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Problem 1. Annual cash inflows that will arise from an investment are given below. ...

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Accounting

Problem 1.

Annual cash inflows that will arise from an investment are given below.

Year 1 5,000

Year 2 4,000

Year 3 8,000

Year 4 6,000

Total $23,000

Compute the present value of the cash inflows assuming a 12% discount rate.

Problem 2.

Lennox Company plans to construct a new factory 10 years from now. It is estimated the factory will cost $1,000,000 to build. What lump sum amount should the company invest now to have $1,000,000 available at the end of the 10-year period? Assume that the company can invest money at 12%.

Problem 3.

Congratulations! Youve won the lottery. Your winnings? You will receive $20,000 annually for 10 years! Assuming you can earn 10% on your investments, what is the present value of your winnings?

Problem 4.

You borrow $10,000 from the bank today and promise equal annual repayments for 10 years. Assuming a 6% interest rate, how much is each annual repayment?

PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT, USE "ORIGINAL CONTENT" NOT USED BEFORE ON CHEGG

PLEASE ANSWER THROUGHLY TO ALL ANSWER TO BEST ABILITES. THANKS.

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