Question

Consider a series of end-of-period CFs spanning 2042-2057, which decrease at a 1% rate each period....

Consider a series of end-of-period CFs spanning 2042-2057, which decrease at a 1% rate each period. The amount of the first CF in the series is $143. The interest rate is 3.3%. What is the equivalent value of this series at the beginning of 2042? (answer: $1,641.26) Can you show either by hand or excel?

Homework Answers

Answer #1

Answer is Equivalent amount is $1641.26

The explanation is as follows:

YEAR CASHFLOW PVF @ 3.3% PRESENT VALUE
2042 143.00 0.968 138.43
2043 141.57 0.937 132.67
2044 140.15 0.907 127.15
2045 138.75 0.878 121.85
2046 137.37 0.850 116.78
2047 135.99 0.823 111.92
2048 134.63 0.797 107.26
2049 133.29 0.771 102.80
2050 131.95 0.747 98.52
2051 130.63 0.723 94.42
2052 129.33 0.700 90.49
2053 128.03 0.677 86.72
2054 126.75 0.656 83.11
2055 125.49 0.635 79.65
2056 124.23 0.614 76.34
2057 122.99 0.595 73.16
Equivalent amount of series 1641.26
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
Consider a series of end-of-period CFs spanning 2042-2056, which increase at a 1.3% rate each period....
Consider a series of end-of-period CFs spanning 2042-2056, which increase at a 1.3% rate each period. The amount of the first CF in the series is $124. The interest rate is 3.8%. What is the equivalent uniform amount for a series of end-of-year CFs spanning the same time period? (answer: $134.73) How do you get this answer? Either by hand or excel
Consider a series of $115 end-of-period CFs spanning 2053-2057 and a $121 CF at the end...
Consider a series of $115 end-of-period CFs spanning 2053-2057 and a $121 CF at the end of 2042. The interest rate is 1.5%. What is the equivalent value of these CFs at the end of 2047? (answer: $640.90) Please show all work
Consider a series of end-of-period CFs spanning 2045-2056, which decrease by a fixed amount each period....
Consider a series of end-of-period CFs spanning 2045-2056, which decrease by a fixed amount each period. The amount of the first CF in the series is $1,097 and the decrement is $73. The interest rate is 2.6%. What is the equivalent value of this series at the beginning of 2045? (answer: $7,318.57)
Consider a series of end-of-period CFs spanning 2046-2055, which decrease by a fixed amount each period....
Consider a series of end-of-period CFs spanning 2046-2055, which decrease by a fixed amount each period. The amount of the first CF in the series is $71 and the decrement is $71. The interest rate is 3.5%. What is the equivalent value of this series at the end of 2055?
Consider a series of $110 end-of-period CFs spanning 2051-2056 and a $126 CF at the beginning...
Consider a series of $110 end-of-period CFs spanning 2051-2056 and a $126 CF at the beginning of 2023. The interest rate is 2.1%. What is the equivalent value of these CFs at the end of 2042?
Consider a series of $125 end-of-period CFs spanning 2050-2056 and a $124 CF at the end...
Consider a series of $125 end-of-period CFs spanning 2050-2056 and a $124 CF at the end of 2066. The interest rate is 2%. What is the equivalent value of these CFs at the end of 2061?
. Consider a series of $71 end-of-period CFs spanning 2050-2055 and a $103 CF at the...
. Consider a series of $71 end-of-period CFs spanning 2050-2055 and a $103 CF at the beg of 2066. The interest rate is 2.4%. What is the equivalent value of these CFs at the beg of 2046? (answer: $420.97 Please show all work
a) Consider a $762 CF at the beginning of 2042. The interest rate is 2.8%. What...
a) Consider a $762 CF at the beginning of 2042. The interest rate is 2.8%. What is the equivalent uniform amount for a series of end-of-year CFs spanning 2052-2056? (answer: $218.05) b)Consider a $760 CF at the beginning of 2063. The interest rate is 3.9%. What is the equivalent uniform amount for a series of end-of-year CFs spanning 2050-2055? (answer: $87.88) How do you work this out my hand to get the answer?
Consider two CFs: a negative one at the beginning of Year 2022 in the amount of...
Consider two CFs: a negative one at the beginning of Year 2022 in the amount of $104 and a negative one at the beginning of Year 2042 in the amount of $129. What would be the equivalent value of these CFs at the beginning of Year 2034 at an interest rate of 5.5%? The answer is -271.78 Please show all work
Consider a two-period, two-state world. Let the current stock price be 45 and the risk-free rate...
Consider a two-period, two-state world. Let the current stock price be 45 and the risk-free rate be 5 percent. Each period the stock price can go either up by 10 percent or down by 10 percent. A call option expiring at the end of the second period has an exercise price of 40. 1. Find the stock price sequence. 2. Determine the possible prices of the call at expiration. 3. Find the possible prices of the call at the end...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT