Chapter 5 HW Intme Acct
.docx
School
Purdue University, Fort Wayne**We aren't endorsed by this school
Course
BUS 311
Subject
Accounting
Date
Dec 16, 2024
Pages
2
Uploaded by ProfDiscovery18850
Chapter 5 HWBE5.14N=8I=8%PV=?PV-OA= $25,000(PVF-OA8, 8%)(PVF4, 8%) =$25,000(5.74664)(0.73503)=$105,599BE5.15PV= $2,000,000(PVF10, 8%)= $2,000,000(0.46319)=$926,3802,000,000*0.07= 140,000PVF-OA= 140,000(PVF-OA10, 8%)=140,000(6.71008)=1,865,7911865791+926380=$1,865,791E5.4a.FV-OA= 4000(FVF-OA20, 8%)=4000(45.76196)=183,047.841+8%=1.08$183,047.84*1.08=$197,692b.PV-0A=2500(PV-OA30, 5%)=2500(15.37245)=$38,431.131+5%=1.05$38,431.13*1.05=$40,353c.FV-OA=2000(FV-OA15, 10%)=2000(31.77248)=$63,544.961+10%=1.10$63,544.96*1.10=$69,899d.PV-OA=1000(PVF-OA6, 9%)=1000(4.48592)=$4,485.921+9%=1.09$4,485.92*1.09=$4,890E5.6
Accept the bonus nowa.FV=12000(FVF10, 5%)=12000(1.62889)=$19,547b.FV-OA= 600,000(FVF-OA15, 10%)=600,000(31.77248)=$19,063,48820,000,000-19,063,488=$936,512c.PV=70,000(PVF10, 4%)=70,000(0.67556)=$47,289E5.7a.=$100,000(PVF15, 6%)=100,000(0.55526) =$55,526=5,000(PVF-OA15, 4%)=5,000(11.11839)=$55,592$55,526+$55,592=111,118b.=$100,000(PVF15, 5%)=100,000(0.48102)=$48,102=5000(PVF-OA15, 5%)=5000(10.37966)=$51,898$48102+$51898=$100,000c.$100,000(PVF15, 6%)=$100,000(0.41727)=$41,727=$5,000(PVF-OA15, 6%)=$5,000(9.71225)=$48,561=$41727+$48561=$90,288E5.12Lease Building C because the PV of its net cost is the leasta.PV=$600,000b.$69,000*8.78432=$606,118c.$7,000*7.84314=$54,902Cash Purchase Price650,000PV of Rental Income(54,902)Net Present Value$595,098E5.18PV-OA=300,000(PVF-OA15, 8%)=300,000(8.55948)= $2,567,844The recommended method of payment would be the 15 annual payments of the $300,000 because the PV of those payments is less than the immediate cash pay