Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

*Please Show All Work* In each of the following Home Depot proposals determine t

ID: 2638219 • Letter: #

Question

*Please Show All Work*

In each of the following Home Depot proposals determine the number of years that the given end-of year-cash flow must continue to provide the given rate of return on the given initial amount.

Case                Initial amount                  Annual cash flow               Rate of return                 

A                 $   1,000                            $ 250                                     11%

B                      150,000                             30,000                                15

C                      80,000                               10.000                                 10

D                      600                                    275                                       9

E                     17,000                               3.500                                    5

Explanation / Answer

Case Initial Amt. Cash Flow p.a. Rate of return Req. cash flow No. of Year A $1,000.00 $250.00 11% $110.00 0.44 B $150,000.00 $30,000.00 15% $22,500.00 0.75 C $80,000.00 $10,000.00 10% $8,000.00 0.80 D $600.00 $275.00 9% $54.00 0.20 E $17,000.00 $3,500.00 5% $850.00 0.24