Question

What is the present value of the following cash flow stream at rate
of 10.0% ?

Years: 0 1 2 3

CFs: $750. $2,4050. $3,175. $4,400

Answer #1

Present Value is the discounted future cash flows. Here, the rate of discount is 10% (r).

Now, to calculate the Present Value of a Cash Flow in any year, the formula to be used is, PV = Cash Flow / (1 + r)^Year.

So, for the year 0, Present Value will be 750 / (1+ 10%)^0 = $750

Similarly, for year 1, PV will be 24050 / (1 + 10%)^1 = $21,863.64

Year 2, 3175 / (1 + 10%)^2 = $2,623.97

Year 3, 4400 / (1 + 10%)^3 = $3,305.79

The Present Value of the cash flows shall be calculated as below:

Particulars | Year | Cash Flow | PVF @ 10% | Present Value |

Cash Flows | 0 | 750 | 1 | $750.00 |

Cash Flows | 1 | 24050 | 0.9091 | $21,863.64 |

Cash Flows | 2 | 3175 | 0.8264 | $2,623.97 |

Cash Flows | 3 | 4400 | 0.7513 | $3,305.79 |

Sum of Present Value | $28,543.39 |

what is the present value of the following cash flow stream at a
rate of 10.0%? 1 -1,500 2 $3,000 3 $4,500 4 $5,000

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?

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

What is the present value of the following cash flow
stream? The appropriate interest rate is 10 percent,
compounded annually.
0 1 2 3 4
______________________________________________________________
0 100 300 300 -50

What is the present value of the following cash-flow stream if
the interest rate is 4%? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
Year
Cash Flow
1
$
170
2
370
3
270
Present value

Consider the following cash flows and calculate the Present
Value of this cash flow stream if the interest rate is
3%. Please include two decimals in your answer and a
negative if appropriate
Year 0: $-210
Year 1: $172
Year 2: $0
Year 3: $0
Year 4: $228

Consider the following cash flows and calculate the Present
Value of this cash flow stream if the interest rate is
5%. Please include two decimals in your answer and a
negative if appropriate
Year 0: $113
Year 1: $-379
Year 2: $0
Year 3: $0
Year 4: $492

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 $

Consider the following cash flows and calculate the Present
Value of this cash flow stream if the interest rate is
6%. Please include two decimals in your answer and a
negative if appropriate
Year 0: $-327
Year 1: $190
Year 2: $0
Year 3: $0
Year 4: $162
Answer =

6. What is the present value of the following uneven cash flow
stream? The appropriate interest rate is 5.6%, compounded annually.
Note that the final cash flow represents a project where there may
be reclamation or other “end of project” costs which are greater
than any final income and/or salvage value. Please show work.
0-------------1--------------2--------------3---------------4
1. 365
2. -200
3. 325
4. 575

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