Question

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

Answer #1

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

. 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...

1)
Rasputin, Inc., has identified an investment project with the
following cash flows. If the discount rate is 8 percent, what is
the future value of these cash flows in Year 4? What is the future
value at a discount rate of 11 percent? At 24 percent?
Year
Cash Flow
1
$ 900
2
1,000
3
1,100
4
1,200

(a) What is the future value of the following unequal cash flows
using 9% interest rate?
YEAR
1
2
3
4
5
CASH FLOW
$600
$800
$500
$400
$900
(b) What would be an annuity payment (PMT) that would give the
same future value
using the same interest rate and same
number of years?
(c) What is the present value of the following unequal cash
flows using
7.5% interest rate?
YEAR
1
2
3
4
CASH FLOW
$950 ...

What is the net present value of the following set of cash flows
at a discount rate of 10 percent? Time Period Cash Flow 0 -$16,000
1 4,500 2 8,500 3 12,000 Group of answer choices $4,131 $2,783
$9,000

Havana, Inc., has identiﬁed an investment project with the
following cash ﬂows. If the discount rate is 8 percent for the
first 2 years and 4% for the years after year 2, what is the future
value of these cash ﬂows in Year 4? What is the future value of the
cash flows in year 10? What is the present value of the cash
flows?
Year
Cash Flow
1
$1,075
2
$1,235
3
$1,510
4
$1,965

Find the future value of the following cash flows if the
discount rate is 5.875%: Years 1 - 7 15,000 Years 8– 12 25,000
Years 13 - 20 4300

What is the present value of the following cash flows, given an
appropriate discount rate of 3.98% (to the nearest penny)?
Year 1
$3,593
Year 2
$2,157
Year 3
$7,824
Year 4
$36,542
Year 5
6,369

Calculate the NPV for a project with the following cash flows.
The discount rate (weighted average cost of capital) is 7% and the
initial investment is $50,000.
Cash flow each year:
Year 1: $10,000
Year 2: $12,000
Year 3: $15,000
Year 4: $15,000
Year 5: $15,000
Answer: ___________________________ (12 pts)

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

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