Answer a.
Discount Rate = 10.30%
Present Value = $8/1.103 + $17/1.103^2 + $26/1.103^3 +
$35/1.103^4 + $44/1.103^5
Present Value = $91.20
Answer b.
Discount Rate = 10.30%
Present Value = $44/1.103 + $35/1.103^2 + $26/1.103^3 +
$17/1.103^4 + $8/1.103^5
Present Value = $104.42
Answer c.
The present value in part (b) is higher because the larger cash flows occur sooner.
a. What is the present value of the following set of cash flows, discounted at 10.3%...
a. What is the present value of the following set of cash
flows, discounted at 10.8 % per year?
a. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year - CF $8 $19 $19 $30 b. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year CF $52 $41 $30 $ 19 9 8 c. Each set contains the same cash flows ($8,...
What is the present value of the following set of cash flows, discounted at 15% per year? Year 3 $100 - $100 $200 - $200 CF The present value of the cash flow stream is $ (Round to the nearest cent.)
Buestion . .. What is the present value of the following set of cash flows, discounted at 100% per year? Year CI 1 $10 522 4 565 5 b. What is the present of the following set of cash flows, discounted at 100% per year? Year CF 1 558 2 5-46 531 4 522 590 5 510 c. Each set contains the same cash flow (510, 522 54 546 558)so why is the present value different? .. What is the...
What is the present value of the following set of end of the year cash flows: Year 1: $450; Year 2: $600; and then an eight year annuity of $400 per year if the discount rate is 9%? Group of answer choices $2,214 $2,462 $2,781 $3,112 $3,244
What is the present value of a stream of cash flows that pays $50 a year forever except for years 7 and 8? Discount rate is 10%. (The timeline of this stream of cash flows is given below) CF $50 $50 $50 $50 $50 $50 $50 $50 ……. Year 0 1 2 3 4 5 6 7 8 9 10 …….
each set contains the same cash flows ($10,$22,$34,$46,$58) so why
is the present value different
part(a) is from 10 to 58
part(b) is from 58 to 10
the present value of the following set of cash flows, discounted at 9.8% per year? Year O A. The present value in part (a) is lower because the larger cash flows occur sooner. O B. The present value in part (a) is higher because the larger cash flows occur sooner. O C. The...
What is the net present value of the following set of cash flows at a discount rate of 5 percent: Year 0 = -$62,000; Year 1 = $16,500; Year 2 = $23,800; Year 3 = $27,100 and Year 4 = $23,300?
(Present value of a growing perpetuity) What is the present value of a perpetual stream of cash flows that pays $3,500 at the end of year one and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 10%? What if the appropriate discount rate is 8%?
What is the net present value of the following set of cash flows at a discount rate of 6 percent? At 12 percent? Year Cash Flow 0 −$ 47,500 1 12,500 2 18,500 3 21,500 4 22,000
The present value of the following cash flow stream is $6.820 when discounted at 7 percent annually. Year 1 2 3 4 Cash Flow $1,000 ? 1,300 1,900 What is the value of the missing cash flow? Multiple Choice O $3,374.73 $3,786.46