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发布时间 : 星期日 文章Fundamentals of Corporate Finance ROSS Chap005更新完毕开始阅读e05e467a27284b73f242507b

Chapter 05 - Introduction to Valuation: The Time Value of Money

26. Today, you earn a salary of $36,000. What will be your annual salary twelve years from now if you earn annual raises of 3.6 percent? A. $55,032.54 B. $57,414.06 C. $58,235.24 D. $59,122.08 E. $59,360.45

Future value = $36,000 ? (1 + .036)12 = $55,032.54

AACSB: Analytic Bloom's: Application Difficulty: Basic

Learning Objective: 5-1 Section: 5.1

Topic: Future value

27. You own a classic automobile that is currently valued at $147,900. If the value increases by 6.5 percent annually, how much will the automobile be worth ten years from now? A. $244,035.00 B. $251,008.17 C. $270,013.38 D. $277,628.63 E. $291,480.18

Future value = $147,900 ? (1 + .065)10 = $277,628.63

AACSB: Analytic Bloom's: Application Difficulty: Basic

Learning Objective: 5-1 Section: 5.1

Topic: Future value

5-33

Chapter 05 - Introduction to Valuation: The Time Value of Money

28. You hope to buy your dream car four years from now. Today, that car costs $82,500. You expect the price to increase by an average of 4.8 percent per year over the next four years. How much will your dream car cost by the time you are ready to buy it? A. $98,340.00 B. $98,666.67 C. $99,517.41 D. $99,818.02 E. $100,023.16

Future value = $82,500 ? (1 + .048)4 = $99,517.41

AACSB: Analytic Bloom's: Application Difficulty: Basic

Learning Objective: 5-1 Section: 5.1

Topic: Future value

5-34

Chapter 05 - Introduction to Valuation: The Time Value of Money

29. This morning, TL Trucking invested $80,000 to help fund a company expansion project planned for 4 years from now. How much additional money will the firm have 4 years from now if it can earn 5 percent rather than 4 percent on its savings? A. $2,940.09 B. $3,651.82 C. $4,008.17 D. $4,219.68 E. $4,711.08

Future value = $80,000 ? (1 + .05)4 = $97,240.50 Future value = $80,000 ? (1 + .04)4 = $93,588.68 Difference = $97,240.50 - $93,588.68 = $3,651.82

AACSB: Analytic Bloom's: Analysis

Difficulty: Intermediate Learning Objective: 5-1 Section: 5.1

Topic: Future value

5-35

Chapter 05 - Introduction to Valuation: The Time Value of Money

30. You just received $225,000 from an insurance settlement. You have decided to set this money aside and invest it for your retirement. Currently, your goal is to retire 25 years from today. How much more will you have in your account on the day you retire if you can earn an average return of 10.5 percent rather than just 8 percent? A. $417,137 B. $689,509 C. $1,050,423 D. $1,189,576 E. $1,818,342

Future value = $225,000 ? (1 + .105)25 = $2,730,483 Future value = $225,000 ? (1 + .08)25 = $1,540,907 Difference = $2,730,483 - $1,540,907 = $1,189,576

AACSB: Analytic Bloom's: Analysis

Difficulty: Intermediate Learning Objective: 5-1 Section: 5.1

Topic: Future value

5-36