Question

Consider a series of end-of-period CFs spanning 2042-2056, which increase at a 1.3% rate each period....

Consider a series of end-of-period CFs spanning 2042-2056, which increase at a 1.3% rate each period. The amount of the first CF in the series is $124. The interest rate is 3.8%. What is the equivalent uniform amount for a series of end-of-year CFs spanning the same time period? (answer: $134.73)

How do you get this answer? Either by hand or excel

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

THE CASHFLOWS ARE:

CELL NUMBER YEAR CASHFLOWS
Q1 2042 124
Q2 2043 125.612
Q3 2044 127.244956
Q4 2045 128.8991404
Q5 2046 130.5748293
Q6 2047 132.272302
Q7 2048 133.991842
Q8 2049 135.7337359
Q9 2050 137.4982745
Q10 2051 139.285752
Q11 2052 141.0964668
Q12 2053 142.9307209
Q13 2054 144.7888203
Q14 2055 146.6710749
Q15 2056 148.5777989

THE NPV OF THE CASHFLOWS ARE= =NPV(0.038,O1:O15)=1519.17

EQUIVALENT PAYMENT=PMT(0.038,15,P1,0,0)=134.73

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a series of end-of-period CFs spanning 2042-2057, which decrease at a 1% rate each period....
Consider a series of end-of-period CFs spanning 2042-2057, which decrease at a 1% rate each period. The amount of the first CF in the series is $143. The interest rate is 3.3%. What is the equivalent value of this series at the beginning of 2042? (answer: $1,641.26) Can you show either by hand or excel?
Consider a series of $110 end-of-period CFs spanning 2051-2056 and a $126 CF at the beginning...
Consider a series of $110 end-of-period CFs spanning 2051-2056 and a $126 CF at the beginning of 2023. The interest rate is 2.1%. What is the equivalent value of these CFs at the end of 2042?
Consider a series of $125 end-of-period CFs spanning 2050-2056 and a $124 CF at the end...
Consider a series of $125 end-of-period CFs spanning 2050-2056 and a $124 CF at the end of 2066. The interest rate is 2%. What is the equivalent value of these CFs at the end of 2061?
Consider a series of end-of-period CFs spanning 2045-2056, which decrease by a fixed amount each period....
Consider a series of end-of-period CFs spanning 2045-2056, which decrease by a fixed amount each period. The amount of the first CF in the series is $1,097 and the decrement is $73. The interest rate is 2.6%. What is the equivalent value of this series at the beginning of 2045? (answer: $7,318.57)
Consider a series of $115 end-of-period CFs spanning 2053-2057 and a $121 CF at the end...
Consider a series of $115 end-of-period CFs spanning 2053-2057 and a $121 CF at the end of 2042. The interest rate is 1.5%. What is the equivalent value of these CFs at the end of 2047? (answer: $640.90) Please show all work
a) Consider a $762 CF at the beginning of 2042. The interest rate is 2.8%. What...
a) Consider a $762 CF at the beginning of 2042. The interest rate is 2.8%. What is the equivalent uniform amount for a series of end-of-year CFs spanning 2052-2056? (answer: $218.05) b)Consider a $760 CF at the beginning of 2063. The interest rate is 3.9%. What is the equivalent uniform amount for a series of end-of-year CFs spanning 2050-2055? (answer: $87.88) How do you work this out my hand to get the answer?
Consider a series of end-of-period CFs spanning 2046-2055, which decrease by a fixed amount each period....
Consider a series of end-of-period CFs spanning 2046-2055, which decrease by a fixed amount each period. The amount of the first CF in the series is $71 and the decrement is $71. The interest rate is 3.5%. What is the equivalent value of this series at the end of 2055?
. Consider a series of $71 end-of-period CFs spanning 2050-2055 and a $103 CF at the...
. Consider a series of $71 end-of-period CFs spanning 2050-2055 and a $103 CF at the beg of 2066. The interest rate is 2.4%. What is the equivalent value of these CFs at the beg of 2046? (answer: $420.97 Please show all work
Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one...
Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is $5500 and g = 6% per year thereafter. For equivalent cash flow, find the equivalent uniform gradient amount, G over the same period if the initial value of the cash flows at the end of year one is $(4500). The interest rate is 10% per year. Write the complete equations used (e.g. P=A(P/A, 12%, 5)+ F(P/F,12%,5)) and substitute the values of the factors...
Problem 2. Consider the following series of cash flows: Cumulative Month Amount 0 1 2 3...
Problem 2. Consider the following series of cash flows: Cumulative Month Amount 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 CF (1,000s of $) $400.00 -700 1200 600 300 -1000 -1200 -400 -300 -1000 1200 400 300 1000 -1200 -400 -300 1000 1200 400 300 -1000 What is the NPV if the MARR yields 15%? Compute your solution by two (2) methods as follows:   Example. Compute the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT