DOUBLE DECLINING BALANCE method. Cost=$48,000, SV= $4,000, Life=4 years. Year BV
ID: 2469016 • Letter: D
Question
DOUBLE DECLINING BALANCE method. Cost=$48,000, SV= $4,000, Life=4 years.
Year
BV Beg. of Yr.
Rate
Depr. Expense
Acc. Depr.
Book Value, End of Year
1
2
3
4
Present Value Concepts-- Fill in the table with the correct values. Show your formulas.
PV of $1
PV of Annuity of $1
Periods 6.5%
Periods 6.5%
1
1
2
2
3
3
Future Value Problem
Toni invests $3,000 today in a project that earns 10% per year. How much will Toni’s investment grow to in 4 years? Show your work. _________________________
Present Value of a Stream of Unequal Cash Flows
Fred is looking at a project with the following cash flows:
0
1
2
3
$15,000
$28,000
$30,000
PV = $_________
Can you calculate the present value of this stream of unequal cash flows, using a discount rate of 6%? OK to use a present value table for this one.
Year
BV Beg. of Yr.
Rate
Depr. Expense
Acc. Depr.
Book Value, End of Year
1
2
3
4
Explanation / Answer
**Present value factor can be obtained from table
year Cash flow Present value factor@6% Present value *cash flow 1 15000 .94340 14151 2 28000 .89000 24920 3 30000 .83962 25188.6 Present value 64259.60Related Questions
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