FIN 370 Finance For Business Week 1 Question and Problem Sets Answers
Ch. 5: Questions 3 & 4 (Question and Problems section): Microsoft® Excel® templates provided for Problems 3 and 4
3. Calculating Present Values [LO2] For each of the following, compute the present value:
4. Calculating Interest Rates [LO3] Solve for the unknown interest rate in each of the following:
Ch. 6: Questions 2 & 20 (Questions and Problems section)
2. Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,700 per year for eight years, whereas Investment Y offers to pay you $6,700 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent?