Present value = Future value/(1+Interest rate)^number of years
Present value of cash flow stream = 150/(1.12)+200/(1.12)^2 + 350/(1.12)^3 – 200/(1.12)^4
= $415.3868
i.e. $415.39
5 What is the present value of the following uneven cash flow stream? The appropriate interest...
Please show calculations What is the present value of the following uneven cash flow stream? The appropriate interest rate is 10% compounded annually. 0 -------------- 1 ----------- 2 ------------ 3 ---------------- 4 ---------- $0------------$100--------$300---------$300-------------$(50)-------
Uneven cash flow streamm a. Find the present values of the following cash flow streams at 4% compounded annually. Round your answers to the nearest cent. 2 3 4 Stream A$0 150 $400 $400 $400 $300 Stream B Stream A $ Stream B $ $0 $300 $400 $400 $400 $150 b, what are the PVs of the streams at 0%, compounded annually? Stream A $ Stream B $
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: $ ...
Click here to read the eBook: Uneven Cash Flows UNEVEN CASH FLOW STREAM Find the present values of the following cash flow streams at a 10% discount rate. Round your answers to the nearest cent. 1 Stream A $0 $100 $350 $350 $350 $300 Stream B Stream A $ Stream B $ 0 $300 $350 $350 $350 $100 b. What are the PVs of the streams at a 0% discount rate? Stream A S Stream B $ O Ieon Key...
Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay...
Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay...
What is the present value of the following uneven cash flow. 150, 350, 750, -85? The interest rate is 9%
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....
What is the present value of the following cash-flow stream if the interest rate is 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Year Cash Flow 1 $ 250 2 450 3 350 Present value $
What is the PV of the following UNEVEN cash flow stream if the annual interest rate is 6%? The payments are 100, 200, 200, 567, 600 in years 1 through 5.