Acc550-6

E6-4(Computation of Future appreciates and Present measures) utilise financial calculator. a). FV=$247,114.61 20 earningss, $5000 at beginning, compound annually 8% b).PV=$25,924.01 $2500, beginning of 30 periods, 10% compound annually c).FV completioning=$63,544.96 15 deposits, $2000 at 10%annually d).PV=$14,668.95 6 payments, $3000, circumvent at beginning, 9% compounded annually E6-6(Future Value and Present Value Problems) exploitation financial calculator. a).period=10 $12,000 deposit 10% compounded annually FV=$31,124.91 b).$20,000,000 15 form bond Sinking store deposits of $620,000 on the become day of individually year 10% yield Will the blood line at the blockade of 15 year be fitting to trouble bond? If not, when? FV=$19,698,938.65 NO, 15 year and 2 months. C).$40,000 motivator vs. deferred bonus of $75,000 paid in 10 years, 8% interest FV=$86,357 vs. $75,000 PV=$40,000 vs. $34,740 He would be fail rancid to take the $40,000 now and give in the same fund that his employer is investing in. P6-10(Analysis of use up vs. procure) Using financial calculator on android phone. Which of the two approaches should Dunn Inc. remark? (Cost of funds is 10%) In this case it would be better for Dunn Inc. to procure the building.

PURCHASE: Purchase cost=$1,850,000 Down payment=$400,000 be=$1,450,000 over 5 years at $350,000/yr(interest at residuum of year) Life of 12 years =FV=$2,136,785+400,000+496,000=$3,032,785.00 Total purchase exchange for $500,000 Expenses= $40,000 (taxes at end of year) $27,000(insurance at beginning of year) $16,000(other, caution etc) $83,000 x 12years =$996,000-$500,000=$496,000(cost of building) LEASE: Lease=$270,000(payments to be made at beginning) old age=12 set=$100,000(to be returned at end of lease) FV=$6,351,132.28 Total lease PV=$2,023,666.47If you privation to get a full essay, line of battle it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper