Homework Answers
Present value = Future value/(1+Discount rate)^Number of years
Future value = Present value*(1+Interest rate)^Number of years
Hence, value of all cash flows at Year 4 i.e. Q = 200(1.08)^3 + 200(1.08)^2 + 200(1.08) + 200 + 300/(1.08) + 400/(1.08)^2 + 500/(1.08)^3 + 600/(1.08)^4 + 700/(1.08)^5 + 800/(1.08)^6
= $3,340.4136
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Problem 2 of 3.( 1 40 points) Cash flow diagrams required in area below given CF...
Solve for the unknown quantity shown in the following cash flow diagrams. The MARR is 3%...
Solve for the unknown quantity shown in the following cash flow diagrams. The MARR is 3% a. (5 Points) 2 1 39 40 $500 $500 $500 $500 $500 b. (10 points) Hint: Try decomposing this cash flow into three simple cash flows, one of which is a uniform gradient. Remember that there is no cash flow in the first period of a uniform (arithmetic) gradient $600 $400 $300 $200 $100 3 4 1 6
Solve for the unknown quantity shown...
Solve for the unknown quantity shown in the following cash flow diagrams. The MARR is 3%...
Solve for the unknown quantity shown in the following cash flow
diagrams. The MARR is 3%
b. Hint: Try decomposing this cash flow into three simple cash
flows, one of which is a uniform gradient. Remember that there is
no cash flow in the first period of a uniform (arithmetic)
gradient.
$600 P $400 $300 $200 $100 4 2 3 1 5 6 LO n
$600 P $400 $300 $200 $100 4 2 3 1 5 6 LO n
30 points) Cash flow diagrams required A makes the two cash flows equivalent at 12% interest...
30 points) Cash flow diagrams required A makes the two cash flows equivalent at 12% interest rate compounded scount each CFD to present. The present value of the first cash flow is equal to Problem 3 of 3 What value of "Am yearly? Hint, discount the present value of the se esent value of the second cash flow A A A A A 120 120 120 100 100 0 1 5 years 2 3 4
Consider the following cash flow diagrams. In these diagrams the present value (P) and the future...
Consider the following cash flow diagrams. In these diagrams the
present value (P) and the future value (F) are economically
equivalent to the uniform series of payments (A) at a discount rate
of 8% per period. Is the value of P larger than F, equal to F, or
less than F?
QUESTION 1 Consider the following cash flow diagrams. In these diagrams the present value (P) and the future value (F) are economically equivalent to the uniform series of payments...
Consider the following cash flow diagrams. In these diagrams the present value (P) and the future...
Consider the following cash flow diagrams. In these diagrams the present value (P) and the future value (F) are economically equivalent to the uniform series of payments (A) at a discount rate of 8% per period. Is the value of P larger than F, equal to F, or less than F? P is larger than F P equals F P is less than QUESTION 2 For the same cashflows considered in question 1, if the discount rate changed from 8%...
1. Consider cash flow diagrams A and B below. Determine the value of X so that...
1. Consider cash flow diagrams A and B below. Determine the value of X so that both cash flow diagrams are equivalent at 10%/yr. Show your calculations. The diagrams are not drawn to scale, Your calculations for cash flow diagram A must include at least one uniform series factor. Your calculations for cash flow diagram B must include at least one gradient series factor
1. Consider cash flow diagrams A and B below. Determine the value of X so that...
1. Consider cash flow diagrams A and B below. Determine the value of X so that both cash flow diagrams are equivalent at 10%/yr. Show your calculations. The diagrams are not drawn to scale, Your calculations for cash flow diagram A must include at least one uniform series factor. Your calculations for cash flow diagram B must include at least one gradient series factor
ZYZ Inc. is considering a project with the following cash flows: Year Cash Flow (CF) 0...
ZYZ Inc. is considering a project with the following cash flows: Year Cash Flow (CF) 0 -$200,000 1 $30,000 2 $40,000 3 $50,000 4 $60,000 5 $70,000 If the discount rate is 5%, what is the NPV of the proposed project? Question 3 options: $11,572.99 $12,253.47 $21,009.43 $10,572.99
ZYZ Inc. is considering a project with the following cash flows: Year Cash Flow (CF) 0...
ZYZ Inc. is considering a project with the following cash flows: Year Cash Flow (CF) 0 -$200,000 1 $30,000 2 $40,000 3 $50,000 4 $60,000 5 $70,000 If the discount rate is 5%, what is the NPV of the proposed project? Question 37 options: $11,572.99 $10,572.99 $21,009.43 $12,253.47
12. (30.0 pts) For the cash flow profile and interest rates given in the table below:...
12. (30.0 pts) For the cash flow profile and interest rates given in the table below: Year 0 1 2 I Cash flow ($) -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).
Solve for the unknown quantity shown in the following cash flow diagrams. The MARR is 3% a. (5 Points) 2 1 39 40 $500 $500 $500 $500 $500 b. (10 points) Hint: Try decomposing this cash flow into three simple cash flows, one of which is a uniform gradient. Remember that there is no cash flow in the first period of a uniform (arithmetic) gradient $600 $400 $300 $200 $100 3 4 1 6
Solve for the unknown quantity shown...
Solve for the unknown quantity shown in the following cash flow
diagrams. The MARR is 3%
b. Hint: Try decomposing this cash flow into three simple cash
flows, one of which is a uniform gradient. Remember that there is
no cash flow in the first period of a uniform (arithmetic)
gradient.
$600 P $400 $300 $200 $100 4 2 3 1 5 6 LO n
$600 P $400 $300 $200 $100 4 2 3 1 5 6 LO n
30 points) Cash flow diagrams required A makes the two cash flows equivalent at 12% interest rate compounded scount each CFD to present. The present value of the first cash flow is equal to Problem 3 of 3 What value of "Am yearly? Hint, discount the present value of the se esent value of the second cash flow A A A A A 120 120 120 100 100 0 1 5 years 2 3 4
Consider the following cash flow diagrams. In these diagrams the
present value (P) and the future value (F) are economically
equivalent to the uniform series of payments (A) at a discount rate
of 8% per period. Is the value of P larger than F, equal to F, or
less than F?
QUESTION 1 Consider the following cash flow diagrams. In these diagrams the present value (P) and the future value (F) are economically equivalent to the uniform series of payments...
Consider the following cash flow diagrams. In these diagrams the present value (P) and the future value (F) are economically equivalent to the uniform series of payments (A) at a discount rate of 8% per period. Is the value of P larger than F, equal to F, or less than F? P is larger than F P equals F P is less than QUESTION 2 For the same cashflows considered in question 1, if the discount rate changed from 8%...
1. Consider cash flow diagrams A and B below. Determine the value of X so that both cash flow diagrams are equivalent at 10%/yr. Show your calculations. The diagrams are not drawn to scale, Your calculations for cash flow diagram A must include at least one uniform series factor. Your calculations for cash flow diagram B must include at least one gradient series factor
1. Consider cash flow diagrams A and B below. Determine the value of X so that both cash flow diagrams are equivalent at 10%/yr. Show your calculations. The diagrams are not drawn to scale, Your calculations for cash flow diagram A must include at least one uniform series factor. Your calculations for cash flow diagram B must include at least one gradient series factor
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).
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