Question

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

Answer #1

We can use the present value table to find out the required present value.

Present value of cash flows = $1000 * PVIF (7%,1 year) + $2500 * PVIF (7%, 2 years) + $3500 * PVIF (7%, 3 years) + $4250 * PVIF(7%, 4 years) + $2500 * PVIF(7%, 5 years)

Now, we will use the present value table to find out the values of PVIF (present value interest factor) @7% for different years.

Present value of cash flows = ($1000 * 0.935) + ($2500 * 0.873) + ($3500 * 0.816) + ($4250 * 0.763) + ($2500*0.713)

Present value of cash flows = $935 + $2182.5 + $2856 + $3242.75 + $1782.5

Present value of cash flows = $10998.75

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

What is the present value of the following cash flow stream at rate
of 10.0% ?
Years: 0 1 2 3
CFs: $750. $2,4050. $3,175. $4,400

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 $

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).

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

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

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

Find the present values of the following cash flow streams at a
5% discount rate. 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?
Stream A $
Stream B $

A cash flow stream has the following with a discount rate of
7.56%.
Years: 0 1 2 3 CFs:
0: $452 1: $3,276 2: $2,973 3: $5,298
What is the present value?

Find the present values of the following cash flow streams at a
10% discount rate. 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? Stream A $ Stream B $

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