for years 1
through 4 respectively.
10. Given
the following information, with a required return of 5%, an initial investment
of $45,000, and cash flows of $9,000, $8,000, $15,000, and $20,000 for years 1
through 4 respectively. Is the investment considered to be a good investment?
11. Calculate
break-even per unit given the following information: sales per unit of $25,
variable costs of $13, fixed costs of $5,000.
Remember, you cannot have partial units, so you will need to round up if
the answer is decimal.
12. Calculate
break-even in dollars given the following information: sales per unit of $40,
variable costs of $15, fixed costs of $15,000, and a desired profit of $20,000.
Remember, you cannot have partial units,
so you will need to round up if the answer is a decimal.
13. Calculate
the degree of operating leverage given the following information; sales of
$25,000; variable costs of $13,000; and operating income of $7,000 for year one, and sales of $40,000; variable cost
$15,000; and operating income of $16,000 for
year 2. Your answer should be
rounded to two decimal places. (For this
problem, specifically calculate the difference between the sales and the
operating income for each of the given years.
This will allow you to calculate the degree of operating leverage.)