Question

​(Present value of annuities and complex cash flows​) You are given three investment alternatives to analyze. The cash flows from these three investments are as​ follows:

Investment End of Year $21,000 $ 16,000 16,000 16,000 16,000 16,000 63,000 $ 16,000 16,000 16,000 16,000 16,000 16,000 21,000

Assuming an annual discount rate of 18 percent, find the present value of each investment.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

H I L M N IS N13 fo =SUM(N3:N12) A A B G i A 2 year Cash flows pv@18% Present value year Cash flows 1 $16,000.00 0.8475 $ 13,

e fx =SUM(N3:N12) N13 B A C F G H I J K L M 1 A 2 year Cash flows pv@18% Present value 31 16000 1=1/1.18 =B3*C3 42 16000 =C3/

Add a comment
Know the answer?
Add Answer to:
​(Present value of annuities and complex cash flows​) You are given three investment alternatives to analyze....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • You are given three investment alternatives to analyze. The cash flows from these three investments are...

    You are given three investment alternatives to analyze. The cash flows from these three investments are as​ follows: Investment End 0f Year A B C 1 $3,000 $1,000 $6,000 2 4,000 1,000 6,000 3 5,000 1,000 (6,000) 4 (6,000) 1,000 (6,000) 5 6,000 5,000 16,000 a.  What is the present value of investment A at an annual discount rate of 15 percent? b.  What is the present value of investment B at an annual discount rate of 15 percent? c.  ...

  • ?(Presentvalue of an uneven stream ofpayments?)You are given three investment alternatives to analyze....

    (Present value of an uneven stream of payments)You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:a. What is the present value of investment A at an annual discount rate of 12  percent?(Present value of an uneven stream of payments) You are given three investment alternatives to analyze The cash flows from these three investments are as follows Investment End of Year $ 1,000 2,000 3,000 (4,000) $2,000 2,000 2,000 2,000 4,000 $ 6,000 6,000...

  • (Present value of an uneven stream of payments) You are given three investment alternatives to analyze....

    (Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A C 2,000 $1,000 1,000 1,000 1 4,000 4,000 (4,000) (4,000) 14,000 2 3,000 4,000 (5,000) 5,000 3 1,000 3,000 5 What is the present value of each of these three investments if the appropriate discount rate is 13 percent? a. What is the present value of investment A at...

  • ​(Present value of an uneven stream of payments​) You are given three investment alternatives to analyze....

    ​(Present value of an uneven stream of payments​) You are given three investment alternatives to analyze. The cash flows from these three investments are as​ follows: End of Year A B C 1 $1,000 $3,000 $5,000 2 2,000 3,000 5,000 3 3,000 3,000 (5,000) 4 -4,000 3,000 (5,000) 5 4,000 5,000 15,000 a.  What is the present value of investment A at an annual discount rate of 9 ​percent?  ​(Round to the nearest​ cent.) What is the present value of...

  • (Present value of an uneven stream of payments) You are given three investment alternatives to analyze....

    (Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows Investment End of Year $ A 5 3,000 4000 5.000 (6.000) 6000 $1,000 1.000 1.000 1.000 5,000 5.000 (5.000) (5.000) 15.000 What is the present value of each of these three Investments if the appropriate discount rate is 14 percent?

  • You are given three investment alternatives to analyze. The cash flows from these three investments as...

    You are given three investment alternatives to analyze. The cash flows from these three investments as followed: End of the year A B C 1 $3,000 $3,000 4,000 2 4,000 3,000 4,000 3 5,000 3,000 (4,000) 4 (6,000) 3,000 (4,000) 5 6,000 5,000 14,000 What is the present value of Investment A at an annual discount rate of 11 percent?

  • You are given three investment alternatives to analyze. The cash flows from these three investments are...

    You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year     A     B     C 1 $ 1,000  $ 1,000 $ 4,000   2    2,000   1,000 4,000   3    3,000   1,000 (4,000) 4    (4,000) 1,000 (4,000) 5    4,000   3,000    14,000   What is the present value of each of these three investments if the appropriate discount rate is 11 percent? (Round to the nearest cent.)

  • Question 6.12 You are given three investment alternatives to analyze. The cash flows from these three...

    Question 6.12 You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of year A B C 1 2000 1000 4000 2 3000 1000 4000 3 4000 1000 (4000) 4 (5000) 1000 (4000) 5 5000 3000 14000 What is the present value of each of these three investments if the appropriate discount rate is 9 percent?

  • (Present value of an uneven stream of payments) You are given three investment alternatives to analyze....

    (Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year $1,000 2,000 3,000 (4,000) 4,000 $3,000 3,000 3,000 3,000 5,000 $ 4,000 4,000 (4,000) (4,000) 14,000 4 What is the present value of each of these three investments if the appropriate d iscount rate is 13 percent?

  • Exercise n3: present value of an annuity You are given three investment alternatives to analyze. The...

    Exercise n3: present value of an annuity You are given three investment alternatives to analyze. The cas from these three investments are as follows YEAR INVESTA 1 10000 2 10000 3 10000 4 10000 5 10000 INVESTB INVESTC 1000 10000 5000 10000 10000 10000 10000 10000 Assuming a 5% interest rate (discount rate), find the present va .t=0) of each investment xercise n°4 : Effective annual rate ou want to borrow $1,000 from a friend for one year, and you...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT