What is the uninflated present worth of $5000 in 3 years if the average inflation rate...
asked you to prepare a Present worth calculation adjusted for inflation for the next 3 dicts inflation to be 4.5% per year and the real interest rate to be 12% per year. The below table is what he wants you to fill out. What would be the cost in future dollars, future 6. Your CEO years. He pre t in constant value dollars and the present worth at the real interest rate after 3 years cos (SHOW ALL CALCULATION)? (10pts)...
What is the present value of $5000 that you will get after 10 years , discounting at the rate of 5% per year is?
15. Total inflation rate for the last 30 years is 125%. What is the annual average inflation rate?
15. Total inflation rate for the last 30 years is 125%. What is the annual average inflation rate?
Problem (5): An investment pays $ 30,000 after five years. a) If the annual inflation rate is 8%, what is the real value of the $30,000 in today's dollars? b) If the annual inflation rate is 8% and the real interest rate is 12%, what is the present worth of the investment return? c) What Actual-dollar interest rate is equivalent to a real interest rate of 12% when the annual inflation rate is 8% d) Compute the present worth using...
1. (a) What is the present worth of $10,000 payments made each year at a nominal interest rate of 6%, compounded semi-annually (i.e., twice per year)? (10 points) i. For a period of 50 years? (2 points) ii. In perpetuity? (2 points) (b) What is the present worth of $10,000 payments made biannually i.e., every two years) at a nominal interest rate of 6%? a) For a period of 50 years? (2 points) b) in perpetuity (2 points)
Calculate x that makes the present worth of the following cash flow at interest rate equals 10 % equals to $22222? please in the fastest way and the easiest way 10000 2000 3000 4000 5000 X х X X 0 1 2 3 4 5 6 7 8
Develop a spreadsheet to determine the next present value or present worth of the following project: Investment: 170,000 Revenue/Savings: 32,000 Incremental Expense/Cost: 6,000 Salvage Value: 20,000 Project Life: 10 years MACRS Schedule: 7 years Tax Rate: 24% MARR: 12% Inflation: 3% Complete this on the basis of a real dollars basis rather than actual dollars. Is this a good investment to make? Year Percent 1 14.29% 2 24.49% 3 17.49% 4 12.49% 5 8.93% 6 8.92% 7 8.93% 8 4.46%
A series of equal quarterly payments of $5000 for 12 years is equivalent to what present amount an interest rate of 9% compounded a) Quarterly? b) Monthly? c) Continuously? Please explain
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points) Pg=. 2 - 8v. Sop VVVV. 72 70 Now $s < 4. The equivalent present worth of a geometric gradient series of cash flows for 10 years was found to be $19,776. If the interest rate was 15% per year and the...