BMAL 530 Quiz 5

BMAL 530 Quiz 5 Liberty University

1. Given the following information, a required return of 8%, an initial investment of $45,000, and cash flows of $12,000; $20,000, $10,000, and $6,000 for years 1 through 4 respectively, should the investment be done?
2. Calculate the future value given the following information: present value = $500; number of periods = 4; interest rate of 5%.
3. Calculate the present value given the following information: future value = $800; number of periods = 5; interest rate of 10%.
4. Calculate break-even in units given the following information: sales per unit of $25, variable costs of $13, fixed costs of $5,000. Remember, you cannot have partial units, so you will need to round up if the answer is a decimal.
5. Calculate the present value of an annuity due given the following information: number of periods = 3, interest rate of 6%, and a payment of $200.
6. Calculate the present value given the following information: future value = $1,000; number of periods = 3; interest rate of 5%.
7. Calculate the degree of operating leverage given the following information: sales of $25,000; variable costs of $13,000; and operating income of $7,000 for year one.
8. Given the following information, with a required return of 5%, an initial investment of $45,000, and cash flows of $9,000; $8,000, $15,000, and $20,000 for years 1 through 4 respectively, should the investment be done?
9. Calculate the present value given the following information: future value = $2,500; number of periods = 2; interest rate of 15%.
10. Calculate break-even in dollars given the following information: sales per unit of $40, variable costs of $15, fixed costs of $15,000, and a desired profit of $20,000.