Unanswered Question 7 0/1 pts Consider the following cash flow diagram: 30,000 20,000 15,000 10,000 o...
Write the expression for the cash flow.
7) (25 points) First draw a cash flow diagram for the cash flow series shown below. Then write an expression (e.g., P 500(P/A 5%, 3)+100(P/G 5%, 3) + ...) for the present worth of the following cash flow series. You must use at least one uniform series factor, one arithmetic gradient series factor, and one geometric gradient series factor. i=5% per period. No calculations are needed. EOY Cash Flow 4 5,00025,000 15,000 13,500...
1) (12 pts) The following is a cash flow diagram: Cash Flows: 20000 10000 Cash Flow $35,000 $5,000 $7,500 $1000 $10,000 $5,000 Year 0 1 2 4 >-10000 -20000 30000 40000 Years 4 Annual Interest rate = 10%, compounded annually a) Calculate the Present wortlh b) Calculate the equivalent annuity for these cash flows c) Calculate the future worth of these cash flows at 5 years
6) (12 pts) Given the cash flow diagram below: $500 $400 $350 $300 A 0 456 789 a) What is A if the present worth 0 and 1 10%? b.) What is the future worth at 9 years if A--$100? c) What is the equivalent annual worth (EAW) over 9 years if A--$100 and 1-10%?
3) (20 points) EOY 0 Net Cash Flow $10,000 incroa+$1,000 ng mac+$1,350 eful li+$1,700 +$2,050 500 a+$1,000 p+$2,000 +$2,200 +$2,420 1 2 3 4 5 Ole Ope 6 7 For the cash flow profile given above, an expression showing the present worth for an interest rate of 5 % per year compounded annually is PW = (PIA 5%,)+ + (P/G 5%,)+ ( P/F 5%,, (P/A1 D}_5%, 5) 5%,
everything the same but project G’s year 2 cash flow is $20,000
and H’s year 2 cash flow is $20,000. The cost of capital is
12%
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286 PART 4: CAPITAL EXPENDITURE ANALYSIS istics: 13-3 Two mutually exclusive projects have the following characteristic 2 9000 Year 3 $20,000 Year 4 $5,000 Project Year 0 Year 1 Year 2 Year 3 -$30,000 $15,000 $10,000 $20,000 - 20,000 18,000 10,000 The cost of capital is 10 perce of capital is...
QUESTION 7 Consider the following cash flows: Year Cash Flow 0 -$10,000 1 $1,000 2 $2,000 3 $3,000 4 $4,000 5 $5,000 Which equation would you use to compute the IRR? 1. -$10000 + $1000(P/G, i, 5) = 0 2. -$10,000 + $1,000 * (P/A, i, 5) + $1,000 * (P/G, i, 5) = 0 3. -$10,000 + $1,000 + $1,000 * (P/G,i,5) = 0 4. None of the above
QUESTION 1 Ahmad opened a Bike Repair Shop. He shared his Net Cash Flow (NCF) figures for 3 years, including the $17,000 amount that it took to get started in business. (a) Choose the correct rate of return equation Year Net Cash Flow, $ -17,000 20,000 -5,000 8000 0 = -17.000 + 20.000(P/F,*,1) - 5000(P/F.i* 2) + 8000(P/F.j* 3) 0 = -17,000+ 15,000(P/F..*.1) + 8000(P/F.* 3) 0 = -17.000 + 20,000(P/F.,*,1) + 8000(P/F.1* 3) 0 = -17.000 + 20,000(P/F,*,1)+ 3000(P/F.1*,3)
Problem 4: For the accompanying cash flow diagram as shown in the following figure, find: 1. The present worth value P 2. The equivalent annual uniform series value A 3. The future worth value F $800 S700 S600 500 $400 个 S300 S200 S100 10%
Q4. Consider the following three projects cash flow Model A B C Purchase Cost $10,000 $15,000 $20,000 Annual Operation Cost $1,000 $800 $1,200 Annual Revenue $2,800 2,900 $4,000 Salvage Value $1, 000 2,000 3000 Useful Life 10 Years 10 Year 10Years a- Calculate the Internal Rate of Return (IRR) for each cash flow?(5 marks) b- If MARR is 10%; which project should be selected? (5 marks) Please dont use excel for solving
2. Solve the following problem using Ann Two pieces of construction equipment are being analyzed ual Cash Flow Analysis: (10) Year Alternative A Alternative B $200,000 $200,000 10,000 2 -20,000 3 15,000 30,000 30000 10,000 20,000 45,00030,000 40,00050,000 50,000 20,000 At 11% interest rate, which alternative should be selected?
2. Solve the following problem using Ann Two pieces of construction equipment are being analyzed ual Cash Flow Analysis: (10) Year Alternative A Alternative B $200,000 $200,000 10,000 2 -20,000 3...