Question

The present value of the following cash flow stream is $7151.29 when discounted at 11 percent annually. What is the value of the missing cash flow?

year cashflow

1 $2000

2 ?

3 $1750

4 $1250

Answer #1

Let X be the Missing Value.

PV of CFs = Sum [ CF * PVF (r5, n) ]

Year |
CF |
PVF @11% |
Disc CF |

1 | $ 2,000.00 | 0.900901 | $ 1,801.80 |

2 | X | 0.811622 | 0.8116X |

3 | $ 1,750.00 | 0.731191 | $ 1,279.58 |

4 | $ 1,250.00 | 0.658731 | $ 823.41 |

PV of CFs |
$3904.80 +
0.8116X |

Thus 7151.29 = 3904.80 + 0.8116X

0.8116X = 7151.29 - 3904.80

= 3246.49

X = 3246.49 / 0.8116

= $ 4000

Missing CF is $ 4000

The present value of the following cash flow stream is $9,200
when discounted at 10 percent annually.
What is the value of the missing cash flow?
Year Cash Flow
1 $1,300
2 ??
3 1,950
4 2,640

The present value of the following cash flow stream is $6,910
when discounted at 7 percent annually. Year Cash Flow 1 $1,250 2 ?
3 1,550 4 2,150 What is the value of the missing cash flow?
Multiple Choice $1,960.00 $3,247.27 $3,182.32 $2,836.29
$3,312.21

What is the present value of the following cash flow
stream? The appropriate interest rate is 10 percent,
compounded annually.
0 1 2 3 4
______________________________________________________________
0 100 300 300 -50

What is the present value of the following cash-flow stream if
the interest rate is 4%? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
Year
Cash Flow
1
$
170
2
370
3
270
Present value

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

6. What is the present value of the following uneven cash flow
stream? The appropriate interest rate is 5.6%, compounded annually.
Note that the final cash flow represents a project where there may
be reclamation or other “end of project” costs which are greater
than any final income and/or salvage value. Please show work.
0-------------1--------------2--------------3---------------4
1. 365
2. -200
3. 325
4. 575

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

Consider the following cash flows and calculate the Present
Value of this cash flow stream if the interest rate is
3%. Please include two decimals in your answer and a
negative if appropriate
Year 0: $-210
Year 1: $172
Year 2: $0
Year 3: $0
Year 4: $228

Consider the following cash flows and calculate the Present
Value of this cash flow stream if the interest rate is
5%. Please include two decimals in your answer and a
negative if appropriate
Year 0: $113
Year 1: $-379
Year 2: $0
Year 3: $0
Year 4: $492

Consider the following cash flows and calculate the Present
Value of this cash flow stream if the interest rate is
6%. Please include two decimals in your answer and a
negative if appropriate
Year 0: $-327
Year 1: $190
Year 2: $0
Year 3: $0
Year 4: $162
Answer =

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