Homework Answers
| Year | Cash flow |
| 1 | 18500 |
| 2 | 18500 |
| 3 | 18500 |
| 4 | 0 |
| 5 | 0 |
| 6 | 18500 |
| 7 | 18500 |
| 8 | 18500 |
We need to compute the present value of cashflows to be received at the end of 6th, 7th and 8th year at the end of 3rd year by using the formula: PV=FV*(1/(1+r)^n)...(here FV is futre value, r is interest rate and n is no. of period).
Thus basis this formula:
PV of Cashflow to be received at end of 6th year: (18500*(1/(1.1)^3) = 13899
PV of Cashflow to be received at end of 7th year: (18500*(1/(1.1)^4) = 12636
PV of Cashflow to be received at end of 8th year: (18500*(1/(1.1)^5) = 11487
Thus minimum amont of X can be accepted at the end of 3rd year would be => 38022.12 (13899+12636+11487)
If like the answer, pls upvote. Thanks.
Add Answer to:
Q7) You can't you are entitled to receive an annual cash flow of amount A at...
It Q7 You are entitled to receive an annual cash flow of amount A at end...
It Q7 You are entitled to receive an annual cash flow of amount A at end deach year, starting 1 year from now, except no cash flow at end of fear 4 and year 5. The last cash ! flow will be paid at the end of year 8. At the end of 3rd year after you receive the 3rd payment, someone offeres offers you andnt of lump sum cash! Plow to buy the right to receive the best of...
Answer question 4 and 5. An INDIVIDUAL is entitled to receive an annual end-of- end of...
Answer question 4 and 5.
An INDIVIDUAL is entitled to receive an annual end-of- end of the 20-year period, annual payments will pass to to accumulate funds to provide a retirement annuity for its Vice Preside Upon retirement, she is entiearch, Jil G Sunrise industries wishes year payment of $44,000 for exactly 20 years. If she dies prior to the her heirs Ms. Garza, by contract, will retire at the end of exactly 12 years into an account earning 9%...
plz solve Q3.) A lump sum cash flow at end of year I is x, then...
plz solve
Q3.) A lump sum cash flow at end of year I is x, then decreases an amount IG every year until end of gear 8 as the last cash flow. What is the equivalent future value at end of year 8 for all o cash flows from year I to year & above with the annual interest of 6% x= 6000 G=200 is 6%
Assume that you are looking at an investment opportunity that offers an annual operating cash flow...
Assume that you are looking at an investment opportunity that offers an annual operating cash flow of $40,000 per year for 4 years. The initial investment to purchase the necessary equipment is $200,000. You assume that you can sell the equipment at the end of 4 years for $70,000. Also, there is a need for an investment in net working capital of $15,000. If the required rate of return is 5%, and the tax rate is 35%, would you accept...
24. Your grandmother is gifting you $125 a month for four years while you attend college...
24. Your grandmother is gifting you $125 a month for four years while you attend college to earn your bachelor's degree. At a 6.5 percent discount rate, what are these payments worth to you on the day you enter college? A. SS 201.16 B. 58.270.94 C. 55,509.19 D. 55,608.87 25. At 8 percent interest, how long would it take to quadruple your money? A 16.95 1664 C 1709 D. 18.01 26. You are considering two loans. The terms of the...
For the following cash flow diagram, with 10% per year, Find a) The equivalent single (lump...
For the following cash flow diagram, with 10% per year, Find a) The equivalent single (lump sum) cash flow at end of year 4 (18 points) b) The amount of the uniform annual equivalent cash flows (annuity) at the ends of years 1 to 5 (7 points) $700 00$200 0 5 $200 $500! $800
9. You won the lottery and you are scheduled to receive 30 annual payments of $100,000, starting next year. If your opp...
9. You won the lottery and you are scheduled to receive 30 annual payments of $100,000, starting next year. If your opportunity cost of money is 12% and you asked to receive your prize in cash today as a lump-sum payment, how much would you take home?
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...
Future Value of Uneven Cash Flow 22. You expect to receive $300, $400, $500, $300, $400...
Future Value of Uneven Cash Flow 22. 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 future value of this uneven cash flow stream? a. $2,636 23. 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...
If you invest $10,000 today and earn a 20% annual internal rate of return (IRR) over...
If you invest $10,000 today and earn a 20% annual internal rate of return (IRR) over five years (with all of the proceeds received at the end of the fifth year), then the amount you will receive at the end of the fifth year is: How much would you pay today for an investment offering a lump sum of $100,000 in five years if you hoped to earn an annual rate of return of 25%? You invest $300,000 today and...
It Q7 You are entitled to receive an annual cash flow of amount A at end deach year, starting 1 year from now, except no cash flow at end of fear 4 and year 5. The last cash ! flow will be paid at the end of year 8. At the end of 3rd year after you receive the 3rd payment, someone offeres offers you andnt of lump sum cash! Plow to buy the right to receive the best of...
Answer question 4 and 5.
An INDIVIDUAL is entitled to receive an annual end-of- end of the 20-year period, annual payments will pass to to accumulate funds to provide a retirement annuity for its Vice Preside Upon retirement, she is entiearch, Jil G Sunrise industries wishes year payment of $44,000 for exactly 20 years. If she dies prior to the her heirs Ms. Garza, by contract, will retire at the end of exactly 12 years into an account earning 9%...
plz solve
Q3.) A lump sum cash flow at end of year I is x, then decreases an amount IG every year until end of gear 8 as the last cash flow. What is the equivalent future value at end of year 8 for all o cash flows from year I to year & above with the annual interest of 6% x= 6000 G=200 is 6%
Assume that you are looking at an investment opportunity that offers an annual operating cash flow of $40,000 per year for 4 years. The initial investment to purchase the necessary equipment is $200,000. You assume that you can sell the equipment at the end of 4 years for $70,000. Also, there is a need for an investment in net working capital of $15,000. If the required rate of return is 5%, and the tax rate is 35%, would you accept...
24. Your grandmother is gifting you $125 a month for four years while you attend college to earn your bachelor's degree. At a 6.5 percent discount rate, what are these payments worth to you on the day you enter college? A. SS 201.16 B. 58.270.94 C. 55,509.19 D. 55,608.87 25. At 8 percent interest, how long would it take to quadruple your money? A 16.95 1664 C 1709 D. 18.01 26. You are considering two loans. The terms of the...
For the following cash flow diagram, with 10% per year, Find a) The equivalent single (lump sum) cash flow at end of year 4 (18 points) b) The amount of the uniform annual equivalent cash flows (annuity) at the ends of years 1 to 5 (7 points) $700 00$200 0 5 $200 $500! $800
9. You won the lottery and you are scheduled to receive 30 annual payments of $100,000, starting next year. If your opportunity cost of money is 12% and you asked to receive your prize in cash today as a lump-sum payment, how much would you take home?
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...
Future Value of Uneven Cash Flow 22. 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 future value of this uneven cash flow stream? a. $2,636 23. 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...
Most questions answered within 3 hours.
-
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 34 minutes ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 33 minutes ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 36 minutes ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 45 minutes ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 47 minutes ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 53 minutes ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 56 minutes ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 1 hour ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 1 hour ago -
1. Describe the four main green solvents. Provide one example of
the use of each solvent....
asked 1 hour ago -
International ethics focus on:
1) exploitation of labor
2)corruption
3) environmental impact
4) none of the...
asked 1 hour ago -
Costing Models You work for XYZ trucking and your boss has asked
you to figure out...
asked 1 hour ago