The present value of the following cash flow stream is $6.820 when discounted at 7 percent...

Question

Question

Answer 1

Answer #1

Given,

Year 1 cash flow (CF₁) = $1000

Year 2 cash flow (CF₂) = ?

Year 3 cash flow (CF₃) = $1300

Year 4 cash flow (CF₄) = $1900

Discount rate (r) = 7% or 0.07

Present value of cash flows = $6820

Solution :-

Add a comment

Answer 2

Similar Homework Help Questions

The present value of the following cash flow stream is $7,200 when discounted at 10 percent...

The present value of the following cash flow stream is $7,200 when discounted at 10 percent annually. What is the value of the missing cash flow at year 2? Year Cash Flow 1 3,100 2 3 2,200 4 1,500 A. $2,500 B. $2,250 C. $2,062 D. $1,952 E. $1,842 Please help urgently. No work needs to be shown.
The present value of the following cash flow stream is $2,487.24 when discounted at 12 percent...

The present value of the following cash flow stream is $2,487.24 when discounted at 12 percent annually. What is the value of the missing (t=2) cash flow?
The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent...

The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent annually. What is the value of the missing cash flow? (Please show work)

(5 pts) 25. The present value of the following cash flow stream is $5,933.86 when discounted...

(5 pts) 25. The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent annually. What is the value of the missing cash flow? Year $2,000 1,750 1,250 4 Problems 9 and 10 are connected. 9. A major car manufacturing firm issues a 20 year $1,000,000 bond at par. The bond pays a 6% (APR) semiannual coupon. 5 years later, the Federal Reserve Board cuts the fed funds rate, causing interest rates for similar firms...
a. What is the present value of the following set of cash flows, discounted at 10.8...

a. What is the present value of the following set of cash flows, discounted at 10.8 % per year? a. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year - CF $8 $19 $19 $30 b. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year CF $52 $41 $30 $ 19 9 8 c. Each set contains the same cash flows ($8,...
What is the Net Present Value of the following cash flow stream? Year Cash Flow 0...

What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 -$6,119 1 $1,333 2 $1,395 3 $1,160 4 $2,709 Assume an interest rate of 20%

What is the present value of the following set of cash flows, discounted at 15% per...

What is the present value of the following set of cash flows, discounted at 15% per year? Year 3 $100 - $100 $200 - $200 CF The present value of the cash flow stream is $ (Round to the nearest cent.)
26- What is the present value of the following cash flow stream at a rate of...

26- What is the present value of the following cash flow stream at a rate of 13.5%? Years: 0 1 2 3 4 CFs: $0 $1,500 $3,000 $4,500 $6,000 27- What is the future value of the following cash flow stream at a rate of 13.5%? Years: 0 1 2 3 4 CFs: $0 $1,500 $3,000 $4,500 $6,000
What is the present value of the following cash-flow stream if the interest rate is 5%?...

What is the present value of the following cash-flow stream if the interest rate is 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Year Cash Flow 1 $ 250 2 450 3 350 Present value $

PRESENT VALUE OF A CASH FLOW STREAM An investment will pay $100 at the end of...

PRESENT VALUE OF A CASH FLOW STREAM An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 9% annually, what is its present value? Round to TWO decimal places.