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Author Question: A firm wishes to establish a fund which, in 10 years, will accumulate to 10,000,000. The fund will ... (Read 193 times)

fahad

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on: Jul 10, 2018
A firm wishes to establish a fund which, in 10 years, will accumulate to 10,000,000. The fund will be used to repay an outstanding bond issue.
 
  The firm plans to make deposits, which will earn 12 percent, to this fund at the end of each of the 10 years prior to maturity of the bond. How large must these deposits be to accumulate to 10,000,000?

Question 2

The net present value is found by subtracting a project's initial investment from the present value of its cash inflows discounted at a rate equal to the project's internal rate of return.
 
  Indicate whether the statement is true or false


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Amiracle

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Financial Calculator: PV=0, FV=10000000, N=10, I=12, CPT PMT: 569,833.04

Answer to Question 2

FALSE


fahad

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Reply #2 on: Jul 10, 2018
Thank you


Amiracle

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Reply #3 on: Jul 10, 2018
No problemo


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