For Example: Find the present value of a series of cash flows occurred in different years when the required rate of return is 10% PERIOD FUTURE CASH FLOWS JD 80,000 2 JD 70,000 3 JD 50,000 4 JD 30,000
Q: An arithmetic cash flow gradient series equals $500 in year 1, $600 in year 2, and amounts…
A: Computation:
Q: An arithmetic cash flow gradient series equals $800 in year 1, $900 in year 2, and amounts…
A: A cash flow series is a series of equal payments, that is, in a cash flow series there are regular…
Q: Consider the following cash flow profile: Suppose the positive-valued cash flows are now replaced by…
A: Cash flows are the amount of cash and cash equivalents inflow and outflow of the company in a…
Q: For the cash flows shown, determine the equivalent future worth in year 10 at an interest rate of…
A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…
Q: For the given cash flow of geometric gradient, if A= $8,000 , the present value, P is closest to: A…
A: We need to compute the present value of the given cash flows series.
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A: Given:
Q: Find the present worth of the following estimated cash flows. As indicated, some are expressed in…
A: Nominal interest rate is the rate of return which an investment yield to the investor. When the…
Q: Determine the expected present worth of the following cash flow series if each series may be…
A: Expected present worth can be defined as the mean or average value of the given variables which…
Q: The present worth in year 10 of a decreasing geometric gradient series was calculated using…
A: a
Q: 1. Consider the following cash flow payments: An income of $2000 at the end of year 2, an income of…
A: Cash flow diagrams visually represents cash inflows and outflows through a diagram, where any…
Q: a. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1…
A: Present value (PV) refers to the current value of a future sum of money or cash flows computed at a…
Q: In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams…
A: To calculate equivalent cash flows at end of year 5, present value of cash flows will be calculate…
Q: In a geometric sequence of annual cash flows starting at the EOY zero, the value of A0 is $1,304.35…
A: A company's cash flows equals the cash coming into the business minus the cash going out.
Q: What is the present value of the following cash flow stream at a rate of 8.0%? Years: 3 Cash flows:…
A: Discount rate = 8.0% Year Cash flow 0 750 1 2450 2 3175 3 2741.68
Q: For another example of the use of arithmetic gradient formulas, suppose that we have cash-flows that…
A: The present worth using the arithmetic gradient factor is the net value of the cash flows with…
Q: • For the cash flow series shown below, a) Find the present worth b) Find the equivalent annual…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Let i = 10% per year, find the present worth in year 0 for the cash flows diagram shown below: i =…
A: Interest Rate = 10% Cash Flows: Year Cash Flow 1 50 2 50 3 70 4 90 5 170 6 130 7…
Q: Let i = 10% per year, find the present worth in year 0 for the cash flows diagram shown below: i =…
A: Present Value of cash flow is the cash flow of a certain year multiplied by the discounting factor…
Q: Construct a cash flow diagram for the following cash flows: $10,000 outflow at time zero, $3000 per…
A: Outflow at time 0= ($10,000) Inflow in years 1 through 5= $3000 per year Time= 5 years Rate= 5%…
Q: For the following incremental cash flow series, use a spreadsheet to find all rate of return values…
A:
Q: Consider the following cash flows over a 5-year period: −$100,000 @ t = 0;$35,000 @ t = 1; $45,000 @…
A: Net cash flows and cumulative cash flows Year Net Cash Flow Cumulative Cash Flow 0 -100,000…
Q: Consider the following EOY geometric sequence of cash flows and determine the P, A, and F equivalent…
A: The present value of the cash flow is the current worth of the cash flow at a certain rate of…
Q: Consider the following cash flow profile: Using a gradient series factor, determine the present…
A: Present value is the discounted value of a single cash flow or a series of cash flow. It states that…
Q: Apply the ERR method with ∈=12% per year to the following series of cash flows. Is there a single,…
A: ERR is the economic rate of return which measures the rate of profitability of a revenue-generating…
Q: The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is…
A: The future value of a cash flow series depends on the interest rate and time period for which it has…
Q: Find the annual worth (AW) that is equivalent to the following cash flow diagram, if the interest…
A: Given information: Interest rate: 8% Year Cash flows 0 0 1 0 2 2000 3 3000 4 4000 5…
Q: The investment shown in the following figure has an annual equivalent worthof $200 at i = 8%.…
A: annual worth formula: annual worth=npv ×r1-11+rn
Q: Draw a cash flow diagram given the following data and determine the values of P and F. Length of…
A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…
Q: For the cash flow shown below. Find the external rate of return (EROR) using rate of return approach…
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Q: Use the ERR method with ∈=8% per year to solve for a unique rate of return for the following…
A: Descartes’ rule of sign is used to determine the maximum number of real numbers (positive) solutions…
Q: Find the equivalent value at time 0 of the cash flow in the following diagram assuming 1000 1000 0 1…
A:
Q: A cash flow series is described by the following: $10,000 + $250(t), where t is the number of…
A: Present Worth means the current value of the future stream of cash flows at a specific rate of…
Q: Compute the rate of return on an investment having the following cash flow. Year Cash Flow -S 1000…
A: To Find: Rate of return:
Q: Determine the rate of return per year for the cash flow series shown below. Year Cash Flow, $…
A: IRR is the rate at which the NPV is zero.
Q: quivalent worth for the annual cash flow series at an interest rate of 10% per year compounded…
A: The given problem can be solved using PV function in excel. PV function computes present worth for…
Q: Determine the rate of return per year for the cash flow series shown below. Year Cash Flow, $…
A: Internal rate of return is one of the modern techniques of capital budgeting that take into…
Q: In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams…
A: Rate ie. i =12% We have to find the Present Value of 1st diagram and then we have to calculate the…
Q: Determine the value ofW on the right-hand side of the accompanying diagram (see the given Figure )…
A: Present Worth(PW) is value of an proposal at current point of time. It is computed by discounting…
Q: Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B…
A: NPV or net present value of any investment is calculated in order to know the present value of…
Q: The FASB concepts statement relating to cash flow information introduces the concept of expected…
A: Present Value: Given a certain rate of return, the present value (PV) of a future sum of money or…
Q: Consider the following EOY geometric sequence of cash flows and determine the P, A, and F equivalent…
A: Geometric gradient is a series of flow of cash which keeps fluctuating by a perpetual percentage…
Q: Given the cash flow diagram below, evaluate the "X" value using an interest rate of 8%. Year |1 2 3…
A: Present value of cash flow is equal to the initial investment of the project. From that unknown…
Q: In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams…
A: We have to calculate the future value of 1st four cash flows till the end of 5 the year and the…
Q: An arithmetic cash flow gradient series equals $350 in year 1, $450 in year 2, and amounts…
A: The cash flows that decrease or increase by the same amount is known as arithmetic cash flows.
Q: Consider the following cash flow: Year Cash Flow -$ 29,800 13,900 15,000 11,400 1 2 3 a). What is…
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Q: Find the present value of the stream of cash flows shown in the follwing tables. Assume that the…
A: Opportunity cost = 15%
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- Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %10. Cash Flow Year 0 1 2 3 4 5 6 7 Select one: a.0.245007 b.0.19667 c.0.168017 d.0.204146 e.0.274516 f.0.181262 g.0.228861 h.0.264278 -3000 3000 6000 -1000 2000 4000 -5000 8000What is the NPV of the following cash flows if the required rate of return is 0.09? Year 0 1 2 3 4 CF -6,816 3,577 3,505 2,732 3,757For the cash flows shown, determine: (a) the number of possible i* values (b) the i* value displayed by the IRR function (c) the external rate of return using the MIRR method if ii = 18% per year and ib = 10% per year. Year 0 1 2 3 4 Revenues, $ 0 25,000 19,000 4000 18,000 Costs, $ −6000 −30,000 −7000 −6000 −12,000
- What is the NPV of the following cash flows if the required rate of return is 0.08? Year 0 1 2 3 4 CF -9,433 1,172 2,471 4,078 831 Enter the answer with 2 decimals (e.g. 1000.23).Apply the ERR method with ∈=12% per year to the following series of cash flows. Is there a single, unique IRR for these cash flows? What is the maximum number of IRRs suggested by Nordstrom’s criterion?Solve, a. Calculate the IRR for each of the three cash-flow diagrams that follow. Use EOY zero for (i) and EOY four for (ii) and (iii) as the reference points in time. What can you conclude about “reference year shift” and “proportionality” issues of the IRR method? b. Calculate the PW at MARR=10 % per year at EOY zero for (i) and (ii) and EOY four for (ii) and (iii). How do the IRR and PW methods compare?
- Consider the series of cash flows depicted by the CFD given in the attached Figure. Using an interest rate of 6% per interest period, what is the present worth equivalent of cash flows?What is the present value of the following cash flow stream at a rate of 6.25%? YEAR O=0 YEAR 1= P75 YEAR 2= P225 YEAR 3=PO YEAR 4=P300 * 411.57 433.23 456.03 480.03 505.30For the cash flows shown, determine: (a) the number of possible /* values (b) the value displayed by the IRR function (c) the external rate of return using the MIRR method if i;= 18% per year and ib = 10% per year. Year Revenue, $ 0 1 2 3 4 о 25,000 19,000 4,000 28,000 Cost, $ -6,000 -30,000 -7,000 -6,000 -12,000 The number of i* values according to the rule of signs test is (Click to select) ✓ According to the cumulative cash flow sign test, /* value is (Click to select) The IRR function displays i* value as %. The external rate of return according to the MIRR method is %.
- Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %19. Year Cash Flow 0 -3000 1 2000 2 4000 3 -1000 4 3000 5 4000 6 -5000 7 9000 Select one: a. 0.2988 b. 0.2638 c. 0.2565 d. 0.3073 e. 0.2783 f. 0.3491Find the internal rate of return (IRR) for the following cash flows. Enter your answer as a percent and include at least two decimal points, e.g., 8.35 for 8.35 %, not 0.08. Year Cash Flow 0 750 1 200 2 375 3 250 4 100 5 75Determine the rate of return for the cash flows shown in the diagram. Use trial and error (start with two trials with 5% and 10% interest rates) and then use interpolation (or more trials) to approximate the result. Roh?? S7000 1- ? Year 590 s90 s90 sz00 sz00 sz00 $3000