10 C! 0:12 point Monroe Corporation is considering the purchase of new equipment. The equipment will cost $49,000 today. However, due to its greater operating capacity, Monroe expects the new equipment to earn additional revenues of $8.500 by the end of each year for the next 10 years 1a. Assuming a discount rate of 7% compounded annually, calculate the present value of annuity. (EX. S1. PV of 51. EVA of S1, and PVA of 5) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.) 32740 Present value of annuity References 1-6. Should Monroe make the purchase? NO Yes 12 Maddy works at Burgers R Us. Het boss tells her that if she stays with the company for five years, she will receive a bonus of $6,000 With an annual discount rate of 8%, calculate the value today of receiving $6,000 in five years. (Ey of S1, PV of S1. EVA of S1, and PVA of 5.1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.) 0.12 points Present value 03:27 Book Print Reference Homework Saved He 13 The four people below have the following investments 0.12 points Invested Interest Amount Rate Jerry $13,000 121 Elaine 16.000 6 George 23,000 8 Kraner 19,000 10 Compounding Quarterly Semiannually Annually Annually 03:26.58 Book Required: 1-a. Calculate the future value at the end of six years. (FV of $1. PV of $1. FVA of S1, and PVA of 51) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Pent Preferences Future Value Jerry Elaine George Kramer 1-b. Who has the greatest investment accumulation? Jerry Elvine George Kramer 14 0.12 points You want to save for retirement. Assuming you are now 25 years old and you want to retire at age 55. you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 13% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 today. Required: How much do you expect to have in 30 years? (Ey of S1. PV of S1, EVA of S1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.) 02263 Future value woo Print References The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs Independent contracts with the following terms: Contract Terms Contract Payment Amount Date Derek $600,000 2 years Isabel 640,000 3 years Meredith 500,000 Today George 500,000 1 year 23:26.09 Book Print Required: 1-a. Assuming an annual discount rate of 9%, calculate the present value of the contract amount (Fy of SI. PV of $1. EVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) rences Present Value Derek Isabel Meredith Georgo 1-b. Which of the four actors is actually being paid the most? Derek Isabel 16 Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one. half down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year George is considering buying equipment from Lights, Camera, and More for $150,000 and therefore has the following payment options: 0.12 points Payment Today $150,000 175,000 0 Option 1 Option 2 Option Payment in One Year 5 0 82.500 172,500 Total Payment $ 150.000 157.500 172,500 03:25:51 Book Print Required: 1-a. Assuming an annual discount rate of 11%, calculate the present value and the total cost (EV of 51, PV of $1. EVA of S1, and PVA of 51) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) References Payment Today Present Value of Payment in One Year Total Present Value for Total Cost) Option 1 Option 2 Option 3 1.b. Which option's cost has the lowest present value? Option 1 Ootion 2