Which is worth more today:
a.Which is worth more today:
b.Which is worth more in the year given:
c. In the question above (#9), what is each worth today, use the same discount rates indicated:
_________________
_________________
show all work
To find which is worth more today out of the two options, we need to calculate the PV of the same:
r | 4.00% |
n | 10 |
frequency | 1 |
FV | $ 450.00 |
r | 5.00% |
n | 6 |
frequency | 1 |
FV | $ 400.00 |
Which is worth more today: $450 in 10 years assuming a 4% discount rate $400 in...
How much is $1 million received in 100 years worth today, assuming a 10% required rate of return?
2. Which amount is worth more today at 14% interest rate: $1,300 in hand today or $2,500 due in five years?
Which of the following statements is INCORRECT? A) In general, money today is worth more than money in one year. B) We define the risk-free interest rate, rf for a given period as the interest rate at which money can be borrowed or lent without risk over that period. C) We refer to (1 - rf) as the interest rate factor for risk-free cash flows. D) For most financial decisions, costs and benefits occur at different points in time. Suppose...
USING discount time value of money and assuming the rate the rat of iz 10% find the ent the pro present at PW of the Fw line worth the end find worth and future value 17 the indiuntual shich Compromises years) of the following cash flow diagram engineering project, which compromised flows and annuities A. Use the compounding tables to show Calculations. Cash factor show your calculation. A=$3,000 PW? A: time series Credits FW? 2.15 16 17 yearends 0 1...
the company has the following future cash flows year 1: 300$ year 2: 450$ year 3: 500$ year 4: 600$ year 5: 625$ year 6: 750$ 6. What is the Present Value of the company's Discounted Cash Flow assuming you can get a) a safe return of 5% in the market? Calculate each year's PV in the spaces provided above. Present Value of Discounted Cash Flows: What is the Net Present Value of this company if you pay $2,500 for...
You can purchase an optical scanner today for $500. The scanner provides benefits worth $80 a year. The expected life of the scanner is 10 years. Scanners are expected to decrease in price by 20% per year. Suppose the discount rate is 12%. When is the best time to purchase the scanner? (Round your answer to the nearest cent.) NPV is maximized when you wait ____ (choose from 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10) years...
Calculate the NPV for the following investment with 6 years life time assuming a discount rate of 20% per year: The investor is a Non-integrated petroleum company Total producible oil in the reserve is estimated to be 2,400,000 barrels Production rate will be 400,000 barrels of oil per year from year 1 to year 6 Mineral rights acquisition cost for the property will be $1,600,000 at time zero Intangible drilling cost (IDC) is expected to be $7,000,000 at time zero...
1. You were promised a payment of $400 for each of the next four years to be received at the end of the year. What is the fair value of these payments if the interest rate is 6%? 2. Which of the following is a reason why a dollar today is worth more than a dollar two years from now? a) A dollar today can be put in the bank and charged interest. b) Individual people generally value c) consumption...
Discounted payback period) Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project with an initial outlay of $100,000 and the following cash flows? Year 1 $30,000 Year 2 $35,000 Year 3 $25,000 Year 4 $25,000 Year 5 $30,000 Year 6 $20,000 The project's discounted payback period is years. (Round to two decimal places.)
Decision #1: Which set of Cash Flows is worth more now? Assume that your grandmother wants to give you generous gift. She wants you to choose which one of the following sets of cash flows you would like to receive: Option A: Receive a one-time gift of $ 10,000 today. Option B: Receive a $1400 gift each year for the next 10 years. The first $1400 would be received 1 year from today. Option C: Receive a one-time gift of...