posted by .

i Craig:

I am already having trouble understanding Chapter 6, problem 2 on page 207 of textbook. I am currently on week 3 of the FIN 200 class. The problem reads as follows:

If you require a 9 percent return on your investments, which would you prefer?

a. $5,000 today
b. $15,000 five years from today
c. $1,000 per year for 15 years

Please help or give me some guidance. Thank you.

  • Finance -

    b) present value = 15000(1.09)^-5
    = ....

    c) present value = 1000[1 - 1.09)^-15]/.09
    = .... (assuming payments made at the end of the year)

  • Fin 200 -

    Hi Reba,

    I am taking the same course as you are but only in week 1, I wanted to ask you for help with the statement of cash flow, did you understand how to accomplish this? I am very confused ... maybe you can help me.

    thank you,
    southern belle

  • Finance -

    We expect that we can receive annual incremental income after taxes of $15,000 which includes an adjustment for uncollectible accounts. What is the maximum commitment to A/R we should be willing to assume if our firm's minimum required after-tax return is 12%?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. pre algebra

    i am having trouble understanding how to do this math problem 4/3x=160
  2. calculus

    I am working on this problem and having some trouble. We're supposed to use partial fractions. The problem is: integral of dx / (x^6-1) . I got the values of A and D, but I am having trouble with the others. Help please!
  3. Math

    I need help with this problem: Write an equation that will give the slope of f(x) at every point: f(x)= -4x^2-17x+5.6. It seems basic but I am having trouble understanding what the problem is asking for.
  4. AED 200

    I asked a question about reliable sources yesterday. My problem is I am having trouble putting the ERIC site into APA format on my reference page. The city and state is not listed on the page. Could someone help please.
  5. accounting

    Can somebody please help me understand what this is wanting?
  6. Fin 200 Intro to Finance

    I am having trouble with week 1 assignment, to create a statement of cash flow. I am seriously confused on the directions and how to select which amounts to use and how to configure the increase and decreases of money, actually everything …
  7. fin 200

    I need help with the Comprehensive Problem: Adams Corporation on p. 119 (chapter 4)
  8. Math

    Am having trouble figuring out how to work this problem. We are currently studying about least common multiples. The problem is: Stacey jogs every third day and swims every fourth day. If she is jogging on Monday, what day of the week …
  9. composition

    In Weeks 9 and 10, you will develop an essay using definition as the rhetorical strategy. This week, you will complete your essay. Review the criteria for a definition essay. Continue with the essay you started in Week 9. Expand your …
  10. Physics

    In a two-dimensional tug-of-war, Alex, Betty, and Charles pull horizontally on an automobile tire at the angles shown in the picture. The tire remains stationary in spite of the three pulls. Alex pulls with force of magnitude 207 N, …

More Similar Questions