Morgan ZimmerMGF301 Assignment 1UB person number 501060561. UB IT name: morganzi Stock 1: Carnival Corporation (CCL)Stock 2: The Hershey Company (HSY)Stock 3: Macy’s (M)2.A. PV =FV(1+r)t PV =$ 300,000(1+.05)5PV = $235057.85B. FV =C(1+r)tFV =$ 300,000(1+0.05)30FV=$1296582.713. A.i. PV = initial investment PV = $67,500ii. PV =FV(1+r)t PV 1=$ 10,000(1+.0625)1 PV1 = $9411.76 PV 2=$ 12,500(1+.0625)2 PV2 = $11072.66PV 3=$ 15,000(1+.0625)3 PV3 = $12505.60 PV 4=$ 17,500(1+.0625)4 PV4 =$13731.64 PV 5=$ 20,000(1+.0625)5 PV5= $14770.16 Total PV =$61491.83iii. PV=(0.0625/12,83,-920)+920PV=$62,788.41B. r = about 0.032 for option i. and option ii. to have the same present value4. A. PV =FV(1+r)tPV =$ 1,000,000(1+.048)40PV =$153302.31 PV =C(1r−1r(1+r)t) $ 153302.31=C(1.048−1.048(1+.048)20) C=$3193744.92B. PV=(0.048/12,240,-1000000) PV=$154,093,302.95 EAR = [(1+(r/m))^m]-1EAR=0.0495. A. PV =Cr∗1(1+r)t PV =$ 36,000.0575∗1(1+.0575)30 PV = 36000.0575∗0.186891142 PV= $6,728.09B. PV =cr∗1(1+r)tPV=(0.0575,360,-3000)PV= $52,173.91$52,173.91-$6,728.09=Answer changes by
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