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E6-4(Computation of Future appreciates and Present Values) Using financial calculator. a). FV=$247,114.61 20 payments, $5000 at start out, compound social classly 8% b).PV=$25,924.01 $2500, beginning of 30 periods, 10% compounded annually c).FV completioning=$63,544.96 15 deposits, $2000 at 10%annually d).PV=$14,668.95 6 payments, $3000, received at beginning, 9% compounded annually E6-6(Future Value and Present Value Problems) Using financial calculator. a).period=10 $12,000 deposit 10% compounded annually FV=$31,124.91 b).$20,000,000 15 year bond Sinking blood deposits of $620,000 on the become day of each year 10% yield Will the fund at the end of 15 year be able to trouble bond? If not, when? FV=$19,698,938.65 NO, 15 year and 2 months. C).$40,000 inducing vs. deferred bonus of $75,000 paid in 10 years, 8% absorb FV=$86,357 vs. $75,000 PV=$40,000 vs. $34,740 He would be better off to take the $40,000 without delay and invest in the same fund that his employer is investing in. P6-10(Analysis of call for vs. Purchase) Using financial calculator on android phone. Which of the ii approaches should Dunn Inc. follow? (Cost of funds is 10%) In this case it would be better for Dunn Inc. to purchase the building.

PURCHASE: Purchase cost=$1,850,000 surmount payment=$400,000 be=$1,450,000 over 5 years at $350,000/yr(interest at end of year) Life of 12 years =FV=$2,136,785+400,000+496,000=$3,032,785.00 make ou t purchase exchange for $500,000 Ex! penses= $40,000 (taxes at end of year) $27,000(insurance at beginning of year) $16,000(other, maintenance etc) $83,000 x 12years =$996,000-$500,000=$496,000(cost of building) LEASE: Lease=$270,000(payments to be do at beginning) old age=12 Deposit=$100,000(to be returned at end of lease) FV=$6,351,132.28 Total lease PV=$2,023,666.47If you privation to bum about a full essay, order it on our website: OrderCustomPaper.com

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