
HCA 420 HCA420 Workshop Three 3.5 Dropbox Chapters 9&10 Problems Solution
HCA 420 Workshop Three 3.5 Problems from Chapters 9 and 10 Dropbox (Indiana)
9.4 Find the following values assuming a regular, or ordinary, annuity:
9.7 Consider another uneven cash flow stream:
Year Cash Flow
0 $2,000
1 2,000
2 0
3 1,500
4 2,500
5 4,000
9.9 Assume that you just won $35 million in the Florida lottery, and hence the state will pay
you 20 annual payments of $1.75 million each beginning immediately. If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 20-year U.S. Treasury bonds) is
6 percent, what is the present value of your winnings?
10.1 Consider the following probability distribution of returns estimated for a proposed project that involves a new ultrasound machine:
10.5 Several years ago, the Value Line Investment Survey reported the following market betas for the stocks of selected healthcare providers: