Question

PIUDel 3-30 ( S al U) (Present value of an uneven stream of payments) You are given three investment wtematives to analyze. T


percent annual discount rate? 0 Data Table INVESTMENT END OF YEAR $16,000 $16,000 16,000 16,000 16,000 16,000 $16,000 16,000
0 0
Add a comment Improve this question Transcribed image text
Answer #1

PV of Investment A = C0+ CF1/(1+r)^1 + CF2/(1+r)^2 …………CFn/(1+r)^n

= 16000/1.23^1+16000/1.23^2+16000/1.23^3+16000/1.23^4+16000/1.23^5

=44855.57

Add a comment
Know the answer?
Add Answer to:
PIUDel 3-30 ( S al U) (Present value of an uneven stream of payments) You are...
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
  • ​(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...

  • ?(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 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?

  • (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?

  • calculate the present value of the annual end-of-year payments at the specified discount rate over the...

    calculate the present value of the annual end-of-year payments at the specified discount rate over the given For each of the investments given in the following table, period. The present value, PV, of the annual end-of-year returns at the specified discount rate over the given period for Investment Ais (Round to the nearest cent.) The present value, PV, of the annual end-of-year returns at the specified discount rate over the given period for Investment Bis S . (Round to the...

  • Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at...

    Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $400 at the end of Year 4, $600 at the end of Year 5, and $800 at the end of Year 6. If other investments of equal risk earn 6% annually. What is its present value? Round your answer to the nearest cent. What is its future value? Round your answer to the nearest cent....

  • Present Value of Uneven Cash Flow 10. You expect to receive $300, $400, $500, $300, $400...

    Present Value of Uneven Cash Flow 10. You expect to receive $300, $400, $500, $300, $400 and $500 at the end of each year over the next 6 years. If an annual interest rate is 4 percent, what is the present value of this uneven cash flow stream? a. $2,083 11. You expect to receive $300, $400, $500, $300, $400 and $500 at the end of each year over the next 6 years. If an annual interest rate is 2...

  • Present and Future Value of an Uneven Cash Flow Stream An investment will pay $200 at...

    Present and Future Value of an Uneven Cash Flow Stream An investment will pay $200 at the end of each of the next 3 years, $400 at the end of Year 4, $500 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 9% annually, what is this investment's present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $  ...

  • ​(Present value of annuities and complex cash flows​) You are given three investment alternatives to analyze....

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

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