Question

Find the future value of the following cash flows if the discount rate is 5.875%: Years 1 - 7 15,000 Years 8– 12 25,000 Years 13 - 20 4300

Answer #1

We use the formula:

A=P(1+r/100)^n

where

A=future value

P=present value

r=rate of interest

n=time period.

Hence

A=$15000*(1.05875)^19+$15000*(1.05875)^18+$15000*(1.05875)^17+...........+$15000*(1.05875)^13+25000*(1.05875)^12+25000*(1.05875)^11+25000*(1.05875)^10+25000*(1.05875)^9+25000*(1.05875)^8+4300*(1.05875)^7+4300*(1.05875)^6+..............+4300*(1.05875)^1+4300

=$15000*[(1.05875)^19+(1.05875)^18+..........+(1.05875)^13]+25000*[(1.05875)^12+(1.05875)^11+(1.05875)^10+(1.05875)^9+(1.05875)^8]+4300*[(1.05875)^7+(1.05875)^6+..............+(1.05875)^1+1]

=(15000*17.56385491)+(25000*8.878072157)+(4300*9.853169123)

=**$527,778.25(Approx).**

10. What is the future value of the following cash flows if the
discount rate is 8%? What is the future value if the discount rate
is 5%? (Future value at year 4).
Cash Flow
Year 1 $12,000
Year 2 $1,000
Year 3 $2,000
Year 4 $5,500

What is the total future value in 40 years of the following cash
flows: $10,000 invested today, $25,000 invested in 6 years and 7
months, and $50,000 invested in 15 and 2 months? Use a discount
rate .9% monthly.

What is the total future value in 40 years of the following cash
flows: $10,000 invested today, $25,000 invested in 6 years and 7
months, and $50,000 invested in 15 and 2 months? Use a discount
rate .9% monthly.

Calculate the present value of the following cash flows given a
discount rate of 12%:
Year 1
Year 2
Year 3
Year 4
Cash Flows
$1,500
$8,500
$12,500
$11,000
Calculate the internal rate of return for a project that has
upfront costs of $7 million and cash flows of $2.5 million per year
for each of the next four years. The risk adjusted project discount
rate is 12%.

What is the total future value in 35 years of the following cash
flows: $11,000 invested today, $30,000 invested in 6 years and 7
months, and $45,000 invested in 15 years and 2 months? Use a
discount rate of .8% monthly.
Please show me how I would set this up on excel...What equations
would be used to solve each. Thank you!

Q1:
If the discount interest rate is 8%, the future value of a
stream of cash flows of $500 deposited into an account at the end
of each of the next 40 years, is closest to?
a. $23
b. $5,962
c. $6,439
d. $20,000
e. $129,528
Q2:
If the discount interest rate is 8%, the present value of a
stream of cash flows of $500 paid at the beginning of each of the
next 40 years, is closest to?
a....

Calculate the NPV for a project with the following cash flows.
The discount rate (weighted average cost of capital) is 7% and the
initial investment is $50,000.
Cash flow each year:
Year 1: $10,000
Year 2: $12,000
Year 3: $15,000
Year 4: $15,000
Year 5: $15,000
Answer: ___________________________ (12 pts)

11.a) Find the PV of the following stream of cash
flows, if the discount rate is 7%:
Years Cash
Flow
1-15 $ 12,000
16-35 $ 18,000
36-40 $ 20,000
b) Following up on the above stream, what would the
PV be if the 39th cash flow was missing?
c) What would the FV of part (a) be? At the same 7%
rate.
d) what would the FV be if the last...

What is the total future value of the following cash flows:
a.) $10,000 invested today for 20 years at an annual rate of
4.7%
b.) $25,000 invested for 6 years at 6%
c.) $50,000 invested for 15 years at 2.8%
d.) Which of the above is the best investment? Why?

Calculate the present value of the given stream of cash flows
using the given discount rate. The present value you find is
between $24,000 and $24,100.
time
cash flows
discount rate
0
5%
1
$1,000
2
$1,500
3
$2,000
4
$2,500
5
$3,000
6
$3,500
7
$4,000
8
$4,500
9
$5,000
10
$5,500

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 17 minutes ago

asked 19 minutes ago

asked 20 minutes ago

asked 23 minutes ago

asked 47 minutes ago

asked 48 minutes ago

asked 49 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago