Consider a cash flow and interest profile as shown: Year 0 Year 1 Year 2 Year...

Question

Question

Consider a cash flow and interest profile as shown:

	Year 0	Year 1	Year 2	Year 3
Cash Flow at the end of the year	-1000	3700	2800	1200
Interest Rate that year	N.A.	4%	7%	11.5%

The worth at the end of Year 3 of these cash flows is:

Answer 1

Answer #1

F = P *(1+I)^t

Future worth = -1000 * (1+0.04) *(1+0.07) *(1+0.115) + 3700 *(1+0.07) *(1+0.115) + 2800 *(1+0.115) + 1200

= -1000 * (1.04) *(1.07) *(1.115) + 3700 *(1.07) *(1.115) + 2800 *(1.115) + 1200

= 7495.51

Answer 2

Similar Homework Help Questions

12. (30.0 pts) For the cash flow profile and interest rates given in the table below:...

12. (30.0 pts) For the cash flow profile and interest rates given in the table below: Year 0 1 2 I Cash flow ($) -1,500 -2,000 0 3,800 1,200 Interest rate/year N/A 3% 4% 2% 4% a. (15.0 pts) Determine the value of the cash flow profile at year 2. b. (15.0 pts) Find the equivalent uniform series from year 3 to 4 (a uniform series with 2 cash flows - one at year 3 and another at year 4).
Question 10: Consider the following cash flow profile and assume MARR is 12%/year. 0 1 2...

Question 10: Consider the following cash flow profile and assume MARR is 12%/year. 0 1 2 3 End of Year Cash Flow -1000 3400 -5700 3800 a. What does Descartes' rule of signs tell us about the IRR (8) of this project? b. What does the Norstrom's criterion tell us about the IRR (s) of this project? c. Determine the ERR for this project. Is this project economically attractive?
An investment has the cash flow profile shown below: Year Year Year 0 4 8 Cash...

An investment has the cash flow profile shown below: Year Year Year 0 4 8 Cash Flow -$130,000 $30,000 $ 40,000 $15,000 1 Cash Flow $180,000 -$ 15,000 $210,000 Cash Flow $20,000 -$ 50,000 $90,000 -$ 20,000 5 9 2 6 10 3 7 Partc Using an internal rate of return analysis, identify the real, positive-valued root for the polynomial equation used to calculate the internal rate of return. % Round entry to 2 decimal places. The tolerance is +0.05....

2. Consider the end-of-year geometric sequence of cash flow in Fig. 1 and determine the PW and AW...

engineering economy: 2. Consider the end-of-year geometric sequence of cash flow in Fig. 1 and determine the PW and AW equivalent values. The rate of decrease is 20% per year after the first year, and the interest rate is 12% compounded monthly. (15%) 1000 10000.8) 10000.8) 1000(0.8) 2 4 End of Year 4 End o Fig. 1 2. Consider the end-of-year geometric sequence of cash flow in Fig. 1 and determine the PW and AW equivalent values. The rate of...
please help me draw the labelled cash flow For the cash flows shown below, determine the...

please help me draw the labelled cash flow For the cash flows shown below, determine the present worth & the equivalent uniform worth in years 1 through 5 at an interest rate of 18% per year compounded monthly. Draw the cash flow diagram as well. (6+ 2 + 2 pts) Year 0 1 2 3 4 5 Cash Flows, s 0 200,000 0 350,000 0 400,000
Find the present worth at time 0 of the chrome plating costs shown in the cash...

Find the present worth at time 0 of the chrome plating costs shown in the cash flow diagram. Assume i = 7% per year. The present worth of the chrome plating is determined to be_____ $ . P= ? 1 2 3 4 5 year 1000 1200 1400 1600 1800 2000

I. An investment has the following cash flow series where interest is 8%; Cash End of...

I. An investment has the following cash flow series where interest is 8%; Cash End of Year 0 Flow $300 $300 $600 $500 $300 $0 $800 $700 $600 2 4 7 8 a. Find the future worth of this cash flow series using the actual cash flows. b. Find the present worth of this series using the actual cash flows c. Find the present worth using the future worth. d. Find the worth of the series at the end of...
QUESTION 7 Consider the following cash flows: Year Cash Flow 0 -$10,000 1 $1,000 2 $2,000...

QUESTION 7 Consider the following cash flows: Year Cash Flow 0 -$10,000 1 $1,000 2 $2,000 3 $3,000 4 $4,000 5 $5,000 Which equation would you use to compute the IRR? 1. -$10000 + $1000(P/G, i, 5) = 0 2. -$10,000 + $1,000 * (P/A, i, 5) + $1,000 * (P/G, i, 5) = 0 3. -$10,000 + $1,000 + $1,000 * (P/G,i,5) = 0 4. None of the above
Consider the following project's after-tax cash flow in today's dollars: Year 0 1 2 3 Cash...

Consider the following project's after-tax cash flow in today's dollars: Year 0 1 2 3 Cash flow in Constant Dollars -$60,000 $25,000 $25,000 $35,000 a] Convert the cash flows from constant dollars (in the value of year 0) into equivalent current dollars with the base year being the present. Inflation rate is 2%. b) If the annual real interest rate is 5%, what is the present equivalent of the cash flow?

Engineering Economics: Show in Excel: 94. Consider the following cash flow profile: EOY Cash Flow -$50,000...

Engineering Economics: Show in Excel: 94. Consider the following cash flow profile: EOY Cash Flow -$50,000 $13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 What is the present worth equivalent for the cash flow series with an interest rate of 12%?