Question
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 14percent?
Homework Answers
Answer #1
Present Value of Cash Flows = 
r = 14% OR 0.14
Present Value of Cash Flows A = 
= 
= 4150.19613593
Present Value of Cash Flows B =
= 
= 4471.81829754
Present Value of Cash Flows C =
= 
= 9688.57355207
NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.
Not the answer you're looking for?
Similar Questions
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...
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
$3,000
$1,000
$4,000
2
4000
1000
4000
3
5000
1000
(4,000)
4
-6000
1000
(4,000)
5
6000
4000
14000
a. What is the present value of investment A at an annual
discount rate of 9 percent? $____(Round to the nearest
cent.)
b. What is the present value of investment B at an annual
discount rate...
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?
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
10,000
10,000
2
10,000
3
10,000
4
10,000
5
10,000
10,000
6
10,000
50,000
7
10,000
8
10,000
9
10,000
10
10,000
10,000
Assuming an annual discount rate of 20 percent, find the
present value of each investment.
Present value of annuities and complex cash flows) You are given three investment alternatives to analyze....
Present value of annuities and complex cash flows)
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
Assuming an annual discount rate of 20 % find the present value
of each investment.
Investment Alternatives
End of Year
A
B
C
1
$
10,000
$
10,000
2
10,000
3
10,000
4
10,000
5
10,000
$
10,000
6
10,000
50,000
7
10,000
8
10,000
9
10,000
10
10,000
10,000
You are given an investment to analyze. The cash flows from this investment are End of...
You are given an investment to analyze. The cash flows from this
investment are End of year 1. $3,280 2. $1,460 3. $4,220 4. $11,170
5. $6,940 What is the present value of this investment if 5 percent
per year is the appropriate discount rate?
(Related to Checkpoint 6.6) (Present value of annuities and complex cash flows ) You are given...
(Related to Checkpoint 6.6)
(Present value of annuities and complex cash flows )
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
$16,000
$16,000
2
16000
3
16000
4
16000
5
16000
$16,000
6
16000
80000
7
16000
8
16000
9
16000
10
16000
16000
Assuming an annual discount rate of 15 percent, find the
present value of each investment.
a. What is the...
you are given an investment to analyze. the cash flows from this investment are: end of...
you are given an investment to analyze. the cash flows from this
investment are:
end of year
1. $2,777
2. $3,130
3 $.697
4.$2,091
5. $966
what is the future value of this investment at the end of year
five if 19.57 percent of the year is the appropriat
interest(discount) rate?
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
Problem 5-50 (similar to) (Present value of an uneven stream of payments) You are given three...
Problem 5-50 (similar 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 shown in the Below
table . Assuming a discount rate of 25 percent, find the present
value of each investment.
a. What is the present value of investment A at 25 percent
annual discount rate?
INVESTMENT
END OF YEAR
A
B
C
1
$12,000
$12,000
2
12000
3
12000
4
12000
5...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 32 minutes ago
asked 32 minutes ago
asked 42 minutes ago
asked 44 minutes ago
asked 49 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago