(a) For each of the following payment schemes, choose which is better at an interest rate of 5%
i. Receiving $7,000 right now, or $750 per year for 12 years, starting next year.
ii. Receiving $10,000 in 10 years, or receiving $1,000 per year for 5 years, starting now.
(b) For each of the following pairs of options, find the interest rate which would make you indifferent between them.
i. Receiving $1,000 now, or $1,402.55 in five years.
ii. Receiving $166,666.67 now, or $15,000 per year in perpetuity starting next year.

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,500 are payable at the beginning of each year. each is a finance lease for the lessee. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) situation 1 2 3 4 lease term (years) 3 3 3 3 asset’s useful life (years) 3 4 4 6 lessor’s implicit rate (known by lessee) 14 % 14 % 14 % 14 % residual value: guaranteed by lessee 0 $ 5,000 $ 2,500 0 unguaranteed 0 0 $ 2,500 $ 5,000 purchase option: after (years) none 2 3 3 exercise price n/a $ 7,500 $ 1,500 $ 3,500 reasonably certain? n/a no no yes

Which of these is an example of innovation?

You get your monthly banking statement and notice that the number is lower than expected. you decide that you should create a cash flow statement. why are cash flow statements useful in managing money? what are the steps in creating a statement?