Question

An investment promises the following cash flow stream:

Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
---|---|---|---|---|---|

Cashflow | 1000 | 2000 | 3000 | 5000 |

The discount rate is 5%. What is the maximum price that you are willing to pay for this investment now?

Answer #1

Johnson’s controls has a project with a cost of $7,000 and
expected cash flow stream of $2000 at the end of year 1, $3000 at
the end of year 2, and $5000 at the end of year 3. at a discount
rate of 10.48%, what is the net present value of this
investment?

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

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 $

There are four projects to consider that have the following
net yearly cash flows.
0
1
2
3
4
5
6
P1
-3000
-500
1000
2000
4000
P2
-1000
-1000
500
0
400
500
2000
P3
-4000
2000
-3000
5000
7000
1000
P4
-2000
-4000
-1000
8000
1000
The MARR for this company is 12%.
a) You can select up to two projects to complete. Which
projects would you recommend?
b) Management has imposed a time limit of 4 years...

Uneven Cash Flow Stream
Find the present values of the following cash flow streams. The
appropriate interest rate is 11%. (Hint: It is fairly easy
to work this problem dealing with the individual cash flows.
However, if you have a financial calculator, read the section of
the manual that describes how to enter cash flows such as the ones
in this problem. This will take a little time, but the investment
will pay huge dividends throughout the course. Note that,...

Uneven Cash Flow Stream
Find the present values of the following cash flow streams. The
appropriate interest rate is 6%. (Hint: It is fairly easy
to work this problem dealing with the individual cash flows.
However, if you have a financial calculator, read the section of
the manual that describes how to enter cash flows such as the ones
in this problem. This will take a little time, but the investment
will pay huge dividends throughout the course. Note that,...

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?

You are analysing a capital investment project. You forecast the
following cash-flows:
year
0
1
2
3
4
5
cash flow
+10
+20
-5
-10
0
What is the maximum investment you are willing to make into this
project today if your required return is 15% per year (e.g. cost of
capital)
(Show positive number as an answer. Please round your answer
to the nearest full number. For example if your answer for
investment is 21.26, show 21 as...

An investment has the following cash flow
maturity (year) 0 1 2 3
cash flow (€) -500 140 132 324
A pereon whose opportunity-cost of capital is i = 6%, asks for a
financing of 200, to be repaid with two instalments,
with constant amortization quota, at times 1 and 2, the financing
rate is j = 7%. Find the APV for the person.

A project has the following cashflows.
t
Cash flow
0
$ (250,000)
1
41,000
2
48,000
3
63,000
4
79,000
5
88,000
6
64,000
7
41,000
options:
The project's cashflow turns positive
between year 4 and 5, to be precise it is 4.22.
The project's cashflow turns positive
between year 5 and 6, to be precise it is 5.12.
The project's cashflow turns positive
between year 3 and 4, to be precise it...

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