Choose the best answer for the following: Given a set of even future cash flows, you...
Choose the best answer for the following: Given a set of even future cash flows, you can
Select one:
a. Use a financial calculator to calculate their NPV using the CFj, I/YR and NPV keys.
b. Use a financial calculator to calculate their PV without using the NPV, CFj and NPV keys.
c. Use a financial calculator to calculate their FV
d. All of the above.
e. a and c only
Homework Answers
option (d) i.e all of the above is the correct answer.
A financial calculator can be used for simplification of various financial calculations such as computing Net present value, Present value as well as the future value.
Incase of any doubt, please comment below. I would be happy to help.
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Choose the best answer for the following: Given a set of even
future cash flows, you...
Find IRR for following cash flows: 0_____1_
Find IRR for following cash flows: 0_____1_____2_____3_____4 ($100) $10 $10 $10 $110 a) use calculator, make sure that you know the procedure. p/yr=____, N=____, PMT=_____, FV=_____,PV=_____, IRR=____% per period. b) use spreadsheet, make sure that you know the procedure Show spreadsheet printout c) use intuition: if initial cashflow is changed to (90) the IRR will be Higher/lower because _________________________________ Hint: Consider the impact of a higher discount rate on the PV of a...
what is the Present Value of an asset that pays the following cash flows, if you...
what is the Present Value of an asset that pays the following cash flows, if you can invest them at a rate of return of 5%? Time Period Cash Flow 0 2 4 75 75 75 75 75 Note: this is an 'ordinary annuity', it is the default assumption for both Excel and your financial calculator. a) Identify the assumptions given in this problem Rate of Return # of years Annual Payment Future Value b) Solve this problem using the...
Find the Future Value (FV) of the following set of unequal cash flows: Year 1: 1,000;...
Find the Future Value (FV) of the following set of unequal cash flows: Year 1: 1,000; Year 2: 1,500; Year 3: 0; Year 4: 2,500; Year 5: 3,000. Assume a 6% interest rate. Try to solve the problem using both algebra and the cash flow worksheet on the calculator. Select one: O a. $7,017.54 O b. $8,721.08 O c. $10,576.68 O d. $9,210.60 e. $8,322.01
Find PV for following cash flows using a discount rate of 10% per period, all periods...
Find PV for following cash flows using a discount rate of 10% per period, all periods are of the same (but unspecified) duration. 0_____1_____2_____3_____4 $10 $10 $10 $110 a) use calculator, make sure that you know the procedure. p/yr=____, N=____, PMT=_____, i=____, FV=_____, PV=_____ b) use spreadsheet, make sure that you know the procedure Show spreadsheet printout c) use intuition: PV=_____because ____________________ Hint: Compare coupon rate and discount rate. d)...
Calculate the future value at year 4 of the cash flows on the timeline below. The...
Calculate the future value at year 4 of the cash flows on the timeline below. The relevant rate is 6%. (Enter only numbers and decimals in your response. Round to 2 decimal places.) the other oz. HII II An investment will pay you $5000 in 5 years if you pay $3035 today. What is the implied rate of return? (Enter only numbers and decimals in your response. Round to 2 decimal places.) TVM Practice - CH 1, 2, & Annuities...
Future values. Fill in the future values for the following table, using one of the three...
Future values.
Fill in the future values for the following table, using one of
the three methods below:
a. Use the future value formula,
FV equals PV times left parenthesis 1 plus r right parenthesis
Superscript nFV=PV×(1+r)n.
b. Use the TVM keys from a calculator.
c. Use the TVM function in a spreadsheet.
Number of Periods Future Value Present Value $282.00 $17,476.00 $37,595.00 $27,545.00 Interest Rate 4% 7.5% 11% 16% 26
For the following set of cash flows
For the following set of cash flows, YearCash Flow0–$6,300 14,500 23,300 34,500 Required:(a)What is the NPV at a discount rate of 0 percent?(Click to select)$6,300$5,700$6,180$5,820$6,000.00 (b)What is the NPV at a discount rate of 12 percent?(Click to select)$3,729.19$3,551.61$3,374.03$3,658.16$3,445.06 (c)What is the NPV at a discount rate of 25 percent?(Click to select)$1,767.48$1,630.2$1,716$1,646.88$1,801.8(d)What is the NPV at a discount rate of 30 percent?(Click to select)$1,162.45$1,104.33$1,220.57$1,197.32$1,127.58
Your firm has identified three potential investment projects. The projects and their cash flows are shown...
Your firm has identified three potential investment projects. The projects and their cash flows are shown here: (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project Cash Flow Today (millions) Cash Flow in One Year (millions) A -$15 $$16 B $4 $3 C $17 −$11 Suppose all cash flows are certain and the risk-free interest rate is 6%. a. What is the NPV of each...
What is the IRR of the following set of cash flows? PLEASE SHOW ANSWER USING FINANCIAL...
What is the IRR of the following set of cash flows? PLEASE SHOW ANSWER USING FINANCIAL CALCULATOR WITH ALL STEPS, THANK YOU! Year Cash Flow 0 -4,000 1 1,500 2 2,100 3 2,900
A project requires, as its only cost, an initial investment of $17,000. It then generates positive future cash flows. Th...
A project requires, as its only cost, an initial investment of
$17,000. It then generates positive future cash flows. The
appropriate discount rate is 22%. This project has an NPV of -$935
(negative NPV). What can you say about this project’s IRR?
A project requires, as its only cost, an initial investment of $17,000. It then generates positive future cash flows. The appropriate discount rate is 22%. This project has an NPV of -$935 (negative NPV). What can you say...
what is the Present Value of an asset that pays the following cash flows, if you can invest them at a rate of return of 5%? Time Period Cash Flow 0 2 4 75 75 75 75 75 Note: this is an 'ordinary annuity', it is the default assumption for both Excel and your financial calculator. a) Identify the assumptions given in this problem Rate of Return # of years Annual Payment Future Value b) Solve this problem using the...
Find the Future Value (FV) of the following set of unequal cash flows: Year 1: 1,000; Year 2: 1,500; Year 3: 0; Year 4: 2,500; Year 5: 3,000. Assume a 6% interest rate. Try to solve the problem using both algebra and the cash flow worksheet on the calculator. Select one: O a. $7,017.54 O b. $8,721.08 O c. $10,576.68 O d. $9,210.60 e. $8,322.01
Calculate the future value at year 4 of the cash flows on the timeline below. The relevant rate is 6%. (Enter only numbers and decimals in your response. Round to 2 decimal places.) the other oz. HII II An investment will pay you $5000 in 5 years if you pay $3035 today. What is the implied rate of return? (Enter only numbers and decimals in your response. Round to 2 decimal places.) TVM Practice - CH 1, 2, & Annuities...
Future values.
Fill in the future values for the following table, using one of
the three methods below:
a. Use the future value formula,
FV equals PV times left parenthesis 1 plus r right parenthesis
Superscript nFV=PV×(1+r)n.
b. Use the TVM keys from a calculator.
c. Use the TVM function in a spreadsheet.
Number of Periods Future Value Present Value $282.00 $17,476.00 $37,595.00 $27,545.00 Interest Rate 4% 7.5% 11% 16% 26
A project requires, as its only cost, an initial investment of
$17,000. It then generates positive future cash flows. The
appropriate discount rate is 22%. This project has an NPV of -$935
(negative NPV). What can you say about this project’s IRR?
A project requires, as its only cost, an initial investment of $17,000. It then generates positive future cash flows. The appropriate discount rate is 22%. This project has an NPV of -$935 (negative NPV). What can you say...
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