Calculation of Present Value:
Present value = Expected Cash Flow ÷ (1+Discount Rate)^Number of periods
(a) Stream A:
Year Amount PVF @ 8% Present Value
0 $0 1 0
1 $100 0.9259 $92.59
2 $450 0.8573 $385.80
3 $450 0.7938 $357.22
4 $450 0.7350 $330.76
5 $250 0.6805 $170.14
Total $1336.529
Stream B:
Year Amount PVF @ 8% Present Value
0 $0 1 0
1 $250 0.9259 $231.48
2 $450 0.8573 $385.80
3 $450 0.7938 $357.22
4 $450 0.7350 $330.76
5 $100 0.6805 $68.05
Total $1373.33
(b)Stream A:
Year Amount PVF @ 0% Present Value
0 $0 1 $0
1 $100 1 $100
2 $450 1 $450
3 $450 1 $450
4 $450 1 $450
5 $250 1 $250
Total $1700
Stream B:
Year Amount PVF @ 0% Present Value
0 $0 1 $0
1 $250 1 $250
2 $450 1 $450
3 $450 1 $450
4 $450 1 $450
5 $100 1 $100
Total $1700
a. Find the present values of the following cash flow streams at an 8% discount rate....
Find the present values of the following cash flow streams at a 6% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent.012345Stream A: $ Stream A$0$100$400$400$400$250Stream B$0$250$400$400$400$100Stream B: $ What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar.Stream A: $ Stream B: $
a. Find the present values of the following cash flow streams at a 4% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A Stream B Stream A: $ $0 $0 $150 $300 $350 $350 $350 $350 $350 $350 $300 $150 Stream B: $ b. What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $ Stream...
UNEVEN CASH FLOW STREAMFind the present values of the following cash flow streams at an 8% discount rate. Round your answers to the nearest cent.012345Stream A $ Stream A$0$150$450$450$450$300Stream B$0$300$450$450$450$150Stream B $ What are the PVs of the streams at a 0% discount rate?Stream A $ Stream B $
eBook Problem Walk-Through a. Find the present values of the following cash flow streams at a 3% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 + Stream A $0 $100 $400 $400 $400 $250 Stream B $0 $250 $400 $400 $400 $100 Stream A: $ Stream B: $ b. What are the PVs of the streams at a 0% discount rate? Round your answers to the pearest dollar Stream...
part 1 Find the present values of the following cash flow streams at a 10% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A $0 $100 $350 $350 $350 $300 Stream B $0 $300 $350 $350 $350 $100 Stream A $ Stream B $ What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A $ Stream...
a. Find the present values of the following cash flow streams at a 5% discount rate. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A Stream B Stream A $ $0 $0 $100 $300 $350 $350 $350 $350 $350 $350 $300 $100 Stream B $ b. What are the PVs of the streams at a 0% discount rate? Stream A $ Stream B $
15. aFind the present values of the following cash flow streams at a 6% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A $0 $100 $450 $450 $450 $300 Stream B $0 $300 $450 $450 $450 $100 Stream A: $ Stream B: $ What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $ Stream B:...
Find the present values of the following cash flow streams. The appropriate interest rate is 12%. (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 huge dividends throughout the course. Note that, when working with the...
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 $
1)Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $200 per year for 16 years at 12%. $ $100 per year for 8 years at 6%. $ $1,000 per year for 8 years at 0%. $ Rework previous parts assuming they are annuities due. Present value of $200 per year for 16 years at 12%: $ Present value of $100 per year for 8...