Homework Answers
| PV Factor = 1/(1+r)^t | |||
| r = rate of interest and t = year(s) | |||
| Rate of Interest = Inflationary rate + rate of return | |||
| = | 9% + 3% | = 12% | |
| CV is already at PV, so we have taken factors of only remaining Year 3 & 4 cashflows | |||
| Year | Cash Flow(A) | PV Factor(B) | PV(A*B) |
| - | 15,500 | 1.000 | 15,500 |
| 3 | 33,500 | 0.712 | 23,845 |
| 4 | 14,100 | 0.636 | 8,961 |
| 7 | 26,700 | 1.000 | 26,700 |
| Present Worth of All Cash Flows | 75,005 | ||
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Problem 14.026: Calulate PW for a mix of CV-$ and future-$ cash flows Some of the...
Problem 04.062 Varying Interest Rates For the cash flows shown, determine the future worth in year...
Problem 04.062 Varying Interest Rates For the cash flows shown, determine the future worth in year 5. Year 0 1-4 Estimated i Per Year 14% Cash Flow($/year) 5000 6000 9000 14% 5 9% The future worth in 5 years is $
Restate the above net cash flow in real terms. Discount the restated cash flows at a...
Restate the above net cash flow in real terms. Discount the
restated cash flows at a real discount rate. Assume a 20% nominal
rate and 10% expected inflation. NPV should be unchanged at +2,593,
or $2,593,000.
($ thousands) Period 1 - 14,100 -1,634 3.097 - 14,100 -1,362 2.151 2,593 (sum of PVS) Net cash flow Present value at 20% Net present value 3 6,473 3.746 4 10.684 5,152 5 10,135 4,073 6 5.907 1,978 7 3.419 954 Restate the above...
Problem 04.062 Varying Interest Rates For the cash flows shown, determine the future worth in year...
Problem 04.062 Varying Interest Rates For the cash flows shown, determine the future worth in year 5. Year Cash Flow($/year) 0 5000 1-4 6000 51 9000 Estimated i Per Year 8% 8% 16% The future worth in 5 years is $ 93765.956 Ⓡ.
PLEASE WRITE OUT WHAT FORMULAS YOU USE 7. a. Given the cash flows in actual dollars...
PLEASE WRITE OUT WHAT FORMULAS YOU USE
7. a. Given the cash flows in actual dollars provided in the following table, convert the cash flows to equivalent cash flows in constant dollars if the base year is time 0. Assume that the market interest rate is 16% and the general inflation rate is at 4% each year. Cash Flow (in Actual Dollars) $20,500 $41,500 $36,500 $55,500 4 Calculate the present worth value of both (actual and constant $) cashflows within...
Consider the following project's after-tax cash flow in today's dollars: Year 0 1 2 3 Cash...
Consider the following project's after-tax cash flow in today's dollars: Year 0 1 2 3 Cash flow in Constant Dollars -$60,000 $25,000 $25,000 $35,000 a] Convert the cash flows from constant dollars (in the value of year 0) into equivalent current dollars with the base year being the present. Inflation rate is 2%. b) If the annual real interest rate is 5%, what is the present equivalent of the cash flow?
e The Future Worth in Year 10 x xle For The Cash Flow x G ion...
e The Future Worth in Year 10 x xle For The Cash Flow x G ion /connect.html er 2 homework Problem 02.030- Arithmetic change in cash flows sh flow gradient series equals $350 in year 1. $450 in year 2, and amounts increasing by $100 per year through year An arithmetic ca 11. At 1-11% per year, determine the present worth of the cash flow series in year . The present worth of the cash flow series in year O...
Please show all work! Calculate by (72) the future worth of the cash flows of Problem...
Please show all work!
Calculate by (72) the future worth of the cash flows of Problem 7.6, using (a) i=15% per year, (b) 1-8% per year, compounded annually. 7.18 Ans. (a) $1096.50; (b) $3727.38
1) (12 pts) The following is a cash flow diagram: Cash Flows: 20000 10000 Cash Flow...
1) (12 pts) The following is a cash flow diagram: Cash Flows: 20000 10000 Cash Flow $35,000 $5,000 $7,500 $1000 $10,000 $5,000 Year 0 1 2 4 >-10000 -20000 30000 40000 Years 4 Annual Interest rate = 10%, compounded annually a) Calculate the Present wortlh b) Calculate the equivalent annuity for these cash flows c) Calculate the future worth of these cash flows at 5 years
msider the following project's after-tax cash flow and the expected annual general inflation rate during the...
msider the following project's after-tax cash flow and the expected annual general inflation rate during the project period. General Inflation Rate O Expected Cash Flow End of Year EX (in Actual $) - $40,000 $27,000 $27,000 $27,000 3.3% 4.1 WN 5.1 (a) Determine the average annual general inflation rate over the project period. The average annual general inflation rate is 1%. (Round to two decimal places.) (b) Convert the cash flows in actual dollars into equivalent constant dollars with the...
the company has the following future cash flows year 1: 300$ year 2: 450$ year 3:...
the company has the following future cash flows
year 1: 300$
year 2: 450$
year 3: 500$
year 4: 600$
year 5: 625$
year 6: 750$
6. What is the Present Value of the company's Discounted Cash Flow assuming you can get a) a safe return of 5% in the market? Calculate each year's PV in the spaces provided above. Present Value of Discounted Cash Flows: What is the Net Present Value of this company if you pay $2,500 for...
Problem 04.062 Varying Interest Rates For the cash flows shown, determine the future worth in year 5. Year 0 1-4 Estimated i Per Year 14% Cash Flow($/year) 5000 6000 9000 14% 5 9% The future worth in 5 years is $
Restate the above net cash flow in real terms. Discount the
restated cash flows at a real discount rate. Assume a 20% nominal
rate and 10% expected inflation. NPV should be unchanged at +2,593,
or $2,593,000.
($ thousands) Period 1 - 14,100 -1,634 3.097 - 14,100 -1,362 2.151 2,593 (sum of PVS) Net cash flow Present value at 20% Net present value 3 6,473 3.746 4 10.684 5,152 5 10,135 4,073 6 5.907 1,978 7 3.419 954 Restate the above...
Problem 04.062 Varying Interest Rates For the cash flows shown, determine the future worth in year 5. Year Cash Flow($/year) 0 5000 1-4 6000 51 9000 Estimated i Per Year 8% 8% 16% The future worth in 5 years is $ 93765.956 Ⓡ.
PLEASE WRITE OUT WHAT FORMULAS YOU USE
7. a. Given the cash flows in actual dollars provided in the following table, convert the cash flows to equivalent cash flows in constant dollars if the base year is time 0. Assume that the market interest rate is 16% and the general inflation rate is at 4% each year. Cash Flow (in Actual Dollars) $20,500 $41,500 $36,500 $55,500 4 Calculate the present worth value of both (actual and constant $) cashflows within...
Consider the following project's after-tax cash flow in today's dollars: Year 0 1 2 3 Cash flow in Constant Dollars -$60,000 $25,000 $25,000 $35,000 a] Convert the cash flows from constant dollars (in the value of year 0) into equivalent current dollars with the base year being the present. Inflation rate is 2%. b) If the annual real interest rate is 5%, what is the present equivalent of the cash flow?
e The Future Worth in Year 10 x xle For The Cash Flow x G ion /connect.html er 2 homework Problem 02.030- Arithmetic change in cash flows sh flow gradient series equals $350 in year 1. $450 in year 2, and amounts increasing by $100 per year through year An arithmetic ca 11. At 1-11% per year, determine the present worth of the cash flow series in year . The present worth of the cash flow series in year O...
Please show all work!
Calculate by (72) the future worth of the cash flows of Problem 7.6, using (a) i=15% per year, (b) 1-8% per year, compounded annually. 7.18 Ans. (a) $1096.50; (b) $3727.38
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the company has the following future cash flows
year 1: 300$
year 2: 450$
year 3: 500$
year 4: 600$
year 5: 625$
year 6: 750$
6. What is the Present Value of the company's Discounted Cash Flow assuming you can get a) a safe return of 5% in the market? Calculate each year's PV in the spaces provided above. Present Value of Discounted Cash Flows: What is the Net Present Value of this company if you pay $2,500 for...
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