valuation of assets Using the information provided in the tollowing table, ind t

Question

valuation of assets Using the information provided in the tollowing table, ind the value of each asset The val" of Asset Aiss?(Ror The value of Asset B is S Rund to the nearest (cert) The vakue of Asset Cis Rond to te nearest cent) The value ofAsset D is S? Round to the nearest cent) The vale d'Asset E is S? (Roundtorhe nearest cent ) Data Table d to the nearest cent) Cick on the icon located on the top right corner of the data table below in order to copy its contents into a spreadsheet) Cash low TndaYear- Asset Ap ropnate required return Amount 3 7,000 7000 7,000 rough o 3 400 36,000 D 1 throughS S 1,700 8 000 s 2000 3,000 5,000 7,000 4000 1.000 Print Done Enter your answer in each of the anaver boxes

Explanation / Answer

Value of Asset A = 7,000 * PVAF(18%,3y) = 7,000 * 2.174 = 15,218

Value of Asset B = 400 / 0.16 = 2,500

Value of Asset C = 36,000 * PVF(15%,5y) = 36,000 * 0.497 = 17,892

Asset D Required Rate = 12% End of the Year Amount PVF PV of Cash flows 1 1700 0.893 1518 2 1700 0.797 1355 3 1700 0.712 1210 4 1700 0.636 1080 5 1700 0.567 965 6 -8000 0.507 -4053 Value of Asset D = 2,075

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