Find the present value of the following cash flow: receive $7 every year for 28years with the first payment being 9 years from now. Assume an effective annual rate of 5.1%
Q: what is the future value of cash flow of ¢2,000.00 for the first month and a monthly rise of 0.1%…
A: 1st deposit =2000 Increase per month = 0.1% = 0.001 Increase Factor(r) = 1+0.001 = 1.001 Number of…
Q: What is the present value of end-of-year cash flows of $1,000 per year, with the first cash flow…
A: Present value (PV) is the worth of amount today that is expected to be received in future at…
Q: The present worth of the cash flow with payments in the second through seventh year for amount of…
A: Present value of cash flow in nth year [PV of CFn] = CF x (1 + r)-n Where, CF = cash flow of the…
Q: Hadji wants to find the equivalent annual cash flow for 9 years with interest rate of 15% compounded…
A: Equivalent Annual Cash Flow = PV x r / [1 - {1 / (1 + r)^n}]
Q: You receive $100 today, $200 in one year, and $300 in two years. If you deposit these cash flows…
A: Formula FV = CF0*(1+R)3+CF1*(1+R)2+CF2*(1+R)1 Where FV - Value of account after 3 years R - Interest…
Q: Compute the future value of $536 invested every year if the appropriate rate is 11.2% and you invest…
A: Annual deposit (A) = $536 r = 11.2% n = 4 years
Q: Calculate the equivalent lump-sum(total) receipt now for the following cash flows: You invest $3,000…
A: Equivalent lump sum receipt: It is the equivalent value of the lump sum received at a different…
Q: If you are calculating the present value of this cash flow under semiannual (twice per year)…
A: Future Value: It represents the value of annual cash flows or the sum of money at a later/future…
Q: What is the future value of a stream of $800 cash receipts, each to be received at the beginning of…
A: Annual cash receipts (C) = $ 800 Number of annual cash receipts (n) = 4 Annual interest rate (r) =…
Q: A loan of $60,000 is due 10 years from today. The borrower wants to make annual payments at the end…
A: Firstly, calculating PMT with annual compounding:
Q: What is the present value of a perpetuity stream of cash flows that pays P1,000 at the end of year…
A: present value of a perpetuity stream of cash flows = cash flows at end of year 1/(Discount rate -…
Q: Find the present value and future value in the given situation: Monthly payments of 3000 for 4…
A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…
Q: You buy a new piece of equipment for $16,230, and you receive a cash inflow of $2,500 per year for…
A: The internal rate of return (IRR) is the interest rate received for investment with payments and…
Q: What amount must be set aside now to generate payments of $30,000 at the beginning of each year for…
A: Annual payment (P) = $30,000 Interest rate (r) = 5.52% Period (n) = 10 Years
Q: You buy a new piece of equipment for $11,778, and receive a cash inflow of $2,000 per year for 10…
A: Initial Investment is $11,778 Cash Inflow per year = $2,000 Time Period = 10 Years
Q: What is the present value of a perpetual stream of cash flows that pays $5, 000 at the end of year…
A: Cashflows = $5,000 Growth rate = 4% Discount rate = 11%
Q: A cash-flow series is increasing geometrically at the rate of 8% per year. The initial payment at…
A: Computation:
Q: Find the present worth of a future payment of P200,000 to be made in 15 years with an interest of…
A: Future worth of a present value With present worth (PW), effective annual rate (r) and time (n), the…
Q: Consider a cash flow that lasts for ten years. the initial value A occurs at the third year,…
A: The time value of money becomes an important factor for capital budgeting decisions. It is an idea…
Q: What is the present value of the following cash-flow stream if the interest rate is 12%? You receive…
A: In the given question we require to calculate the present value of the stream of cashflows.
Q: What is the present value of a perpetual stream of cash flows that pays $5, 000 at the end of year…
A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…
Q: Draw a cash flow diagram
A: Cash flows in different periods are not comparable; therefore, we use the concept of time value of…
Q: Find the lump sum deposited today that will yield the same total amount as payments of $15,000 at…
A: Answer - Formula for Lump Sum deposited Today - P = R ( 1 - (1+i)-n/ i)
Q: Consider an EOY geometric sequence of cash flows in which the first payment made was P2,000. This is…
A: Annuity refers to a constant stream of payments made at regular intervals for a defined period. The…
Q: Find the present worth of a future payment of 100,000 to be made in 10 years with an interest of 12%…
A: The concept of TVM states that money inherently has an interest-earning capacity which makes an…
Q: An investment costs $465 and is expected to produce cash flows of $100 at the endof each of the next…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of year…
A: Year 1 cash flow (CF1) = $80,000 Growth rate (g) = 0.06 Interest rate (r) = 0.10 Present value = ?
Q: Calculate the equivalent lump-sum(total) receipt now for the following cash flows: You invest $3,000…
A: In this we have to find the present value of all cash flow=
Q: An investment project has annual cash inflows of $2,800, $3,700, $: for the next four years,…
A: The payback period method is a very important technique used in capital budgeting for assessing…
Q: Find the amount at the end of two years and seven months if 6,000.00 is invested at 9% compounded…
A: Investment = 6000 Interest Rate = 9% Compounded Quarterly Number of compounding periods = 4
Q: Consider two streams of cash flows, A and B. Stream A is expected to have three cash [5] flows at…
A: In order to decide which streams of income would be preferable, one need to calculate the present…
Q: Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account…
A: Future Value is the value of current investments at a certain future date at the assumed…
Q: Calculate the future value of an investment of $3,500, after one year, if it is deposited in a…
A: Where, A=future valueP=present valuer=rate of interestn=time period.
Q: An investment offers to pay you $300 per quarter for 10 years. If the annual rate is 11% with…
A: Calculate the present value as follows:
Q: What is the future value of a series of $4,500 annual payments received at the end of each of the…
A: Annuity refers to series of equalized payments that are either made start or end of specific…
Q: What is the present value of end-of-year cash flows of 1000 per year, with the first cash flow…
A: Present value is the sum of discounted future cashflow
Q: Determine the monthly savings is needed monthly to save $200,000 at the end of ten years if the…
A: Future value (FV) = $ 200,000 Interest rate = 10% Number of compounding per year (m) = 4 Monthly…
Q: What is the present value of end-of-year cashflows of $1,000 per year, with the first cashflow…
A: Present value is the value today of future cash flows discounted to present terms using a specified…
Q: Hadji wants to find the equivalent annual cash flow for 9 years with interest rate of 15% compounded…
A: Year 1 payment (P1) = $2800 Every payment after this increases by $120 n = 9 years r = 15% Let A =…
Q: Consider two streams of cash flows, A and B. Stream A is expected to have three cash flows at the…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: present value
A: Present Value is the computed amount today of either a single sum amount or a series of payments to…
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- Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is the NPV using 8% as the discount rate?Find the present value of a cash flow stream which pays $5000 at the end of every year for 15 years at an interest rate of 9%?An investment offers to pay you $300 per quarter for 10 years. If the annual rate is 11% with quarterly compounding, then what is the present value of these cash flows?
- What is the present value of a stream of $800 cash payments, each to be made at the beginning of the next four years, with 10% annual compounding interest rate?What is the present value of a perpetuity stream of cash flows that pays P1,000 at the end of year one, and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 8%?We expect a perpetuity of quarterly cash flows of $80,000 starting in 1 quarter. Given a discount rate of 5.75% per year compounded semi-annually, what is the present value of this perpetuity?
- An investment product promises semi-annual cashflows of $3,500 for the next 5 years. If the stated interest rate with monthly compounding is equal to 10%, what is the present value of the cashflows that the investment promises?A project has estimated annual net cash flows of $80,000 for seven years and is estimated to cost $325,000. Assume a minimum acceptable rate of return of 6%. Use the Present Value of an Annuity of $1 at Compound Interest table below.Find the present worth of a future payment of P200,000 to be made in 15 years with an interest of 15% compounded quarterly on the first 10 years and 12% compounded semi-annually on the next 5 years. Draw a cash flow diagram
- What is the future value of a stream of $800 cash receipts, each to be received at the beginning of the next four years, with 10% annual compounding interest rate?What is the present value of the following cash-flow stream if the interest rate is 12%? You receive 100 at the end of first year, 800 at the end of second year, and 460 at the end of third year. (12% is annual interest rate and given annual compounding) (Please round your answer to the nearest whole number)A project has estimated annual net cash flows of $7,500 for ten years and is estimated to cost $42,500. Assume a minimum acceptable rate of return of 6%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Determine (1) the net present value of the project and (2) the present value index. If required, use the minus sign to indicate a negative net present value. Net present value of the project (round to the nearest dollar) $fill in the blank 1 Present value index (rounded to two decimal places) fill in the blank 2