CHAPTER 5 – The Value of Money
CHAPTER 5 – The Value of Money
P5 – 33 Present value: Mixed Streams – Consider the mixed streams of cash flows shown in the following table
_____Cash flow stream_____
Year A B______
0 -$50,000 $10,000
1 $40,000 $20,000
2 $30,000 $30,000
3 $20,000 $40,000
4 $10,000 -$50,000
Totals $50,000 $50,000
a. Find the present value of each stream using a 5% discount rate.
b. Compare the calculated present values and discuss the 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?
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Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table....
Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table. Cash flow stream Year $50,000 $10,000 20,000 30,000 30,000 20,00040,000 -50,000 Totals $50,000 $50,000 0 40,000 4 10,000 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 undis- flows totaling $50,000 in each case. Is there some discount rate at counted cash which the present values of...
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...
there is no initial amount. Everything that you need is there, you do not need anything...
there is no initial amount. Everything that you need is there, you
do not need anything else.
P5-31 Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table. Year Cash flow stream B $-50,000 $10,000 40,000 20,000 30,000 30,000 20,000 40,000 10,000 -50,000 $150,000 $150,000 Totals 75% a. Find the present value of each stream using a 8% discount rate. b. Compare the calculated present values and discuss them in light of the undis-...
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...
please help and answer each part!! ill give feedback! Present value Mixed streams Consider the mixed...
please help and answer each part!! ill give feedback!
Present value Mixed streams Consider the mixed streams of cash flows shown in the folowing table a. Find te present value of each stream using a 7% discount rate. b. Compare the caloulated present values and discuss them in light of S the undnoounted cash fows totaling $50,000 in each case, Is thore some discount rate at which the present values of the two streams would be The present value of...
a. Find the valte of each steam usng a 7% discount tate discuss them in light...
a. Find the valte of each steam usng a 7% discount tate discuss them in light of thie undiscounted cash flows totaling $60,000 in each case. Is thore some discount rate af which the present values of the two streams would be equal? Data Table (Click on the icon S- 45,000 $37,500 $22.500 $30,000 $22,500 $37 500 $15,000 $-45,000 Enter Totals $80,000 6000 2 Activity Details You have viewed this topic 으 o search
4 P5-35 Relationship between future value and present value: Mixed stream The table below shows a...
4 P5-35 Relationship between future value and present value: Mixed stream The table below shows a mixed cash flow stream except that the cash flow for year 3 is missing. $10,000 5,000 Year 1 Year 2 Year 3 Year 4 Year 5 20,000 3,000 PART 2 Financial Tools Suppose that somehow you know that the present value of the entire stream is $32,911.03 and that the discount rate is 4%. What is the amount of the missing cash flow in...
P5-30 Value of a mixed stream For each of the mixed streams of cash flows shown in the following table, calculate the f...
P5-30 Value of a mixed stream For each of the mixed streams of cash flows shown in the following table, calculate the future value at the end of the final year if deposits are made into an account paying annual intertest of 8%. Assume that no withdrawls are made during the period and that the deposits a. At the end of each year (i.e., the first deposit b. At the beginning of each year (i.e., the first deposit are made...
Q 42,43,44,45,47 CHAPTER 6 The Time Value of Money 219 Perpetulties 6-42. Calculating the present value...
Q
42,43,44,45,47
CHAPTER 6 The Time Value of Money 219 Perpetulties 6-42. Calculating the present value of a perpetuity) (Related to Checkpoint page 206) What is the present value of the following? a. A $300 perpetuity discounted back to the present at 8 percent b. A $1,000 perpetuity discounted back to the present at 12 percent C. A $100 perpetuity discounted back to the present at 9 percent d. A $95 perpetuity discounted back to the present at 5 percent...
Relationship between future value and present value: Mix stream. Using the information in the accompanying table,...
Relationship between future value and present value: Mix stream. Using the information in the accompanying table, answer the questions that follow. Year Cash flow 0 $0 1 800 2 900 3 1000 4 1500 5 2000 a. Determine the present value of the mixed stream of cash flows, using a 5% discount rate. b. Suppose you had a lump sum equal to your answer in part (a) on hand today. If you invested this sum for 5 years and earned...
Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table. Cash flow stream Year $50,000 $10,000 20,000 30,000 30,000 20,00040,000 -50,000 Totals $50,000 $50,000 0 40,000 4 10,000 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 undis- flows totaling $50,000 in each case. Is there some discount rate at counted cash which the present values 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...
there is no initial amount. Everything that you need is there, you
do not need anything else.
P5-31 Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table. Year Cash flow stream B $-50,000 $10,000 40,000 20,000 30,000 30,000 20,000 40,000 10,000 -50,000 $150,000 $150,000 Totals 75% a. Find the present value of each stream using a 8% discount rate. b. Compare the calculated present values and discuss them in light of the undis-...
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...
please help and answer each part!! ill give feedback!
Present value Mixed streams Consider the mixed streams of cash flows shown in the folowing table a. Find te present value of each stream using a 7% discount rate. b. Compare the caloulated present values and discuss them in light of S the undnoounted cash fows totaling $50,000 in each case, Is thore some discount rate at which the present values of the two streams would be The present value of...
a. Find the valte of each steam usng a 7% discount tate discuss them in light of thie undiscounted cash flows totaling $60,000 in each case. Is thore some discount rate af which the present values of the two streams would be equal? Data Table (Click on the icon S- 45,000 $37,500 $22.500 $30,000 $22,500 $37 500 $15,000 $-45,000 Enter Totals $80,000 6000 2 Activity Details You have viewed this topic 으 o search
4 P5-35 Relationship between future value and present value: Mixed stream The table below shows a mixed cash flow stream except that the cash flow for year 3 is missing. $10,000 5,000 Year 1 Year 2 Year 3 Year 4 Year 5 20,000 3,000 PART 2 Financial Tools Suppose that somehow you know that the present value of the entire stream is $32,911.03 and that the discount rate is 4%. What is the amount of the missing cash flow in...
P5-30 Value of a mixed stream For each of the mixed streams of cash flows shown in the following table, calculate the future value at the end of the final year if deposits are made into an account paying annual intertest of 8%. Assume that no withdrawls are made during the period and that the deposits a. At the end of each year (i.e., the first deposit b. At the beginning of each year (i.e., the first deposit are made...
Q
42,43,44,45,47
CHAPTER 6 The Time Value of Money 219 Perpetulties 6-42. Calculating the present value of a perpetuity) (Related to Checkpoint page 206) What is the present value of the following? a. A $300 perpetuity discounted back to the present at 8 percent b. A $1,000 perpetuity discounted back to the present at 12 percent C. A $100 perpetuity discounted back to the present at 9 percent d. A $95 perpetuity discounted back to the present at 5 percent...
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