Question

Find the present value of the following cash flow stream if the discount rate is 6.97%: CF1 = 24, CF2 = 42, CF3 = 47, CF4 = 74. The cash flows are received at the end of each year. Round to the nearest $0.01 (e.g., if your answer is $175.386, record it as 175.39).

Answer #1

Rate = 6.97%

CF1 = 24; Discount Factor at Year 1 = 1/(1+6.97%) = 0.9348

PV of CF1 = 24 * 0.9348 = 22.44

CF2 = 42; Discount Factor at Year 2 = 1/(1+6.97%)^{2} =
0.8739

PV of CF2 = 0.8739 * 42 = 36.71

CF3 = 47; Discount Factor at Year 3 = 1/(1+6.97%)^{3} =
0.8170

PV of CF3 = 47 * 0.8170 = 38.40

CF4 = 74; Discount Factor at Year 4 = 1/(1+6.97%)^{4} =
0.7638

PV of CF4 = 74 * 0.7638 = 56.52

Adding the Present Values, we will get Present Value of the cashflow stream

**PV of All cashflows = 22.44 + 36.71 + 38.40 + 56.52 =
154.06**

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).

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.

Company has the following cash flow stream.
CF1 = 346
CF2 = 622
CF3 = 935
CF4 = 941
Cash flow is expected to be constant after year 4, with a growth
rate of 4%. If the WACC is 10%, what is the Value of Operations
(Firm Value) - Vop0 today?

Company has the following cash flow stream.
CF1 = 450
CF2 = 636
CF3 = 915
CF4 = 950
Cash flow is expected to be constant after year 4, with a growth
rate of 4%. The WACC is 10%. In addition, the company has 34
millions in cash, and 33 millions debt, with 58 millions shares
outstanding. What is the stock price, P0 , today?

Company has the following cash flow stream.
CF1 = 335
CF2 = 631
CF3 = 839
Cash flow is expected to be constant after year 3, with a growth
rate of 4%. The WACC is 10%. In addition, the company has 25
millions in cash, and 64 millions debt, with 11 millions shares
outstanding. What is the stock price, P0 , today?
cash flows are millions

What is the present value of the following cash flow stream at a
discount rate of 7%? $0 in year 0 $1,000 at the end of year 1
$2,500 at the end of year 2 $3,500 at the end of year 3 $4,250 at
the end of year 4 $2,500 at the end of year 5

UNEVEN CASH FLOW STREAM
Find the present values of the following cash flow streams at a
6% discount rate. Round your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$100
$450
$450
$450
$300
Stream B
$0
$300
$450
$450
$450
$100
Stream A $
Stream B $
What are the PVs of the streams at a 0% discount rate?
Stream A $
Stream B $

A. Find the present values of the following cash flow streams at
a 9% discount rate. Round your answers to the nearest cent.
Stream A
$0
$100
$350
$350
$350
$300
Stream B
$0
$300
$350
$350
$350
$100
Stream A $
Stream B $
B. What are the PVs of the streams at a 0% discount rate?
Stream A $
Stream B $

Find the present values of the following cash flow streams at
an 8% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$350
$350
$350
$300
Stream B
$0
$300
$350
$350
$350
$150
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $

Find the present values of the following cash flow streams at a
6% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$400
$400
$400
$250
Stream B
$0
$250
$400
$400
$400
$150
Stream A $
Stream B $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A $
Stream B $

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