What is the present value of a $150,000 cash flow to be received at the end of each of the next 20 years from an account that earns an annual rate of 9%? (1pts) Question 38 - What is the present value of a $150,000 cash flow to be received at the end of each of the next 20 years from an account that earns an annual rate of 9%?
Select $3,000,000 as your answer
Select $7,674,018 as your answer
Select $1,369,282 as your answer
Select $2,324,169 as your answer
Annual Cash Flows P = $150000
Interest Rate = r = 9%
Number of periods = n = 20
This is case of ordinary Annuity (since the payments are made at end of each year)
Hence, NPV = P/(1+r) + P/(1+r)2 +.... P/(1+r)20
=> NPV = P [1 - (1+r)-n]/r = 150000 (1 - 1.09-20)/0.09 = $1,369,281.85
Hence the correct option is (c) $1,369,282
What is the present value of a $150,000 cash flow to be received at the end...
What is the present value of a $100,000 cash flow to be received at the end of each of the next 15 years from an account that earns an annual rate of 10%? 1,500,000 760,608 523,450 976,455
Find the present value if a cash flow of $400 is received at the end of each quarter over the next 5 years with a discount rate of 8% p.a.
PRESENT VALUE 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 9% annually, what is its present value? Round to TWO decimal places.
Present Value of Uneven Cash Flow 10. You expect to receive $300, $400, $500, $300, $400 and $500 at the end of each year over the next 6 years. If an annual interest rate is 4 percent, what is the present value of this uneven cash flow stream? a. $2,083 11. You expect to receive $300, $400, $500, $300, $400 and $500 at the end of each year over the next 6 years. If an annual interest rate is 2...
15. What is the present value of five $800 cash flows that occur at the end of each year for the next five years at a periodic interest rate of 8% compounded annually? The first cash flow occurs a year from now, the second cash flow occurs two years from now, ..., and the fifth cash flow occurs five years from now.
What is the present value of $37,300 to be received in 15 years; i = 6%. Present values 15563 What is the present value of a 10-year annuity of $2,900 per year; i = 4%. Present value 23521.60 What is the present value of a 7-year annuity of $4,800 with the first payment to be received 5 years from now; i = 6%. (Round answer to decimal places, e.g. 5,275.) Present value si What will be your annual payment if...
What is the present value of an investment involving $200 received at the end of year 1 through 5, a $300 cash outflow at the end of year 6, and $500 received at the end of years 7 through 10, given an annual percentage rate of 5 percent compounded annually?
1. For each of the following annuities calculate the annual cash flow Present Value Years Interest Rate $24,500 6 11% $19,700 8 7% 2. You deposit $5,000 at the end of each year for 20 years into an accouninterest, how much money will you have in the account in 20 years? 3. Lycan Inc. has 7% coupon bonds on the market that have 9 years left to maturity. The bonds make annual payments and have a par value of $1,000. If...
A)What is the present value of $26,400 to be received in 20 years; i = 6%. (Round answer to 0 decimal places, e.g. 5,275.) Present value : ........... B)What is the present value of a 15-year annuity of $2,600 per year; i = 5%. (Round answer to 0 decimal places, e.g. 5,275.) PRESENT VALUE : ................... C)What is the present value of a 5-year annuity of $3,500 with the first payment to be received 3 years from now; i =...
What are the PRESENT and FUTURE value of $900 to be received at the END of each year for the next 5 years if the discount / compounding is 7%? Please show work.