What is the present value of the following set of end of the
year cash flows:
Year 1: $450; Year 2: $600; and then an eight year annuity of $400
per year if the discount rate is 9%?
Group of answer choices
$2,214
$2,462
$2,781
$3,112
$3,244
Ans $ 2781
Year | Project Cash Flows (i) | DF@ 9% | DF@ 9% (ii) | PV of Project ( (i) * (ii) ) |
1 | 450 | 1/((1+9%)^1) | 0.917 | 413 |
2 | 600 | 1/((1+9%)^2) | 0.842 | 505 |
3 | 400 | 1/((1+9%)^3) | 0.772 | 309 |
4 | 400 | 1/((1+9%)^4) | 0.708 | 283 |
5 | 400 | 1/((1+9%)^5) | 0.650 | 260 |
6 | 400 | 1/((1+9%)^6) | 0.596 | 239 |
7 | 400 | 1/((1+9%)^7) | 0.547 | 219 |
8 | 400 | 1/((1+9%)^8) | 0.502 | 201 |
9 | 400 | 1/((1+9%)^9) | 0.460 | 184 |
10 | 400 | 1/((1+9%)^10) | 0.422 | 169 |
PV | 2,781 |
What is the present value of the following set of end of the year cash flows:...
When you retire 50 years from now, you want to have $2,000,000 million. You think you can earn an average of 8 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 2 years from today. How much more will you have to deposit as a lump sum if you wait for 2 years before making the deposit? Group of answer choices...
a. What is the present value of the following set of cash flows, discounted at 10.3% per year? Year CF WO S8 $17 $26 b. What is the present value of the following set of cash flows, discounted at 10.3% per year? Year $35 $26 $8 c. Each set contains the same cash flows (S8, S17, $26. $35, $44), so why is the present value different? a. What is the present value of the following set of cash flows, discounted...
a. What is the present value of the following set of cash
flows, discounted at 10.8 % per year?
a. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year - CF $8 $19 $19 $30 b. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year CF $52 $41 $30 $ 19 9 8 c. Each set contains the same cash flows ($8,...
What is the present value of the following stream of cash flows: 4,000 in one year, 8,000 in two years and 12,000 in three years if the discount rate is 10%? 19,264 21,455 23,565 25,439 QUESTION 8 What is the present value of a 5 period annuity of $3,000 if the interest rate is 12% and the first payment is in one period? 9,112 10,814 12,112 13,200 QUESTION 9 What is the value of a perpetuity that starts in one...
What is the net present value of the following set of cash flows at a discount rate of 5 percent: Year 0 = -$62,000; Year 1 = $16,500; Year 2 = $23,800; Year 3 = $27,100 and Year 4 = $23,300?
What is the net present value of the following set of cash flows at a discount rate of 6 percent? At 12 percent? Year Cash Flow 0 −$ 47,500 1 12,500 2 18,500 3 21,500 4 22,000
Buestion . .. What is the present value of the following set of cash flows, discounted at 100% per year? Year CI 1 $10 522 4 565 5 b. What is the present of the following set of cash flows, discounted at 100% per year? Year CF 1 558 2 5-46 531 4 522 590 5 510 c. Each set contains the same cash flow (510, 522 54 546 558)so why is the present value different? .. What is the...
Present Value and Multiple Cash Flows[LO1] Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent?
What is the present value of the following set of cash flows at an interest rate of 7%: $1,000 today, $2,000 at end of year 1, $4,000 at end of year 2, and $6,000 at end of year 3? How would you solve this using a TI-84 calculator?
What is the present value of the following set of cash flows at a 10% discount rate? ered f1.00 cion Year Cash Flow 1 OMR800 2 -OMR800 3 OMR800 4 -OMR800 Select one: a. OMR 0.00 b. OMR 120.76 COMR 173.31 d. OMR 379.41 e OMR3,312.13