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Autor:   •  December 8, 2013  •  Essay  •  510 Words (3 Pages)  •  995 Views

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When you have generated these 9 digits, paste them back onto themselves using the Paste Values option of the Paste command. Please note that the interest rate used in all questions represents an annual rate and all Euro figures are in whole Euros (not Euros and cents).

1. Acme plans to construct a new manufacturing facility in 14 years. If Acme estimates that today's cost of the new plant is SUN Euros (use all 9 digits) and annual inflation is A% (A = the first digit of SUN), how much will the manufacturing plant cost in 14 years? Give a detailed explanation on your calculations.

2. Acme has decided to establish a sinking fund for its outstanding preferred stock issue. SUN (use all 9 digits) represents the amount of the issue that will be retired in 26 years. At the beginning of each of these 26 years, Acme will deposit an equal amount into an account that earns B% (B = the second digit of SUN). What is the value of this periodic deposit? Give a detailed explanation on your calculations.

3. One of Acme's new projects will generate the following cash flows at the end of each of the stated years: year 2 = SUN digits 1-3; year 4 = SUN digits 4-6; year 7 = SUN digits 7-9. If these cash flows are discounted at 12%, what is the sum of their present values? Give a detailed explanation on your calculations.

4. Acme is assessing its employee pension fund. At the end of each of the next 25 years Acme will have to pay its retirees (use the first 4 digits of your SUN). If the fund is estimated to earn D% (D = the fourth digit of SUN), how much does Acme need to have set aside today to ensure that it can meet its future obligations? (At the end of the 25th year, the balance should be drawn down to zero.) Give a detailed explanation on your calculations.

5. As part of a new labor contract, Acme has agreed to make a one-time contribution of Euros 1,000,000 to the construction of a new physical fitness facility for its employees. This

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