Given the following cash inflow at the end of each year what is the future value of this cash flow at 6%, 9% and 15% interest rate at the end of the seventh year? Year 1-$15,000 Year 2- $20,000 Year 3- $30,000 Years 4 through 6 - $0 Year 7- $150,000

Given the following cash inflow at the end of each year what is the future value of this cash flow at 6%, 9% and 15% interest rate at the end of the seventh year? Year 1-$15,000 Year 2- $20,000 Year 3- $30,000 Years 4 through 6 - $0 Year 7- $150,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 29P

See similar textbooks

Related questions

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: If interest is 5% compounded annually, calculate the present value of five year cash flows of $1,000…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: What is the future value of the following cash flows AT THE END OF YEAR 5, assuming a 6% interest…

A: Computation:

Q: determine the equivalent a. present worth at the beginning of the first year and b. uniform annual…

A: Net Present Value: It is the present worth of the annual cash flows and the initial cost of the…

Q: Calculate the future value of the following cash flow if it is invested @ 8% interest p.a. At the…

A: Future value can be calculated by multiplying cash flow with future value factor. Future value…

Q: The ABC Company has contracted to make the following payments: 500,000 immediately; 50,000 at the…

A: Year Cash flow PV 8% Present value 0 500,000 1.4693 734664 1 50,000 1.3604 68024.45 2…

Q: The cash flows shown in the table below occur every six months (bi-annually) and have a total…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: For the cash flows below, determine the amount in year 1, if the annual worth in years 1 through 9…

A: Annual Worth :— The annual worth is the net of all the benefits and costs incurred over a one-year…

Q: What is the future value at the end of year three of the following set of cash flows at an interest…

A: Given: Year Cash flows 1 $150 2 $300 3 $500

Q: e value at the end of the 8th year for the cash flow diagram shown below if i=4% ded annually. What…

A: Future Value is the value of cash flow at a future point in time. For calculating the future value…

Q: If interest is 7% compounded annually, calculate the present value of four year cash flows of…

A: Net present value is the sum of present value of future cashflows

Q: Draw a Cash Flow Diagram for P10,535 being loaned out at an interest rate of 12% per year over a…

A: Simple Interest per annum = Principle * Rate * Time = P10,535 * 12% * 1 = 1264.2 Cash flow diagram…

Q: What is the future value of the following cash flows AT THE END OF YEAR 5, assuming a 6% interest…

A: Interest rate is 6% Compounded annually To Find: Future value at the end of 5 years

Q: Find the present worth for the following cash flows at interest of 12% per year for the first 6…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: Suppose that a certain EOY (end of year) cash flows are expected to be $1,000 for the second year,…

A: End of year cash flows are those cash flows which are generated at the end of each year for an…

Q: What single payment at the beginning of year 2 is equivalent to an equal annual series of payments…

A: First payment is made at the end of Year 3 and will be made till Year 8. Hence, a total of 6 payment…

Q: öf thé nát is the present value of the followin annually? Beginning Cash Flow of Year 1 P2,500 2…

A: The present value of a future sum of money or stream of cash flows with a fixed rate of return is…

Q: Draw the necessary cash flow diagrams. Prob#1: Determine the present worth of an annual payment of…

A: Annual Payment = 4500 Inputs for Question 1. Beginning of year N = 12 years Interest Rate = 8%…

Q: What is the present value of a $400,000 cash flow to be received at the end of each of the next 10…

A: given, A=$400,000 r=9% n = 10

Q: Determine the present value of the following cash flows; P4,000 at the end of 4th month and every…

A: Given information= P4000 at the end of 4th month and every month thereafter till the 12th Month…

Q: Calculate the present value of the following cash flows discounted at 14 percent. a. $10,000…

A: Given information: Discounted interest rate is 14%, Future value $10,000, $5,000 and $4,000 received…

Q: annual cash flow f

A: Annual cash flows refer to the income of the company before deducting any interest, taxes,…

Q: the following schedule of payments; P15,000 immediately, P1,000 at the end of year one, P1,500 at…

A: Given, Payments P15,000 immediately. P1,000 at end of 1 year. P1,500 at end of year 2 P2,000 at end…

Q: Number of years to provide a given return In each of the following cases, determine the number of…

A: In this question we are given different cases of investment with different initial amounts, annual…

Q: Consider the accompanying cash flow diagram (please click the link below), which represents three…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Refer to the following table of cash flows: End of year 0 3 6 9 12 Cash Flow P25,000 P25,000…

A: Annual worth has equal value to future value when cash flows occur uniformly throughout life.

Q: Consider the following three cash flow series: End of Year Cash Flow Serles A Cash Flow Series B…

A: Calculate NPV by deducting present value of cash inflows and cash outflows of cash flow series B and…

Q: What is the present value of the following set of cash flows at an interest rate of 8% p.a.…

A: The concept of present value states that a sum of money today is worth more than the same sum in the…

Q: If the rate of earnings is 12% and the cash to be received in two years is $20,000, determine the…

A: Present value amount = Cash to be received in two years x present value of $1 at compound interest…

Q: What is the future value at the end of year three of the following set of cash flows at an interest…

A: Future Value = Present value * ( 1 + Interest rate)time period

Q: What is the future value of the following cash flows AT THE END OF YEAR 5 assuming a 6% interest…

A: We will use the following formula : F=P(1+r100)nWhere,F=future value P=present value r=rate of…

Q: Calculate the present value of the following cash flows discounted at 10 percent $12,000 received 5…

A: The provided information are: Future value (FV) = $12000 Interest rate (r) = 10% = 0.10 Number of…

Q: A certain end of year cash flows are expected to be P 7,000.00 at the end of the 3rd year, P…

A: Present value: Present value is the future cash flow at a specific discount rate. The time value…

Q: For the mixed stream of cash flows shown in the following table, 24600,20500,16400,8200,4100, ,…

A: We use the formula:A=P(1+r/100)^nwhereA=future valueP=present valuer=rate of interest=11%n=time…

Q: For the cash flows and interest rate shown below, determine the present worth 600 Cash flow in year…

A: Present worth is the value of investment currently. It is based on the interest rate and years for…

Q: Determine the present worth of the following cash flows based on an interest rate of 7.46% per year,…

A: ANSWER COMPUTATION OF PRESENT WORTH OF CASH FLOW END OF YEAR FUTURE CASH FLOW(1) PRESENT…

Q: For the cash flow series shown, determine the future worth in year 5 at an interest rate of 10% per…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: The present value of the following cash flow stream is $7,300 when discounted at 8 percent annually.…

A: Cash Flow means the movement of cash either into or outside of the business.

Q: Find the ROR of the following cash flow. MARR is 18% per year. Year 0 1 3 4 5 7 8 Cash -32,000…

A: The ROR is the interest rate that results in net present worth(NPW) of project zero. It can be…

Q: Need answers ASAP... If P100 is deposited in a savings account that pays 6% annual interest, what…

A: First of all, to find the future value, we will use the following formula: FV = PV * (1+r)n Where:…

Q: For the cash flows shown, determine the equivalent uniform annual worth in years 1 through 5 at an…

A: Given, Interest rate of 18% per year Year 1 2 3 4 5 Cash Flow $0 $0 $350,000…

Q: What is the present worth of cash flows that begin at $10,000 and increase at 5% per year for 10…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

100%

Given the following cash inflow at the end of each year what is the future value of this cash
flow at 6%, 9% and 15% interest rate at the end of the seventh year?
Year 1- $15,000
Year 2- $20,000
Year 3- $30,000
Years 4 through 6 - $0
Year 7- $150,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Given the following cash inflow at the end of each year what is the future value of this cash flow at 6%, 9% and 15% interest rate at the end of the seventh year? Year 1- $15,000 Year 2- $20,000 Year 3- $30,000 Years 4 through 6 - $O Year 7- $150,000
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? Group of answer choices a $4,084.08 b $3,712.80 c $2,789.48 d $2,535.89
What is the future value on December 31, Year 10, of 10 cash flows of $20,000 with the first cash payment made on December 31, Year 1, and interest at 10% being compounded annually?
At a 10% interest rate, what is the future sum at year 5, that is equivalent to the series of payments in the given cashflow: Year 1 Year 2 $1,400 $7,660 $7,616 $7,212 $1.320 $5,995 Year 3 $1,240 Year 4 $1,190 Year 5 $1,000
What is the future value of a stream of $800 cash receipts, each to be received at the end of the next four years, with 10% annual compounding interest rate? Group of answer choices a. $4,084.08 b. $3,712.80c. $2,789.48 d. $2,535.89
What is the future value on June 30, Year 11, of 20 cash flows of $15,000 with the first cash payment made on December 31, Year 1, and the annual interest rate of 10% being compounded semiannually?
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? Group of answer choices $4,084.08 $3,712.80 $2,789.48 $2,535.89
What is the future value on December 31, Year 11, of 20 cash flows of $15,000 with the first cash payment made on December 31, Year 1, and the annual interest rate of 10% being compounded semiannually?
What is the future value of the following cash flows AT THE END OF YEAR 5, assuming a 6% interest rate, compounded annually? End of Year Cash Flow 1 P2,500 2 2,750 3 3,000 4 3,250 3,500
A certain end of year cash flows are expected to be P 7,000.00 at the end of the 3rd year, P 9,000.00 at the end of the 4th year, P 11,000.00 at the end of the 5thyear, and P 13,000.00 at the end of the 6th year. Using 15% interest per year, determine the equivalent a. present worth at the beginning of the first year and b. uniform annual worth at the end of each year of the 6 years. Calculate it manually, not in excel. Show complete solution and formula used. Please don't type it. Write it in a paper so that it can understand well. Thank you!ANS. P 20,837.60, AND P 5,506.06
What is the present value of a stream of $800 cash payments, each to be made at the end of the next four years, with 10% annual compounding interest rate? Group of answer choices $4,084.08 $3,712.80 $2,789.48 $2,535.89
Problem No 3. Determine the present value of the following cash flows; P4,000 at the end of 4th month and every month thereafter for the first year. and P5,000 every year in perpetuity. Interest rate at 6% effective.