Ross Corporate Finance 9th Edition Concise Edition English Original Book Post-Course Part Chapter AnswersCH5 111318192011 To find the PV of a lump sum we usePV = FV 1 + rtPV = $1000000 11080 = $

number of compounding periods per year) and double the number of periods. So, we have:r = 8% / 2 = 4%t = 20 years x 2 = 40 periodsFV = $10,000(1 + 0.04)40 = $49,387.4724. To answer this question, we need to find the PV of a perpetuity. We can use the formula:PV = C / rPV = $1,000 / 0.08 = $12,500So, the present value of the perpetuity is $12,500.27. To answer this question, we need to find the effective annual rate (EAR) of a loan with a stated annual rate (SAR) of 7.5% and monthly compounding. We can use the formula:EAR = (1 + SAR / m)m - 1EAR = (1 + 0.075 / 12)12 - 1 = 7.71%So, the effective annual rate is 7.71%.42. To answer this question, we need to find the monthly payment required to pay off a loan with a present value of $20,000, an annual interest rate of 9%, and a term of 5 years. We can use the formula for the present value of an annuity:PMT = PV / [(1 - (1 + r)-t) / r]r = 9% / 12 = 0.75% per montht = 5 years x 12 months per year = 60 monthsPV = $20,000PMT = $20,000 / [(1 - (1 + 0.0075)-60) / 0.0075]PMT = $416.71So, the monthly payment required to pay off the loan is $416.71.58. To answer this question, we need to find the PV of an uneven cash flow stream. We can use the formula:PV = CF1 / (1 + r) + CF2 / (1 + r)2 + ... + CFn / (1 + r)nCF1 = $10,000CF2 = $20,000CF3 = $30,000r = 10%PV = $10,000 / (1 + 0.10) + $20,000 / (1 + 0.10)2 + $30,000 / (1 + 0.10)3PV = $50,070.91So, the present value of the cash flow stream is $50,070.91