12, 13 , 14 Determine the amount of the average investment for a proposed invest

Question

12, 13 , 14

Determine the amount of the average investment for a proposed investment of $65,086.00 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $26,446.00 for the 4 years (round to two decimal points).

Select the correct answer.

$26,446.00

The rate of earnings is 6% and the cash to be received in one year is $55,344.00. Determine the present value amount, using the following partial table of present value of $1.00 at compound interest (round to two decimal points).

Select the correct answer.

$49,809.60

Below is a table for the present value of $1 at Compound interest.

Below is a table for the present value of an annuity of $1 at compound interest.

Using the tables above, determine the present value of $15,995.00 (rounded to the nearest dollar) to be received at the end of each of the next 3 years, assuming an earnings rate of 10%.

Select the correct answer.

$16,271.50 $6,097.00 $32,543.00

$26,446.00

The rate of earnings is 6% and the cash to be received in one year is $55,344.00. Determine the present value amount, using the following partial table of present value of $1.00 at compound interest (round to two decimal points).

Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636

Select the correct answer.

$43,832.45 $50,307.70 $52,189.39

$49,809.60

Below is a table for the present value of $1 at Compound interest.

Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605

Using the tables above, determine the present value of $15,995.00 (rounded to the nearest dollar) to be received at the end of each of the next 3 years, assuming an earnings rate of 10%.

Select the correct answer.

$15,995 $14,396 $39,780 $20,794

Explanation / Answer

12 Average investment = 65086/2 = 32543 13 Present value amount = 55344*0.943= 52189.39 14 Present value = 15995*2.487= 39780

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