Question

- for the below Cash flow, find the total Present value using 10% interest rate. years...

- for the below Cash flow, find the total Present value using 10% interest rate.

years $ cost
0 13,321
1                  -  
2                  -  
3 1,230
4 1,230
5 1,230
6 3,866

Homework Answers

Answer #1

Rate of Interest = 10%

Present value is calclated as: [Cash Flow / (1 + Rate of Interest)^Year]

Present value of cash flow of year 0 =[13,321 / (1 + 0.1)^0] = 13,321

Present value of cash flow of year 3 =[1,230 / (1 + 0.1)^3] = 924.12

Present value of cash flow of year 4 =[1,230 / (1 + 0.1)^4] = 840.11

Present value of cash flow of year 5 =[1,230 / (1 + 0.1)^5] = 763.73

Present value of cash flow of year 6 =[3,866 / (1 + 0.1)^6] = 2,182.26

Year Cash Flow Present Value
0 13321 13321
1 - -
2 - -
3 1230 924.12
4 1230 840.11
5 1230 763.73
6 3866 2182.26
18031.21

Sum of Present wale is 18,031.21

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
- for the below Cash flow, find the total Present value using 10% interest rate. years...
- for the below Cash flow, find the total Present value using 10% interest rate. years $ cost 0 13,321 1                  -   2                  -   3 1,230 4 1,230 5 1,230 6 3,866
Please solve each question. I will give likes. For the below Cash Flow find PW using...
Please solve each question. I will give likes. For the below Cash Flow find PW using 10% interest rate. years $ cost 0 4,636 1                  -   2                  -   3      3,000.00 4      3,100.00 5      3,200.00 6      3,300.00 7      3,400.00 8      3,500.00 For the below Cash Flow, find the total PW value using 10% interest rate years cost $ 0 4,915 1      1,000.00 2                  -   3 3,376 4                  -   5      4,000.00 6      1,000.00...
- Find the Cash Flow PW using 10% interest rate for the following: 1) years $...
- Find the Cash Flow PW using 10% interest rate for the following: 1) years $ cost 0 2,975 1                  -   2                  -   3      3,000.00 4      3,100.00 5      3,200.00 6      3,300.00 7      3,400.00 8      3,500.00 2) years $ cost 0 2,975 1                  -   2                  -   3      3,000.00 4      3,100.00 5      3,200.00 6      3,300.00 7      3,400.00 8      3,500.00
Calculate the Present Value of the cash flow shown below. Interest rate is: 6.50% per year,...
Calculate the Present Value of the cash flow shown below. Interest rate is: 6.50% per year, compounded annually $0 $0 $745 $0 $3,140 $0 $4,000 $0 $0 $2,275 $0 year 0 1 2 3 4 5 6 7 8 9 10 $0 $0 -$4,470 $0 $0 $0 $0 -$3,020 -$3,020 $0 $0
What is the present value of the following cash flow stream?  The appropriate interest rate is 10...
What is the present value of the following cash flow stream?  The appropriate interest rate is 10 percent, compounded annually. 0                      1                      2                      3                      4 ______________________________________________________________ 0                      100                  300                  300                  -50
The present value of the following annual cash flows is $9,920.77. The cash flow at t=2...
The present value of the following annual cash flows is $9,920.77. The cash flow at t=2 is missing. Using an interest rate of 10%, find the value of the missing cash flow. Annual cash flows: $0 at time 0 and time 1, $4,000 at time 3, and $6,000 at time 4. $2500 $2750 $3000 $3250
The present value of the following annual cash flows is $9,920.77. The cash flow at t=2...
The present value of the following annual cash flows is $9,920.77. The cash flow at t=2 is missing. Using an interest rate of 10%, find the value of the missing cash flow. Annual cash flows: $0 at time 0 and time 1, $4,000 at time 3, and $6,000 at time 4. $2500 $2750 $3000 $3250
Below is a table for the present value of $1 at Compound interest. Year 6% 10%...
Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables...
Below is a table for the present value of $1 at Compound interest. Year 6% 10%...
Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables...
Below is a table for the present value of $1 at compound interest. Year 6% 10%...
Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT