Question

Question 1:

Sea Masters Co. has identified an investment project with the
following cash flows for the next 5 years. If the discount rate is
6.7 percent, the present value of these cash flows is $__________.
**Round it to two decimal places without the $ sign,**
e.g., **23456.34**

Year Cash
Flows

1
$21,000

2 35,000

3
44,000

4 53,000

5
77,000

Question 2:

The present value of the following cash flow stream is $6,561
when discounted at 12 percent annually. The value of the missing
cash flow is $_______ . (Do not include the dollar sign ($). Round
your answer to the **nearest whole dollar** amount.
(e.g., 32))

Year Cash Flow

1 $1,500

2 2,000

3 ?

4 2,500

Question 3:

Mary wants to retire in 36 years with $1 million in her
retirement account. To that end she decides to save money every
year in a savings plan that pays 9.4 percent annually. Her first
contribution will occur at the end of the year (one year from
today). She needs to save $__________ each year to the savings
plan. Round it to **two decimal places** and do not
include the $ sign, e.g., 1234.56.

Question 4:

Suppose an investment that pays $56,000 per year
**forever**. If the required return on this investment
is 10 percent, how much are you willing to pay for the investment
today? (Do not include the dollar sign ($), and round your answer
to two decimal places. (e.g., 123456.45)

Question 5:

Suppose you are going to receive $23,000 per year for 10 years
at the **end** of each year; thus you receive the
first payment **one year from today**. Compute the
present value of the cash flows if the appropriate interest rate is
12 percent. Round it two decimal places**,** and do
not include the $ sign, e.g., 123456.78.

Answer #2

**Question
1:**

This question would require the application of basic time value
of money function: FV = PV * (1 + r)^{n}

Now, for the series of cash flows:

PV = 19,681.35 + 30,742.50 + 36,220.92 + 40,890.10 + 55,676.08

**PV =
$183,210.95** ---> Answer

**Question
2:**

We will use the same time value of money function for this question as well:

6561 = 1,339.29 + 1,594.39 + CF_{3} + 1,588.80

**CF _{3}
= $2,038.50** ---> Answer

**Question
3:**

This requires application of FV of ordinary annuity, which is mathematically represented as:

P = $3,854.40 ---> Answer

**Question
4:**

This is an example of perpetuity.

PV of perpetuity = P/r = 56000/10% = $560,000 ---> Answer

**Question
5:**

PV of annuity is mathematically calculated as:

**PV =
$129,955.13** ---> Answer

answered by: anonymous

Rooster Co. has identified an investment project with the
following cash flows. Year Cash Flow 1 $ 970 2 760 3 1,430 4 1,790
Requirement 1: If the discount rate is 9 percent, what is the
present value of these cash flows? (Enter rounded answer as
directed, but do not use rounded numbers in intermediate
calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Present value $ Requirement 2: What is the present value at 17
percent? (Enter rounded...

Fuente, Inc., has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$1070
2
$1300
3
$1520
4
$2260
a.
If the discount rate is 8 percent, what is the future value of
these cash flows in Year 4? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
b.
If the discount rate is 11 percent, what is the future value of
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Fuente, Inc., has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$
1,090
2
1,320
3
1,540
4
2,280
a.
If the discount rate is 7 percent, what is the future value of
these cash flows in Year 4?(Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
b.
If the discount rate is 13 percent, what is the future value of
these cash flows in Year 4? (Do not...

McCann Co. has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$750
2
1,010
3
1,260
4
1,190
a.
If the discount rate is 9 percent, what is the present value of
these cash flows?
b.
What is the present value at 17 percent?
c.
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Question26of30Total26 of 30
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McCann Co. has identified an investment project with the
following cash flows. Year Cash Flow 1 $900 2 1,090 3 1,250 4 1,140
a. If the discount rate is 11 percent, what is the present value of
these cash flows? b. What is the present value at 17 percent? c.
What is the present value at 28 percent?

Huggins Co. has identified an investment project with the
following cash flows.
Year Cash Flow
1 $ 820
2 $1,130
3 $1,390
4 $1,525
If the discount rate is 10 percent, what is the present value of
these cash flows?
Present value $ 3765,26 What is the present value at 16
percent?
Present value $ 3279.42 What is the present value at 25
percent?
Present value $ 2715.52
*These are my answers I want to know if I got them...

McCann Co. has identified an investment project with the
following cash flows. Year & Cash Flow YR 1 - $800 YR 2 -
$1,090 YR 3 - $1,340 YR 4 - $1,180
a. If the discount rate is 11 percent, what is the present value
of these cash flows?
b. What is the present value at 19 percent?
c. What is the present value at 28 percent?

A project has the following cash flows:
Year
Cash Flow
0
$
72,500
1
–51,500
2
–28,000
What is the IRR for this project? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Internal rate of return
%
What is the NPV of this project if the required return is 6
percent? (A negative answer should be indicated by a minus
sign. Do not round intermediate calculations and round your...

Stoeller Co. has identified an investment project with the
following cash flows. If the discount rate is 7 percent, what is
the present value of these cash flows? What is the present value at
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Show ALL work
Year
Cash Flow
1
$375
2
$822
3
$555
4
$1,212

A project has the following cash flows: Year Cash Flow 0 $
68,500 1 –44,500 2 –31,200 what is the net present value of this
project if the required rate of return is 4 percent? (A negative
answer should be indicated by a minus sign. Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)

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