For the given cash flow of geometric gradient, if A= $8,000 , the present value, P is closest to: A Year 1 12 13 14 15 i= 12% Geometric grad ient g=15%

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: What is the present value of the following set of cash​ flows, discounted at 15.2% per​ year?…

A: Given:

Q: For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an…

A: The given problem can be solved using MIRR function in excel.

Q: What will be the profitability index if the initial cash outflow was $2,000,000 and the cash inflow…

A: Capital budgeting is referred as the process of decision making which is used by companies to…

Q: Can you estimate the annual rate of return to grow $5,000 to $20 million in 51 years?  Show cash…

A: The following information is provided.FV = 20,000,000PV = 5000n = 51 years Annual rate of return can…

Q: Yıl Nakit akışı 0 -1000 TL 1 +300 TL 3 +300 TL 4 +300 TL 5 +300 TL

A: Internal Rate of Return is the rate at which NPV of the Investment is zero. It is compared with MARR…

Q: Required: a. What are the operating cash flows in each year? b. What are the total cash flows in…

A: Calculation of operating cash flow and total cash flows 1 to 5 years Particulars Year 1 Year 2…

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: Use the cash flow diagram below to calculate the present amount, which equivalent to all the cash…

A: Present Value(PV) is current value of amount that is due to paid or received in future that us…

Q: For the following incremental cash flow series, what is the maximum number of i* values accord- ing…

A: A project may have multiple IRRs if there are variation in cash inflows and outflows. If there are…

Q: For Example: Find the present value of a series of cash flows occurred in different years when the…

A: Present value is a concept that is used to calculate the current value of a future amount of money…

Q: Assume that an investment of $1,000 produces a future cash flow of $1,000. The discount factor for…

A: Investment  =$1000 Future Cash flow= $1000 Discount Factor = 0.80 NPV is the present value of future…

Q: Find the size of B in the following cash flow diagram if the interest is 8% per year. $130 1 H 2…

A: Data given: Rate=8% Arithmetic gradient from year 1 to 5= - $20

Q: Calculate the future equivalent at the end of 2012, at 25% per year, of the following series of cash…

A: Interest rate (r) = 25% Cashflow in year 2008 (CF1) = $1000 CF2 = $1000 - $100 = $900 CF3 = $1000 -…

Q: For the cash flows shown in the diagram, determine the value of x that will make the future worth in…

A: Future value of Annuity formula is    Future value of first 5 years of Annuity x , at end of 5…

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: 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: 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: Determine the present equivalent value of the cash-flow diagram shown below P = ? $5,000 $3500 8% iz…

A: The worth of the money changes according to time. Therefore, the time value of money shows the worth…

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: For the arithmatic gradient of cash flow given below, if G= $150 , the value at year 24(V2

A: 'G' refers to the amount by which cash flows increases every year.

Q: Given: Base amount = $500, gradient = -$100, i = 10%, n = 3. For the given values, determine the…

A: NPV can be calculated by following function in excel =NPV(rate,value1,[value2],…) + Initial…

Q: An arithmetic cash flow gradient series equals $850 in year 1. $950 in year 2. and amounts…

A: The present worth method is used to determine whether an investment project should be undertaken or…

Q: Find the uniform annual equivalent for the following cash flow diagram if 10%. Use the appropriate…

A: UNIFORM ANNUAL EQUIVALENT FORMULA: EUAC=r×NPV1-1+r-n where, r = discount rate n = no of years

Q: For a given cash flow diagram, if the interest rate i=10% , and A=$600, the F value is closest to:…

A: Future value of the annuity "A" of $600 for 5 years and "P" of $4000 at year 0 needs to be…

Q: First draw a cash flow diagram for the cash flow series shown below. Then write an expression (e.g.,…

A: a) Cash flow diagram is as follows:

Q: Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF -$80 1 $22 2 $22 3 $22…

A: The question is based on the concept of calculation of External  rate of return (ERR). ERR is a…

Q: For the cash flow shown below. Find the external rate of return (EROR) using rate of return approach…

A: Cash Flow Statement is a part of the Financial Statement of a company. It literally means 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: Find the value of the unknown quantity Z in the following shown diagram, such that the equivalent…

A: continuous compounding formula for present value of annuity: PVA=A×1-e-rter-1 where, r=rate t=time…

Q: a given cash flow diagram, if the interest rate i=10% , and A=$600, th F=? A Years 2 i=10 %

A: The given series represents an annuity. An annuity is a series of uniform cash flows over a period…

Q: Determine the value of W on the right-hand side of the accompanying diagram that makes the two…

A: Present Value: It is the present worth over the period of time of the cash flows discounted.…

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: For the cash flows shown in the diagram, determine the value of x and 2x that will make the future…

A: Interest rate = 10% per year Formula sheet: Factor Values are calculated as:

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: For the arithmatic gradient of cash flow given below, if G= $550 , the value at year 23(V23) is:…

A: Value at year 23 = ? Interest Rate = 5% First Cash Flow = 1800 G = 550 N = 23

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: Find the value of the unknown quantity in the cash flow diagram to establish equivalence of cash…

A: A uniform gradient is a cash-flow series which either increases or decreases uniformly.  In the cash…

Q: What is the profitability index of an investment with cash flows in years 0 thru 4 of -340, 120,…

A: Profitability Index - It is obtained by dividing the present value of future cash inflows by the…

Q: Assuming a 1-year, money market account investment at 2.51 percent (APY), a 1.1% inflation rate, a…

A: After tax rate of return will be calculated to get the exact return a person earn from investment…

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: For the cash flow given below, if i= 14% , the future value, F is closest to: F=? $ 4000 우 to 6 7 $…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Consider the following cash flow: Year Cash Flow -$ 29,800 13,900 15,000 11,400 1 2 3 a). What is…

A: Calculation of profitability index: Answer: Profitability index at 9% rate is 1.15 Profitability…

Q: . What is the present value of the following set of cash flows, discounted at 9.3% per year? Year 1…

A: Note: As per our guidelines, we can only answer one question at once. Since, you haven't…

Q: In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is…

A: Present value of future amount With interest or discount rate (i), period (n) and future value (FV),…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.