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losest to: net rate of interest is 8%, then the present value (PV) of this stream...
yes or no? Generally, the most difficult part of utilizing the net present value concept is:...
yes
or no?
Generally, the most difficult part of utilizing the net present value concept is: determining whether the discount rate used is higher or lower than the internal rate of return. determining the initial cash outflow required to start a project. computing the net present value once the discount rate and cash flows are determined estimating the future cash flows given the initial investment in the project.
please help and answer each part!! ill give feedback! Present value Mixed streams Consider the mixed...
please help and answer each part!! ill give feedback!
Present value Mixed streams Consider the mixed streams of cash flows shown in the folowing table a. Find te present value of each stream using a 7% discount rate. b. Compare the caloulated present values and discuss them in light of S the undnoounted cash fows totaling $50,000 in each case, Is thore some discount rate at which the present values of the two streams would be The present value of...
Relationship between future value and present value long dash—Mixed stream. Using the information in the accompanying...
Relationship between future value and present value long dash—Mixed stream. Using the information in the accompanying table, answer the questions that follow. a. Determine the present value of the mixed stream of cash flows using a 55% discount rate. b. How much would you be willing to pay for an opportunity to buy this stream, assuming that you can at best earn 55% on your investments? c. What effect, if any, would a 77% rather than a 55% opportunity cost...
Relationship between future value and present value: Mix stream. Using the information in the accompanying table,...
Relationship between future value and present value: Mix stream. Using the information in the accompanying table, answer the questions that follow. Year Cash flow 0 $0 1 800 2 900 3 1000 4 1500 5 2000 a. Determine the present value of the mixed stream of cash flows, using a 5% discount rate. b. Suppose you had a lump sum equal to your answer in part (a) on hand today. If you invested this sum for 5 years and earned...
What is the formula for calculating the present value of a future income stream at a...
What is the formula for calculating the present value of a future income stream at a specific discount rate? PV-Future Value divided by the discount rate PV = the sum of a stream of payments discounted annually over the term of years of the income stream PV Future Value muried by the discount PV = a calculation of the time value of money, without reference to a discount rate or risk QUESTION 11 What are the two principal goals 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: 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 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...
Ch 05: Assignment Time Value of Money Back to Assignment Attempts: Average:/4 3. Present value Finding...
Ch 05: Assignment Time Value of Money Back to Assignment Attempts: Average:/4 3. Present value Finding a present value is the reverse of finding a future value is the process of calculating the present value of a cash flow or a series of cash flows to be received in the future Which of the following investments that pay will $10,500 in 13 years will have a lower price today? The security that earns an interest rate of 14.50%. The security...
What is the present value of each of these three investments if the appropriate discount rate is 11 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:InvestmentEnd of YearABC1$1,000$2,000$5,00022,0002,0005,00033,0002,000(5,000)4(4,000)2,000(5,000)54,0005,00015,000 What is the present value of each of these three investments if the appropriate discount rate is 11 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 $ 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?
yes
or no?
Generally, the most difficult part of utilizing the net present value concept is: determining whether the discount rate used is higher or lower than the internal rate of return. determining the initial cash outflow required to start a project. computing the net present value once the discount rate and cash flows are determined estimating the future cash flows given the initial investment in the project.
please help and answer each part!! ill give feedback!
Present value Mixed streams Consider the mixed streams of cash flows shown in the folowing table a. Find te present value of each stream using a 7% discount rate. b. Compare the caloulated present values and discuss them in light of S the undnoounted cash fows totaling $50,000 in each case, Is thore some discount rate at which the present values of the two streams would be The present value of...
What is the formula for calculating the present value of a future income stream at a specific discount rate? PV-Future Value divided by the discount rate PV = the sum of a stream of payments discounted annually over the term of years of the income stream PV Future Value muried by the discount PV = a calculation of the time value of money, without reference to a discount rate or risk QUESTION 11 What are the two principal goals of...
(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...
Ch 05: Assignment Time Value of Money Back to Assignment Attempts: Average:/4 3. Present value Finding a present value is the reverse of finding a future value is the process of calculating the present value of a cash flow or a series of cash flows to be received in the future Which of the following investments that pay will $10,500 in 13 years will have a lower price today? The security that earns an interest rate of 14.50%. The security...
(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?
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