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
now, $860 three years...
#4 Part 4 The Capital Budgeting Process 4. You will receive $6,800 three years from now....
#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...
You will receive $4,500 three years from now. The discount rate is 13 percent. a. What...
You will receive $4,500 three years from now. The discount rate is 13 percent. a. What is the value of your investment two years from now? Multiply $4,500 × .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.) b. What is the value of your investment one year from now? Multiply your rounded answer to part a by .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.)
2. You will receive $5,000 one year from now, 6000 three years from now, and 7000...
2. You will receive $5,000 one year from now, 6000 three years from now, and 7000 five years from now in real terms. Each payment will be received at the end of the period with the first payment occurring one year from today. The relevant nominal discount rate is 9.625 percent and the inflation rate is 2.3 percent. What are your winnings worth today in real dollars? Hra 151 25 4. ABC Corp. issued a 25-year maturity bond in 2001...
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You will receive $590,000 now, and you will not have to pay taxes on this amount....
You will receive $590,000 now, and you will not have to pay taxes on this amount. In addition, beginning one year from today, you will receive $260,000 each year for 30 years. The cash flows from this annuity will be taxed at 28 percent. Calculate PV assuming 7% discount rate
Suppose you receive $100 at the end of each year for the next three years. a....
Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 10%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 10% interest per year. What is the balance in the account at the end of each of the next...
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You are to receive $1,000 at the end of one year, $1,200 at the end of two years; $5,300 at the end of three years. If the interest rate is 10 %, the present value of these cash flows is: $3,044 $6,198 $7,500 $2,878 $5,883
Suppose you receive $120 at the end of each year for the next three years. a....
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If we will receive $100 per year beginning one year from now for a period of three years with a 12% discount rate, what...
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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...
2. You will receive $5,000 one year from now, 6000 three years from now, and 7000 five years from now in real terms. Each payment will be received at the end of the period with the first payment occurring one year from today. The relevant nominal discount rate is 9.625 percent and the inflation rate is 2.3 percent. What are your winnings worth today in real dollars? Hra 151 25 4. ABC Corp. issued a 25-year maturity bond in 2001...
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If we will receive $100 per year beginning one year from now for a period of three years with a 12% discount rate, what would be the value of our investment today? $230 $240 $250 O $260
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