Author Question: You have been accepted into a prestigious private university in Southern California - ... (Read 52 times)

jjjetplane

  • Hero Member
  • *****
  • Posts: 556
You have been accepted into a prestigious private university in Southern California - congratulations Since no one from this school has ever graduated in only four years, you anticipate that you will need to make 10 semi-annual tuition payments of
 
  25,000 each with the first cash flow six months from today. If you choose to discount these cash flows at an annual rate of 6, what is the present value cost of tuition to attend your university of choice?
  A) 186,814.54
  B) 184,002.18
  C) 250,000.00
  D) 213,255.07

Question 2

Which of the following statements regarding firms and value is NOT true?
 
  A) We can create value by taking on negative net present value projects.
  B) Shareholder control in and of itself has value.
  C) Value is ultimately what someone is willing to pay for a firm.
  D) It is important to know what is being valued; the assets or the equity in a firm.



shaikhs

  • Sr. Member
  • ****
  • Posts: 312
Answer to Question 1

D
Explanation: D) Via Calculator: N = 52, I =6/2, PMT = 25,000, Solve for PV = 213,255.07.

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

For a complete list of videos, visit our video library