What is the future value of $1,000 a year for 40 years at 10percent interest? Assume annual compounding.
Question 1 options:
A) $301,115
B) $442,590
C) $259,056.52
D) $342,908
What is the future value of $1,000 a year for 40 years at 10percent interest? Assume annual compounding.
Question 1 options:
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Related questions
Merrill Corp. has the following information available about apotential capital investment:
| Initial investment | $ | 2,400,000 | |||||
| Annual net income | $ | 170,000 | |||||
| Expected life | 8 | years | |||||
| Salvage value | $ | 180,000 | |||||
| Merrillâs cost of capital | 8 | % | |||||
Assume straight line depreciation method is used.
Required:
1. Calculate the projectâs net present value. (FutureValue of $1, Present Value of $1, Future Value Annuity of $1,Present Value Annuity of $1.) (Use appropriate factor(s)from the tables provided. Do not round intermediate calculations.Round the final answer to nearest whole dollar.)
2. Calculate the net present value using a 10percent discount rate. (Future Value of $1, Present Value of $1,Future Value Annuity of $1, Present Value Annuity of $1.)(Use appropriate factor(s) from the tables provided. Do notround intermediate calculations. Round the final answer to nearestwhole dollar.)
