Question

Calculate the present value of the given stream of cash flows using the given discount rate....

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

Homework Answers

Answer #1

Net present value can be solved using a financial calculator. The steps to solve on the financial calculator:

  • Press the CF button.
  • CF0= -$0. Since there is no initial cash flow for this question.
  • Cash flow for each year should be entered.
  • Press Enter and down arrow after inputting each cash flow.
  • After entering the last cash flow cash flow, press the NPV button and enter the discount rate of 5%.
  • Press enter after that. Press the down arrow and CPT buttons to get the net present value.  

Net present value at 5% discount rate is $23,547.76.

In case of any query, kindly comment on the solution.

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
What is the present value of the following cash flow stream at a discount rate of...
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
Present value of an uneven stream of payments ) You are given three investment alternatives to...
Present value of an uneven stream of payments ) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year End of Year   A   B   C 1   $3,000   $1,000   $5,000 2   4,000   1,000   5,000 3   5,000   1,000   (5,000) 4   -6,000   1,000   (5,000) 5   6,000   5,000   15,000 What is the present value of each of these three investments if the appropriate discount rate is 14percent?
what is the present value of the following cash flow stream at a rate of 10.0%?...
what is the present value of the following cash flow stream at a rate of 10.0%? 1 -1,500 2 $3,000 3 $4,500 4 $5,000
. Calculate the IRR and NPV for the following cash flows. Assume a 15% discount rate...
. Calculate the IRR and NPV for the following cash flows. Assume a 15% discount rate Year Project 1 Cash flow Project 2 Cash flow 0 -$20,000 -$20,000 1 1,000 12,000 2 3,000 15,000 3 4,000 3,000 4 12,000 4,000 5 15,000 1,000 9. If your tenant pays you rent of $24,000 a year for 10 years, what is the present value of the series of payments discounted at 10% annually? 10. You are going to invest $300,000 in a...
You are given three investment alternatives to analyze. The cash flows from these three investments are...
You are given three investment alternatives to analyze. The cash flows from these three investments are as​ follows: End of Year   A   B   C 1   $1,000   $1,000   $5,000 2   2,000   1,000   5,000 3   3,000   1,000   (5,000) 4   -4,000   1,000   (5,000) 5   4,000   3,000   15,000 What is the present value of each of these three investments if the appropriate discount rate is 14 percent? a. What is the present value of investment A at an annual discount rate of 14​percent?
Calculate the present value of the following cash flows given a discount rate of 12%: Year...
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%.
You are given three investment alternatives to analyze. The cash flows from these three investments are...
You are given three investment alternatives to analyze. The cash flows from these three investments are as​ follows: Investment End of Year: #1: A. $1,000 B. $3,000 C. ​$5,000  # 2: A. $2,000 B. $3,000 C. $5,000  #3: A. $3,000 B. $3,000 C. ( $5,000 )   #4. A. ( $4,000 ) B. $3,000 C. ( $5,000 )   #5. A. $4,000 B. $5,000 C. $15,000. What is the present value of each of these three investments if the appropriate discount rate...
Calculate the present value of the following cash flows given a discount rate of 12%: Year...
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
What is the present value of a perpetual stream of cash flows that pays $5,500 at...
What is the present value of a perpetual stream of cash flows that pays $5,500 at the end of the year one and the annual cash flows grow at a rate of 2% per year indefinitely, if the appropriate discount rate is 13%? What if the appropriate discount rate is 11%?
10. What is the future value of the following cash flows if the discount rate is...
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
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT