You will receive $1000 one year from now, $800 two years from now, $860 three years...
You will receive $1000 one year from now, $800 two years from now, $860 three years from now, and $1800 four years from now. If the discount rate is 10 percent,calculate the present value of these cash flows.
Homework Answers
![Discount End of Year Present Value Cash Flow Factor @ 10% 1 $1,000 0.90909 $909.09 S1,000 x 0.90909] $800 0.82645 $661.16 [$800 x 0.82645] $860 0.75131 $646.13 [$860 x 0.75131] 2 4$1,800 0.68301 $1,229.42 [$1,800 x 0.68301] PV of future Cash Flows $3,445.80 [Sum of of present value from year-1 thru 4] NOTE: Discount factor @ 10%-1/(1+10%)!; 1/(1+10%,-; 1/(1+10%), 1/(1+10%)4 EXCEL SCREENSHOT: End of Year Discount Factor Cash Flow @ 10% 1/(1+10%) -c2/( 1+1096) -c3/( 1+1096) -c4/(1+10%) Value -B2*C2 [$1,000 x 0.90909] B3 C3$800 x 0.82645] B4*C4$860 x0.75131] B5 C5 IS1,800 x 0.68301] $1,000 $1,800 PV of future Cash FlowsSUM D2:D5) [Sum of of present value from year-1 thru 4]](http://img.homeworklib.com/questions/8c3f8c80-72e8-11ea-828c-496bcd3c3926.png?x-oss-process=image/resize,w_560)
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You will receive $1000 one year from now, $800 two years from
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#4 Part 4 The Capital Budgeting Process 4. You will receive $6,800 three years from now....
#4
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#4
Part 4 The Capital Budgeting Process 4. You will receive $6,800 three years from now. The discount rate is 10 percent. a. What is the value of your investment two years from now? Multiply $6,800 X (1/1.10) or divide by 1.10 (one year's discount rate at 10 percent). b. What is the value of your iaveuitment ora year from now? Multiply your answer to part a by (1/1.10). c. What is the value of your invesanent today? Multiply your...
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