## Teaching Net Present Value and Future Value

Teaching Net Present Value (NPV) & Future Value (FV) for \$11 Only
You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock. You have been given the following objectives:

Upon completing your Net Present Value (NPV) and Future Value (FV) Training Program, employees should be able to do the following:

## Questions with Answer in Excel Sheet

1. How long does it take for the following to happen? \$450 grows into \$725.50 at 12% compounded monthly.
2. How long does it take for the following to happen? \$5,000 grows into \$6724.44 at 10% compounded quarterly.
3. How long does it take for the following to happen? \$856 grows into \$1,122 at 7%.
4. Find out present value when interest rate is 18%. Effective interest rate is 19.56% and future value is \$10,000 and time period is 3 years.
5. The Lexington Property Development Company has a \$10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 7% compounded continuously?
6. The Lexington Property Development Company has a \$10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 9%?
7. What interest rates are implied by the following lending arrangements? You borrow \$500 and repay \$555 in one year?
8. What interest rates are implied by the following lending arrangements? You lend \$750 and are repaid \$1,114.46 in five years with quarterly compounding.
9. What will a deposit of \$4,500 left in the bank be worth under the following conditions: Left for five years at 8% compounded quarterly?
10.  What will a deposit of \$4,500 left in the bank be worth under the following conditions: Left for six years at 10% compounded semiannually?

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## Finance Questions Related to PV, FV, FVOA & NPV

Finance Questions Related to PV, FV, FVOA & NPV in \$2.50 only

1. Calculate the future value of 1,535 invested today for 8 years at 6 percent.

2. What is the total present value of the following cash stream, discounted at 8 percent?

Year    1       2      3      4       5

Amt   400   750  945  145   78

3. If you invested \$2,000 per year into an IRA for 30 years and received 6 percent return each year, what would the account balance be in 30 years?

4. A friend gives you a proposition. If you give him 1,500 dollars today, he will guarantee your receive 12 percent a year for the next 5 years. How much money will you receive from him at the end of 5 years?

5. You want to buy a new Computer Aided Design (CAD) system for your business. The cost of the system is \$150,000 and you expect to save over \$40,000 per year in reduced labor costs. Please calculate the net present value of the CAD if your required return is 10 percent and the life of the system is expected to be 5 years.

6. Your company is considering converting its heating system in the main office from coal to heating oil. The initial cost of removing the coal fired furnace and installing an new oil fired unit is \$60,000. The life of the analysis is 7 years. In the past you spent \$25,000 per year on coal. The new company says you will spend no more than \$15,000 per year on heating oil. If your required return is 12 percent, should you make this investment? Please calculate the net present value of this project.

Price of Answer: Just US\$2.50 only

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If you need any type of help regarding Homework, Assignments, Projects, Case study, Essay writing or any thing else then just email us at [email protected]solvemyquestion.com.  We will get back to you ASAP. Do not forget to maintain the time frame you need you work to be done.

## Finance Questions

Finance Questions in \$10 only

1. How long does it take for the following to happen? \$450 grows into \$725.50 at 12% compounded monthly.

2. How long does it take for the following to happen? \$5,000 grows into \$6724.44 at 10% compounded quarterly.

3. How long does it take for the following to happen? \$856 grows into \$1,122 at 7%.

4. The Lexington Property Development Company has a \$10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 18% compounded monthly?

5. The Lexington Property Development Company has a \$10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 7% compounded continuously?

6. The Lexington Property Development Company has a \$10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 9%?

7. What interest rates are implied by the following lending arrangements? You borrow \$500 and repay \$555 in one year

8. What interest rates are implied by the following lending arrangements? You lend \$750 and are repaid \$1,114.46 in five years with quarterly compounding.

9. What will a deposit of \$4,500 left in the bank be worth under the following conditions: Left for five years at 8% compounded quarterly?

10. What will a deposit of \$4,500 left in the bank be worth under the following conditions: Left for six years at 10% compounded semi-annually?

Price of Answer: Just US\$10 only (With Excel Sheet)

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If you need any type of help regarding Homework, Assignments, Projects,  Case study, Essay writing or any thing else then just email us at [email protected]solvemyquestion.com.  We will get back to you ASAP. Do not forget to maintain the time frame you need you work to be done.

## Finance Problems (Present Value and Future Value Related)

Finance Problems (Present Value and Future Value Related) in \$6 Only

You are saving for retirement. To live comfortably, you decide you will need to save \$2 million by the time you are 65. Today is your 30th birthday, and you decide, starting today and continuing on every birthday up to and including your 65the birthday, that you will put the same amount into a savings account. If the interest rate is 5%, how much must you set aside each year to make sure that you will have \$2 million in the account on your 65th birthday?
Problem #2
You realize that he plan in Problem #1 has a flaw. Because your income will increase over your lifetime, it would be more realistic to save less now and more later. Instead of putting the same amount aside each year, you decide to let the amount that you set aside grow by 3% per year. Under this plan, how much will you put into the account today? (Recall that you are planning to make the first contribution to the account today.)