罗斯《公司财》英文习题答案DOCchap004.docVIP

Chapter 4: Net Present Value 4.1 a. $1,000 ( 1.0510 = $1,628.89 b. $1,000 ( 1.0710 = $1,967.15 c. $1,000 ( 1.0520 = $2,653.30 d. Interest compounds on the I nterest already earned. Therefore, the interest earned in part c, $1,653.30, is more than double the amount earned in part a, $628.89. 4.2 a. $1,000 / 1.17 = $513.16 b. $2,000 / 1.1 = $1,818.18 c. $500 / 1.18 = $233.25 4.3 You can make your decision by computing either the present value of the $2,000 that you can receive in ten years, or the future value of the $1,000 that you can receive now. Present value: $2,000 / 1.0810 = $926.39 Future value: $1,000 ( 1.0810 = $2,158.93 Either calculation indicates you should take the $1,000 now. 4.4 Since this bond has no interim coupon payments, its present value is simply the present value of the $1,000 that will be received in 25 years. Note: As will be discussed in the next chapter, the present value of the payments associated with a bond is the price of that bond. PV = $1,000 /1.125 = $92.30 4.5 PV = $1,500,000 / 1.0827 = $187,780.23 4.6 a. At a discount rate of zero, the future value and present value are always the same. Remember, FV = PV (1 + r) t. If r = 0, then the formula reduces to FV = PV. Therefore, the values of the options are $10,000 and $20,000, respectively. You should choose the second option. b. Option one: $10,000 / 1.1 = $9,090.91 Option two: $20,000 / 1.15 = $12,418.43 Choose the second option. c. Option one: $10,000 / 1.2 = $8,333.33 Option two: $20,000 / 1.25 = $8,037.55 Choose the first option. d. You are indifferent at the rate that equates the PVs of the two alternatives. You know that rate must fall between 10% and 20% because the option you would choose differs at these rates. Let r be the discount rate that makes you indifferent between the options. $10,000 / (1 + r) = $20,000 / (1 + r)5 (1 + r)4 = $20,000 / $10,000 = 2 1 + r = 1.18921 r = 0.18921 = 18.921% 4.7