Homework Answers
Solution:-
(a)
We know that as per CAGR formula, the following is the equation:
Future value= Present value*(1+r)n
620= PV*(1+11%)2
PV= $503.2
(b)
Present value (Stream A)= 110*(1/1.19) + 110*(1/1.19)2 +110*(1/1.19)3 + 110*(1/1.19)4 + 110*(1/1.19)5 + 110*(1/1.19)6 + 110*(1/1.19)7
Present value (Stream A)= $407.66
Present value (Stream B)= 193*(1/1.19) + 165*(1/1.19)2 +138*(1/1.19)3 + 110*(1/1.19)4 + 83*(1/1.19)5 + 55*(1/1.19)6 + 28*(1/1.19)7
Present value (Stream B)= $477.8
Add Answer to:
P4A.16 (similar to) Question Help Using a financial calculator or an Excel spreadsheet, calculate the following...
P4A.16 (similar to) Question Help Using a financial calculator or an Excel spreadsheet, calculate the following...
P4A.16 (similar to) Question Help Using a financial calculator or an Excel spreadsheet, calculate the following a. The present value of $740 to be received 2 years from now, using a discount rate of 14%. b. The present value of the following end-of-year income streams, using a discount rate of 21% and assuming it is now the beginning of 2018 a. The present value of the future sum in part (a) is $ (Round to the nearest cent.) 0 Data...
P4A.8 (similar to) Question Help The following table. . lists the lump sum payout, the timing...
P4A.8 (similar to) Question Help The following table. . lists the lump sum payout, the timing of that payout, and the discount rate associated with five different investments. Calculate the present value of each investment The present value, PV, of the future sum of Investment A is $ I (Round to the nearest cent.) 11% Investment Future Sum Discount Rate Payout at End of Year $5,000 7% $32,000 2% $11,000 $150,000 6% $40,000 25% (Click on the icon located on...
P4A.17 (similar to) Question Help Terri Allessandro has an opportunity to make any of the following...
P4A.17 (similar to) Question Help Terri Allessandro has an opportunity to make any of the following investments: . The purchase price, the lump-sum future value, and the year of receipt are given below for each investment. Terri can earn a rate of return of 11% on investments similar to those currently under consideration. Evaluate each investment to determine whether it is satisfactory, and make an investment recommendation to Terri. The present value, PV, at 11% required return of the income...
Use a financial calculator or an Excel spreadsheet to estimate the IRR for the following investment...
Use a financial calculator or an Excel spreadsheet to estimate the IRR for the following investment The yield for investment Ais %. (Round to two decimal places.) Data Table Year $2,314 Initial Future End of Investment Investment Value $1,600 $9,300 $17.800 $700 $4,110 $2,900 $4,256 $5,500 $20.996 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.
Please help with the following question: Present valueMixed streams Consider the mixed streams of cash flows...
Please help with the following question:
Present valueMixed streams Consider the mixed streams of cash flows shown in the following table, a. Find the present value of each stream using a 5% discount rate. b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $50,000 in each case. Is there some discount rate at which the present values of the two streams would be equal? a. The present value of the cash flows...
Present value calculation Without referring to the preprogrammed function on your financial calculator, use the basic...
Present value calculation Without referring to the preprogrammed function on your financial calculator, use the basic formula for present value, along with the given discount rate, r, and the number of periods, n, to calculate the present value of $1 in the case shown in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Opportunity cost,r 13% Number of periods, n 13 The...
PICTODEPOO LoL OLULU ILI Save Homework: HW #3 Ch 5 - Online 2020 Score: 0 of...
PICTODEPOO LoL OLULU ILI Save Homework: HW #3 Ch 5 - Online 2020 Score: 0 of 20 pts < 4 of 5 (3 complete) P5-33 (book/static) HW Score: 60%, 60 of 100 pt Question Help O Present value-Mixed streams Consider the mixed streams of cash flows shown in the following table, a. Find the present value of each stream using a 5% discount rate. b. Compare the calculated present values and discuss them in light of the undiscounted cash flows...
Please provide a detail calculation using formula, financial calculator or excel. 22. Assume the following regarding...
Please provide a detail calculation using formula, financial calculator or excel. 22. Assume the following regarding a growing annuity valuation problem: Your salary at the end of the last year that you work is $90,000. You would like your income stream to begin at the end of your first year of retirement with a payment equal to 70% of your last working year’s salary. (Assume all amounts are “end of year” payments.) You plan to be retired for 25 years....
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...
P4-7 (similar to) HW Score: 0%, 0 of 16 pts Question Help Present value of an...
P4-7 (similar to) HW Score: 0%, 0 of 16 pts Question Help Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 9% $331.28 $ (Round to the nearest cont.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet) Number of Payments or Interest Rate Future Value Annuity Present Value...
P4A.16 (similar to) Question Help Using a financial calculator or an Excel spreadsheet, calculate the following a. The present value of $740 to be received 2 years from now, using a discount rate of 14%. b. The present value of the following end-of-year income streams, using a discount rate of 21% and assuming it is now the beginning of 2018 a. The present value of the future sum in part (a) is $ (Round to the nearest cent.) 0 Data...
P4A.8 (similar to) Question Help The following table. . lists the lump sum payout, the timing of that payout, and the discount rate associated with five different investments. Calculate the present value of each investment The present value, PV, of the future sum of Investment A is $ I (Round to the nearest cent.) 11% Investment Future Sum Discount Rate Payout at End of Year $5,000 7% $32,000 2% $11,000 $150,000 6% $40,000 25% (Click on the icon located on...
P4A.17 (similar to) Question Help Terri Allessandro has an opportunity to make any of the following investments: . The purchase price, the lump-sum future value, and the year of receipt are given below for each investment. Terri can earn a rate of return of 11% on investments similar to those currently under consideration. Evaluate each investment to determine whether it is satisfactory, and make an investment recommendation to Terri. The present value, PV, at 11% required return of the income...
Use a financial calculator or an Excel spreadsheet to estimate the IRR for the following investment The yield for investment Ais %. (Round to two decimal places.) Data Table Year $2,314 Initial Future End of Investment Investment Value $1,600 $9,300 $17.800 $700 $4,110 $2,900 $4,256 $5,500 $20.996 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.
Please help with the following question:
Present valueMixed streams Consider the mixed streams of cash flows shown in the following table, a. Find the present value of each stream using a 5% discount rate. b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $50,000 in each case. Is there some discount rate at which the present values of the two streams would be equal? a. The present value of the cash flows...
Present value calculation Without referring to the preprogrammed function on your financial calculator, use the basic formula for present value, along with the given discount rate, r, and the number of periods, n, to calculate the present value of $1 in the case shown in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Opportunity cost,r 13% Number of periods, n 13 The...
PICTODEPOO LoL OLULU ILI Save Homework: HW #3 Ch 5 - Online 2020 Score: 0 of 20 pts < 4 of 5 (3 complete) P5-33 (book/static) HW Score: 60%, 60 of 100 pt Question Help O Present value-Mixed streams Consider the mixed streams of cash flows shown in the following table, a. Find the present value of each stream using a 5% discount rate. b. Compare the calculated present values and discuss them in light of the undiscounted cash flows...
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...
P4-7 (similar to) HW Score: 0%, 0 of 16 pts Question Help Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 9% $331.28 $ (Round to the nearest cont.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet) Number of Payments or Interest Rate Future Value Annuity Present Value...
Most questions answered within 3 hours.
-
how
does gravity affect the trajectory of projectile? what would be the
shape of the trajactory...
asked 4 minutes ago -
Two small plastic spheres are given positive electrical charges.
When they are a distance of 15.4...
asked 11 minutes ago -
An acidic solution containing gold ions is
electrolyzed, producing gaseous oxygen (from water) at the anode...
asked 27 minutes ago -
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 1 hour ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 1 hour ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 2 hours ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 2 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 2 hours ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 3 hours ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 3 hours ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 4 hours ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 4 hours ago