Use Excel to calculate the expected present value of the following cash flows using a 5% discount rate? Be prepared to explain how you calculated your answer.
Homework Answers
| Year 1 Expected Cash flow =$1500*10%+$2000*50%+$2500*40% = | $ 2,150.00 | ||
| Year 2 Expected Cash flow =$3300*15% +$3600*40%+$4000*45%= | $ 3,735.00 | ||
| Let us find the PV of Expected Cash flows | a | b | |
| Year | Expected Cash flow | PV Factor @5%=1/1.05^n | PV of expected Cash flow =a*b |
| 1 | $ 2,150.00 | 0.9524 | $ 2,047.66 |
| 2 | $ 3,735.00 | 0.9070 | $ 3,387.65 |
| Total =PV= | $ 5,435.31 | ||
| So PV of Expected Cash flows =$5,435.31 |
Add Answer to:
Use Excel to calculate the expected present value of the
following cash flows using a 5%...
Consider the following cash flows (see the attached Excel sheet) and answer the following questions. Show...
Consider the following cash flows (see the attached Excel sheet)
and answer the following questions.
Show your work in Excel.
a) What is the net present value (NPV) if the opportunity cost
of cost of capital is 10%?
b) Add an outflow of $2000 at time 0 and lower the opportunity
cost of capital to 6%. Now, what is the net present value?
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Consider the following cash flows (see the attached Excel sheet)
and answer the following questions.
Show your work in Excel.
a) What is the net present value (NPV) if the opportunity cost
of cost of capital is 10%?
b) Add an outflow of $2000 at time 0 and lower the opportunity
cost of capital to 6%. Now, what is the net present value?
B A Parta) Year Cash Flow $2,000 $2,000 $1,500 $2,500 $4,000 5 Cost of Capit 10% NPV...
Consider the following cash
flows (see the attached Excel sheet) and answer the following
questions.(see attached pic) a) What is the net present value (NPV)
if the opportunity cost of cost of capital is 10%? b) Add an
outflow of $2000 at time 0 and lower the opportunity cost of
capital to 6%. Now, what is the net present value?
M N O 1 Parta) 2 Year Cash Flow 0 $ 2,000 1 $ 2,000 2 $ 3 $ 1,500...
14. The following table shows the cash flow for the costs of the Self Performing Contractor and estimates for revenues from a residential project. (in x1000 TL) a) Calculate the Net Cash Flow and the Cumulative Cash Flow for the project (2 points) b) What is the payback period for the project? (2 points) c) What is the Net Present Value (NPV) of the project to the Self Performing Contractor, if the discount rate is i=7% (3 points). d) Would...
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