IF POSSIBLE SHOW CALCULATIONS USING A FINANCIAL CALCULATOR 16 The Value of an as
ID: 2771813 • Letter: I
Question
IF POSSIBLE SHOW CALCULATIONS USING A FINANCIAL CALCULATOR
16 The Value of an asset is
a. whatever a professional appraiser determines is appropriate
b. what the highest bidder is willing to pay for it
c. the current market price
d the discounted value of all expected cash flows
e none of the above
17 Stan Kunbar is interested in investing in a project that is expected to pay $5,000 every ear, for the next fifteen (15)
years. Using a discound rate of 9.25%, what is the present value of this project.
18 $50,000 depoisted in an account earning 3.25% compounded daily. Calculate the future value
19 Following are the historical returns for Cool Hill Ski Resort (where the snow is smooth as silk!)
Year A
2011 - 12.0%
2012 - 8.0%
2013 -12.0%
2014 -16.0%
2015 - 7.5%
What is the expected return for 2016 (average) and standard deviation (population) for this Cool Hill
A Average=
B Standard Deviation (population)=
Explanation / Answer
16)
In case of operating asset used for production:
Discounted value of all expected cash flows
In case of fixed asset:
Current market price
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