Question

an investment offers the following annual cash flows: end of years 1 thru 10, $5,000 years...

an investment offers the following annual cash flows: end of years 1 thru 10, $5,000 years 11 thru 20, $7500 if your required return on investment is 6%, what is it worth today?

answer is $67,624.19

please show how this is worked out, preferrably on excel

Homework Answers

Answer #1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An investment promises to pay $5,000 at the end of each year for the next 7...
An investment promises to pay $5,000 at the end of each year for the next 7 years, $9,000 at the end of each year for years 8 through 20, and $3,000 at the end of each year for years 21 through 35. If you require a 10% annual rate of return on this investment, what is the present value of these cash flows at a 10% annual rate of return? Show time value of money equation and work.
You are considering an investment which has the following cash flows. If you require a 10%             return,...
You are considering an investment which has the following cash flows. If you require a 10%             return, what is the NPV?             Year                   0               1               2                3                4               5                6             Cash flow    -$30,000    $10,000     $5,000       $5,000       $7,500    $10,000      $20,000 please show in excel
An investment is expected to generate annual cash flows forever. The first annual cash flow is...
An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate annually. We know that the cash flow expected in 4 years from today is expected to be $7500 and the cash flow expected in 5 years from today is expected to be $9000. What is the cash flow expected to be in 2 years from today?
An investment costs $465 and is expected to produce cash flows of $100 at the end...
An investment costs $465 and is expected to produce cash flows of $100 at the end of each of the next 4 years, then an extra lump sum payment of $200 at the end of the fourth year. What is the expected rate of return on this investment? Please show me how to work this problem on Excel. Thank you.
An investment offers $10,000 at the end of each year for ten years. a. If you...
An investment offers $10,000 at the end of each year for ten years. a. If you can earn 10 percent annually, what is this investment worth today? b. If you do not spend the annual payment but invest it at 10 percent, how much will you have after the ten years have lapsed?
A project that provides annual cash flows of $12,500 for 8 years costs $65,000 today. At...
A project that provides annual cash flows of $12,500 for 8 years costs $65,000 today. At what discount rate would you be indifferent between accepting the project or rejecting it? If the required rate of return is 9%, what is the profitability index of this project?    Please show work and calculation don't do it on excel
Calculating NPV and IRR. A project that provides annual cash flows of $1,710 for 10 years...
Calculating NPV and IRR. A project that provides annual cash flows of $1,710 for 10 years costs $7,560 today. 1. The NPV is $__________if the required rate of return is 10%. 2. The NPV is $__________if the required rate of return is 24%. 3. At what discount rate would you be indifferent between accepting the project and rejecting it? I would be indifferent at _____% 4. Using a finnancial calculator please show and explain work.
An investment will pay you $5,000 two years from today and another $5,000 six years from...
An investment will pay you $5,000 two years from today and another $5,000 six years from today. If you require a 9% annual rate of return the investment, how much is the investment worth to you today? a. $6,954.60 b. $7,189.74 c. $7,974.78 d. $7,698.90 e. $7,437.54 You plan to retire 30 years from today. You wish to have enough in your retirement account to provide you with $50,000 at the end of each year for 20 years after you...
An investment offers $10,000 at the end of each year for ten years. (a) If you...
An investment offers $10,000 at the end of each year for ten years. (a) If you can earn 5 percent annually, what is this investment worth today? (b) If you do not spend the annual payment but invest it at 5 percent, how much will you have after the ten years have lapsed?
Investment X offers to pay you $5,000 per year with the first payment being received today....
Investment X offers to pay you $5,000 per year with the first payment being received today. If you secure an 11% interest rate, how many years will it take you to reach $100,000 in savings? Please do not round, show the answer in decimal form.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT