Can you help me understand this Accounting question?
What is the present value of the following cash flow stream at a rate of 15.0%?
|
Years: |
0 |
1 |
2 |
3 |
4 |
|
|
CFs: |
$0 |
$1,500 |
$3,000 |
$4,500 |
$6,000 |
Select one:
a. $10,261
b. $10,859
c. $9,962
d. $12,453
e. $12,154
Question 2
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You plan to invest in securities that pay 11.2%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20?
Select one:
a. 6.36
b. 5.63
c. 4.60
d. 5.85
e. 5.68
Question 3
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Suppose a U.S. treasury bond will pay $1,050 five years from now. If the going interest rate on 5-year treasury bonds is 4.25%, how much is the bond worth today?
Select one:
a. $852.72
b. $673.65
c. $878.31
d. $656.60
e. $750.40
Question 4
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What is the PV of an annuity due with 5 payments of $7,900 at an interest rate of 5.5%?
Select one:
a. $41,997.01
b. $40,573.38
c. $43,776.54
d. $35,590.69
e. $41,285.20
Question 5
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What’s the future value of $4,400 after 5 years if the appropriate interest rate is 6%, compounded semiannually?
Select one:
a. $5,913.23
b. $4,612.32
c. $7,214.14
d. $5,381.04
e. $5,794.97
Question 6
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Last year Thomson Inc’s earnings per share were $3.50, and its growth rate during the prior 5 years was 6.6% per year. If that growth rate were maintained, how many years would it take for Thomson’s EPS to triple?
Select one:
a. 15.99
b. 15.13
c. 17.19
d. 15.81
e. 13.41
Question 7
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Last year Dania Corporation’s sales were $525 million. If sales grow at 9.8% per year, how large (in millions) will they be 8 years later?
Select one:
a. $1,131.30
b. $1,109.12
c. $842.93
d. $1,142.39
e. $1,364.22
Question 8
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Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.0%, how much is the bond worth today?
Select one:
a. $466.57
b. $613.91
c. $736.70
d. $564.80
e. $724.42
Question 9
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Your grandmother just died and left you $47,500 in a trust fund that pays 6.5% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginningof each of the next 3 years and end up with zero in the account?
Select one:
a. $13,019.14
b. $9,894.54
c. $14,321.05
d. $10,415.31
e. $12,628.56
Question 10
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What is the present value of the following cash flow stream at a rate of 12.00%?
|
Years: |
0 |
1 |
2 |
3 |
4 |
|||||
|
CFs: |
$0 |
$75 |
$225 |
$0 |
$300 |
|||||
Select one:
a. $402.03
b. $546.24
c. $511.28
d. $436.99
e. $441.36
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