5. Toadies, Inc., has identified an investment project with the following cash f

Question

5.

Toadies, Inc., has identified an investment project with the following cash flows.

Year

Cash Flow

1

$

1,575

2

1,695

3

1,780

4

1,830

If the discount rate is 7 percent, what is the future value of the cash flows in year 4? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Future value

$

If the discount rate is 12 percent, what is the future value of the cash flows in year 4? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Future value

$

If the discount rate is 23 percent, what is the future value of the cash flows in year 4? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Future value

$   

6.

You want to buy a new sports coupe for $88,500, and the finance office at the dealership has quoted you a 7.0 percent APR loan for 72 months to buy the car.

What will your monthly payments be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Monthly payment

$

What is the effective annual rate on this loan? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Effective annual rate

%

7.

You

Toadies, Inc., has identified an investment project with the following cash flows.

Explanation / Answer

5.

If the discount rate is 7 percent, what is the future value of the cash flows in year 4? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))                   

Future value       $5,815.39                                                                                      

If the discount rate is 12 percent, what is the future value of the cash flows in year 4? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))                                  

Future value       $5,187.54                                                                                      

If the discount rate is 23 percent, what is the future value of the cash flows in year 4? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))                                  

Future value       $   68.70

6.

You want to buy a new sports coupe for $88,500, and the finance office at the dealership has quoted you a 7.0 percent APR loan for 72 months to buy the car.                                                                            

7%         

What will your monthly payments be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))                                                                                                        

Monthly payment           $1,508.84                                                                                      

What is the effective annual rate on this loan? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))                                                                                

Effective annual rate      7%                                                                                    

7. You

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