Question

Different cash flow. Given the following cash inflow at the end of each year, what is the future value of this cash flow at 4 %, 8 %, and 17% interest rates at the end of year 7? Year 1: $12,000 Year 2: $22,000 Year 3: $30,000 Years 4 through 6: $0 Year 7: $150,000

Future value. A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of $8,000 for 8 years. The loan rate is 5%. At the end of 8 years, he believes that he can sell the land for $60,000. If he is correct on the future price, did he make a wise investment?

Answer #1

future value of cashflows @4% at the end of 7 year ,required equation will be

=12000(1.04)^6 +22000(1.04)^5 +30000(1.04)^4 + 150000

=227045.94

future value of cashflow @8% at the end of 7 year

= 1200091.08)^6 +22000(1.08)^5 +30000(1.08)^4 + 150000

=242182.3784

future value of cashflows@17% at the end of 7 year

= 12000(1.17)^6 + 22000(1.17)^5 +30000(1.17)^4 +150000

=285232.4435

(b) as he take the loan with the end year payments the present value of the of the stream @5% will be

=8000*(1-(1.05)^-8/0.05)

=51705.70 this is the loan amount for the land and he sold the land for 60000 after 8 years this is not a wise investment as we find the future value of the loans amount after 8 years and it will be 51705.70(1.05)^8=76392.86 but he sold the land for 60000

given the following cash inflow at the end of each
year, what is the future value of this cash flow at 6%,8% and 15%
interest rates at the end of year
7.
year 1 $12,000. year 2.
$21,000. year 3. $30,000. years 4
through 6: $0. year
7. $150,000

Future value. A speculator has purchased land along the
southern Oregon coast. He has taken a loan with the end-of-year
payments of $7,400 for 9 years. The loan rate is 4%. At the end
of 9 years, he believes that he can sell the land for $70,000. If
he is correct on the future price, did he make a wise investment?
What is the future value of the loan 9 years from now?
$___ (Round to the nearest cent.)
If...

give n the following cash inflow at the end of each
year, what is the future value of this cash flow at 6%, 11% and 14%
interest rates at the end of year 7?
year
1.
$13,000
year
2.
$18,000
year
3.
$31,000
year 4 through 6. $0
year
7.
$140,000

Different cash
flow.
Given the cash inflow in the following table,
LOADING...
, what is the present value of this cash flow at
5%,
13%,
and
24%
discount
rates?
What is the present value of this cash flow at
5%
discount rate?
(Round to the nearest cent.)What is the present value of this
cash flow at
13%
discount rate?
(Round to the nearest cent.)What is the present value of this
cash flow at
24%
discount rate?
Present
value.
A smooth-talking...

Nominal interest rate=10% compounded semi annually. Today
invested 100,000 and expected future cash flow as following:
7 month later inflow:8,000
18 month later inflow: 20,000
15years later inflow: 60,000
28 years later inflow: 90,000
Base on NPV, should we do it or not?
Base on IRR, should we do it or not?

A project generates a cash flow of $497,400.00 per year (end of
year cash flows). If the project can last 15.00 more years, what is
its value TODAY of the remaining cash flows if the cost of capital
is 8.00%?
A real estate investment has the following expected cash
flows:
Year
Cash Flows
1
$13,600.00
2
$27,200.00
3
$44,000.00
4
$42,700.00
The discount rate is 10.00 percent. What is the investment's
future value at the end of the fourth year?

Find the future value (as of the end of Year 4) of the following
cash flow stream if the discount rate is 6.02%: CF1 = 70, CF2 = 60,
CF3 = 43, CF4 = 26. The cash flows are received at the end of each
year. Round to the nearest $0.01 (e.g., if your answer is $275.386,
record it as 275.39).

Using the following data:
Initial Investment = $10,000,000
Cash Inflow – Year 1 = $3,000,000
Cash Inflow – Year 2 = $3,500,000
Cash Inflow – Year 3 = $4,000,000
Cash Inflow – Year 4 = $4,900,000
Cash Inflow – Year 5 = $5,000,000
Calculate Internal Rate of Return
Calculate Net Present Value (assuming a required return of
8%)
Please show work so I can recreate in excel

An investment requires an outlay of $100,000 today. Cash inflow
from the investment are expected to be $40,000 per year at the end
of year 4, 5, 6, 7, and 8. You require a 20% rate of return on this
type of investment. Answer the following questions and explain the
formula for each question:
First draw the time line and specify the cash outflow and
inflow for each period.
Calculate the net present value.
Calculate the Internal rate of return...

Find the future value (as of the end of Year 4) of the following
cash flow stream if the discount rate is 4.08%: CF1 = 76, CF2 = 61,
CF3 = 35, CF4 = 20. The cash flows are received at the end of each
year.
Round to the nearest $0.01 (e.g., if your answer is $275.386,
record it as 275.39).
Blank 1. Calculate the answer by read surrounding text.

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