You pay $1,000 today for the following series of monthly cash flows: 150 0 200 15 300 300 0 100 100 200 -100 What was the NPV of your decision to make this deal? ( Answer is close to $200). *Assume nominal annual discount rate of 12%. * (Edited to add discount rate.)
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- What is the equivalent uniform annual payment for the following cash flows if the interest rate is 10%? Populate the following table and compute the equivalent uniform annual payment. Show all work and provide an explanation. Do not use Excel. [Hint: This problem is a mix of annuity, gradient, and a single future cash flows.] ΕΟΥ Cash Flows Annuity Gradient Future 1 $2,000 2 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $14,000 IN 3 st 4 5 6 7. 8 9 10What is the present value of the following stream of cash flows if the discount rate is 9%? Year 1-5: $14,000 inflow Years 6-20: $23,000 inflow (Use the present value tables in your course packet for any present value calculations. Round your final answer to the nearest dollar.)Investment X offers to pay you $7,500 per year for 9 years, whereas Investment Y offers to pay you $10, 200 per year for 5 years. a. If the discount rate is 6 percent, what is the present value of these cash flows? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. If the discount rate is 22 percent, what is the present value of these cash flows? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. a. Present value of Investment X at 6 percent Present value of Investment Y at 6 percent b. Present value of Investment X at 22 percent Present value of Investment Y at 22 percent
- Find the net present value (NPV) of the following cash flows when the discount rate is 7% pa: $60,000 immediately (t=0); $80,000 in 1.5 years (t=1.5); and $100,000 in 4.5 years (t=4.5). The net present value of these payments is: Select one: ○ a. $157,458.96 b. $206,031.23 c. $216,838.09 d. $240,000 e. $279,357.32Determine the value of W on the right-hand side of the accompanying diagram that makes the two cash-flow diagrams equivalent when /=9% per year. Q $1,150 30 1 2 End of Year $1,150 3 4 5 $1,150 W Click the icon to view the interest and annuity table for discrete compounding when i=9% per year. End of Year The equivalent amount, "W", of the cashflows provided in the diagram is $ 1739. (Round to the nearest dollar.) W OUWhat lump sum would have to be deposited today into an account bearing interest of 10% per year to provide withdrawals of $1000 at 8,9,10,11 years from today? (provide cash flow diagram with solution) please provide the cash flow diagram and explain your answer.
- Consider a loan of $10,000 and the following pattern of cash flows. a. What is the interest rate that makes the present worth equal to $0.00? b. Using the interest rate determined in part (a), and leaving the −$10,000 at year 0 in place, determine the equal annual incomes that are equivalent to the gradient series in years 1, 2, 3, and 4?For the given cash flow, if the equivalent uniform annual payments is $2000 and the interest rate is 4% per year. End of 2 3 Year Cost 2A ZA+30 ZA+50 ZA+90 ZA+120 ZA+150 2A+180 ZA+210 2A+240 Determine the amount of (A) ? Determine the equivalent present value?What is the equivalent uniform annual payment for the following cash flows if the interest rate is 10%? Populate the following table and compute the equivalent uniform annual payment. Show all work and provide an explanation. Do not use Excel. [Hint: This problem is a mix of annuity, gradient, and a single future cash flows.] ΕΟΥ 1 2 3 4 5 6 7 8 9 10 Cash Flows $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $14,000 Annuity Gradient Future
- Investment X offers to pay you $4,700 per year for 9 years, whereas Investment Y offers to pay you $6,400 per year for 5 years. a. If the discount rate is 8 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. If the discount rate is 20 percent, what is the present value of these cash flows?Assume the appropriate discount rate for the following cash flows is 10.2 percent. Year Cash Flow 1 $2,100 2 2,000 3 1,700 4 1,500 What is the present value of the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)What single payment at the beginning of year 2 is equivalent to an equal annual series of payments of $8000 beginning at the end of year 3 and ending at the end of year 8? Use i = 10 % compounded annually. (using cash flow diagram is recommended)