fbpx

Mmha 6160 week 6 assignment 9.1 a. what is an opportunity cost

Don't use plagiarized sources. Get Your Assignment on
Mmha 6160 week 6 assignment 9.1 a. what is an opportunity cost
Just from $13/Page
Order Now

MMHA 6160 Week 6 Assignment

 

9.1  a. What is an opportunity cost rate?

       b. How is this rate used in time value analysis?

       c. Is this rate a single number that is used in all situations?

9.4  Find the following values assuming a regular, or ordinary, annuity:

                a. Ther present value of $400 per year for ten years at 10 percent

                b. The future value of $400 per year for ten years at 10 percent

                c. The present value of $200 per year for five years at 5 percent

                d. The future value of $200 per year for five years at 5 percent

9.6  Consider the following uneven cash flow stream:

Year  CashFlow:

0                                                                              $         0

1                                                                                      250

2                                                                                      400

3                                                                                      500

4                                                                                      600

5                                                                                      600

 

a.       What is the present (Year 0) value if the opportunity cost (discount) rate is 10 percent?

b.      Add an outflow (or cost) of $1,000 at Year 0. What is the present value (or net present value of the stream?

9.7  Consider the following uneven cash flow stream:

                YearCashFlow:

0                                                                                                                          $2,000

1                                                                                                                            2,000

2                                                                                                                                    0

3                                                                                                                            1,500

4                                                                                                                            2,500

5                                                                                                                            4,000

a.       What is the present (Year 0) value of the cash flow stream if the opportunity cost rate is 10 percent?

b.      What is the future (Year 5) value of the cash flow stream if the cash flows are invested in an account that pays 10 percent annually?

9.9  Assume that you just won $35 million in the Florida lottery, and hence the state will pay you 20 annual payments of $1.75 million each beginning immediately. If the rate of return on securities of similar risks to the lottery earnings (e.g., the rate on 20 year U.S. Treasury bonds) is 6 percent, what is the present value of your winnings?

 

 

** ALL WORK MUST BE COMPLETED and SHOWN in EXCEL**

Other Blog Posts

What are the key elements of an essay

You may clearly understand what an essay is and have had the experience of writing a number. However, it is […]

Feb 25th, 2022

How to write a research paper fast

The day inevitably comes; you need to submit your assignment. You have been procrastinating on writing your paper until the […]

Feb 24th, 2022

220+ best humanities research paper topics

Choosing a paper topic can be a daunting task for any assignment. A student may face agony trying to come […]

Feb 24th, 2022

How to write a media analysis essay

The media is an integral part of modern society. Think of what would happen to the world if there were […]

Feb 23rd, 2022

Great tricks on how to write a hypothesis in 2022

A hypothesis is a statement that can be proven by scientific research. It proves the theory of action and reaction, […]

Feb 22nd, 2022

How to get better at math

Math is not difficult. However, it is complex and tough compared to other subjects and requires a little bit more […]

Feb 22nd, 2022