1. An investment of $12,000 for 25 years at 6% nominal interest is done, with an...
1. An investment of $12,000 for 25 years at 6% nominal interest is done, with an expected revenues determine by arithmetic gradient sequence of g-$1200 beginning on year 4 to year 25 of the cash flows. Determine the Present Value PW
The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $500,000. If the gradient, G, increases each year at $3,000 per year, determine the present worth of the uniform series only, at an interest rate of 10% per year.
20 An investment paying $1000 in 1 year, $2000 in 2 years and
$7000 in 3 years returning 10% p.a. has a present value of:
a. $8129.39
b. $6002.54
c. $7210.20
d. $7821.19
21. An investment paying $2000 in 2 year, $6000 in 4 years and $5000 in 12 years at an interest rate of 5% p.a. has a present value of: a. $7906.86 b. $6505.29 c. $7354.21 d. $12 090.49 22 Cash flows of $5000 in 2 years and...
The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $700,000. If the gradient increase each year, G, is $2750, determine the cash flow in year 1 at an interest rate of 10% per year.
Referencing the Relations for Discrete Cash Flows with End of Period Compounding posted as a guide, and given: an arithmetic gradient value, G = $5,000, an interest rate, i=10% per year, and a time period, n=5 years, and a Present Worth, P=?, that is unknown, (a) construct a cash flow diagram (CFD), and (b) calculate the unknown Present Worth, P=?, using the Arithmetic Gradient Present Worth formula, showing all algebraic steps in your Solution.
1.) An investment in manufacturing equipment yields the following cash flows for 8 years. At the end of the 8th year the equipment can be sold for $15,000. Assuming an interest rate of 14% (compounded annually), how much would you be willing to invest in this manufacturing equipment? C=? I=2000 I=2000 I=2000 I=2000 I=1000 I=1000 I=1000 I=1000 L=$15,000 0 1 2 3 4 5 6 7 8 C: Cost, I: Income, L: Salvage Value 2.) Suppose that the nominal annual...
Ch.15_104_005. A $350,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows: Year Net Cash Flow Year Net Cash Flow $150,000 $104,000 130,000 90,000 The minimum desired rate of return for net present value analysis is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. Determine the net present value.
The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $575,000. If the gradient increase each year, G, is $1750, determine the cash flow in year 1 at an interest rate of 11% per year. The cash flow in year 1 is $ .
"You receive a $40,000 car LEASE at 5% nominal annual terest for 4 years. Interest is comp ounded monthly and yo make month pay m s. ou RESID aTue at the end of your lease is $12,000. Assume LEASE payments are made at the END of the month, with the first payment due at the end of the 1st month. You can also get a LOAN for the same terms (although you will pay off the entire car in 4...
1. Pam, when she turned 25, made an investment of $20,000 at an interest rate of 6.5% compounded semi-annually. Now that she is 50 years old, how much is the investment worth now. A) $53,250 B) $44,491.96 C) $32,500 D) $98,976.71 2. For the cash flows shown table below, evaluate the unknown value, X for an interest rate of 6% compounded annually. Year I 0 I 1 I 2 20,000 -5,000 -10,000 61 X Cash Flow in $ A) $5,000...