You have an opportunity to make an investment that will pay $100 at the end of the first year, $400 at the end of the second year, $400 at the end of the third year, $400 at the end of the fourth year, and $300 at the end of the fifth year.
a. Find the present value if the interest rate is 8 percent.
b. What would happen to the present value of this stream of cash flows if the interest rate were 0 percent?
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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...
Find the present values of the following cash flow streams. The appropriate interest rate is 13%. Round your answers to the nearest cent. (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...
Find the present values of the following cash flow streams. The appropriate interest rate is 13%. Round your answers to the nearest cent. (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...
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Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent. (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...
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PART 1: The present value of an ordinary annuity is $13,000. What would be the present value of this annuity if the payments were to be received at the beginning of each period? Assume the interest rate is 18%. A. $16,500 B. $13,636 C. $15,340 D. Insufficient information to determine – we need to know the specific cash flows and the timing PART 2: If you were offered a stream of cash flows of $1500 per year forever and the...
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42,43,44,45,47
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