Present Value of Uneven Cash Flows
NPV(Rate,Cash Flow 1,Cash Flow 2,Cash Flow 3, ...)
Now, select B11 and type: =NPV(B1,B5:B9) and you will see that the answer is $1,000.18. Make a special note of the fact that we did not include the period 0 cash flow in the function. The NPV function has no way of knowing when a cash flow occurs, so it assumes that the first cash flow in the range occurs one period in the future. If we had included a period 0 cash flow, then the function would have given us the present value as of one period ago (i.e., period -1).
when using excel.... what is used to meadure the worth of a stream of cash flows,...
What is "A Stream of Cash Flows", and how is it used in Time Value of Money calculations?
Solve using excel please! For the cash flows shown below, determine the present worth in year 0 at an interest rate of 6% per year compounded monthly Cost ($1000) Year $300 0 $275 1 $250 2 $225 3 $200 4 $175 5
year Cash Stream A Cash Stream B 1 100 200 2 400 400 3 400 400 4 400 400 5 200 100 Find the present values of the following cash flow streams. The appropriate interest rate is 10%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem....
Problem 4-14 Uneven Cash Flow Stream a. Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the...
Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay...
Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay...
please show on a ba texas instrument calculator 8. Uneven cash flows A series, or stream, of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and nonconstant, but the concept of the time value of money applies to uneven cash flows as well Consider the following case: Swanky Beverage Co. expects the following cash flows from its manufacturing plant in Palau over the next 5 years: Year Annual Cash Flows $4,100,000 $5,000,000 $3,000,000...
Find the present worth in year 0 for the cash flows shown using an interest rate of 5% per year. *solve it in Excel, show formula P = ? i=5% 3 4 5 6 7 8 9 10 11 A=$10,000 $8000+$10,000 $12,000+$10,000
What is the present value of a stream of cash flows that pays $50 a year forever except for years 7 and 8? Discount rate is 10%. (The timeline of this stream of cash flows is given below) CF $50 $50 $50 $50 $50 $50 $50 $50 ……. Year 0 1 2 3 4 5 6 7 8 9 10 …….
What is the present value of a perpetual stream of cash flows that pays $6,000 at the end of year one and the annual cash flows grow at a rate of 3% per year indefinitely, if the appropriate discount rate is 12%? What if the appropriate discount rate is 10%?