Question

2. **PV and FVs of a cash flow stream** (Draw the
time line in Excel. Use Excel financial functions only.) PLEASE
SHOW WORK WTH EXCEL

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If other investments of equal risk earn 5% annually, what is its present value? Its future value?

PLEASE SHOW WORK WTH EXCEL

Answer #1

5-7 Present and Future Values of a Cash Flow
Stream An investment will pay $100 at the end of each of
the next 3 years, $200 at the end of year 4, $300 at the end of
year 5, and $500 at the end of Year 6. If other investments of
equal risk earn 8% annually, what is its present value? Its future
value?

Problem 4-7
Present and Future Value of an Uneven Cash Flow Stream An
investment will pay $100 at the end of each of the next 3 years,
$400 at the end of Year 4, $600 at the end of Year 5, and $700 at
the end of Year 6. If other investments of equal risk earn 7%
annually, what is its present value? Round your answer to the
nearest cent. $ What is its future value? Round your answer to...

Problem 4-7
Present and Future Value of an Uneven Cash Flow Stream
An investment will pay $100 at the end of each of the next 3
years, $400 at the end of Year 4, $600 at the end of Year 5, and
$800 at the end of Year 6. If other investments of equal risk earn
10% annually, what is its present value? Round your answer to the
nearest cent.
$
What is its future value? Round your answer to...

An investment will pay $100 at the end of each of the next 3
years, $200 at the end of Year 4, $300 at the end of Year 5, and
$500 at the end of Year 6. If other investments of equal risk earn
10% annually, what is its present value? Round your answer to the
nearest cent. If other investments of equal risk earn 10% annually,
what is its future value? Round your answer to the nearest
cent.

eBook Problem Walk-Through
An investment will pay $50 at the end of each of the next 3
years, $200 at the end of Year 4, $300 at the end of Year 5, and
$500 at the end of Year 6. If other investments of equal risk earn
8% annually, what is its present value? Its future value? Do not
round intermediate calculations. Round your answers to the nearest
cent.
Present value: $
Future value: $

An investment will pay $100 at the end of each of the next 3
years, $200 at the end of Year 4, $300 at the end of Year 5, and
$500 at the end of Year 6. If other investments of equal risk earn
6% annually, what is its present value? Its future value? Do not
round intermediate calculations. Round your answers to the nearest
cent..

.
Assuming a discount rate of 14%, calculate the PV of a cash flow
stream that pays $500 in one year and $1,000 in 5 years.

Draw a time line of the following three cash flow streams.
Stream A has cash flows of -100, 90, 186, 85, and 200 in years 0
through 4.
Stream B is an annuity with cash flows of $100 for three
years.
Stream C is a perpetuity with a constant cash flow of $80.
Compare the cash flows of the three cash flow streams. Identify
the cash flow stream pays the most at year two and record this
NUMBER.

An investment will pay $50 at the end of each of the next 3
years, $200 at the end of Year 4, $300 at the end of Year 5, and
$550 at the end of Year 6. If other investments of equal risk earn
12% annually, what is its present value? Its future value? Do not
round intermediate calculations. Round your answers to the nearest
cent.
Present value: $
Future value: $

An investment will pay $150 at the end of each of the next 3
years, $200 at the end of Year 4, $300 at the end of Year 5, and
$600 at the end of Year 6. If other investments of equal risk earn
11% annually, what is its present value? Its future value? Do not
round intermediate calculations. Round your answers to the nearest
cent. Present value: Future value:

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