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
PIUDel 3-30 ( S al U) (Present value of an uneven stream of payments) You are...
(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. 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. 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. 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. 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 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 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 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 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. 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