Cash-flow A consists of $2,000 in year 4. Cash-flow B is the "discounted value" (arriving in year 2) of cash-flow A. If the interest rate is 3% compounded annually, how big is cash-flow B?
A. $1,885.19
B. $1,861.22
C. $1,922.51
D. $1,761.22
Cash-flow A consists of $2,000 in year 4. Cash-flow B is the "discounted value" (arriving in...
Cash-flow A consists of $2,000 in year 4. Cash-flow B is the "discounted value" (arriving in year 2) of cash-flow A. If the interest rate is 3% compounded annually, how big is cash-flow B?
Cash-flow A consists of a lump sum of $5,000 arriving in year 4. If the interest rate is 6%, compounded annually, what is the "present value" of cash-flow A?
Cash-flow A consists of a lump sum of $1,000 today. What is the future value (FV) of cash-flow A in year 6 if the interest rate is 5% compounded annually?
(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...
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.
What lump sum cash-flow in year 7 is equivalent in value to $500 in year 2 if the interest rate is 4% compounded annually? A. $601.22 B. $621.98 C. $657.97 D. $608.33
QUESTION 4 John expects to receive $2,000 in 2024. Calculate the present value of this cash flow assuming an interest rate of 6%, compounded annually. QUESTION 5 Mike invested $3000 in IBM paying 6% interest rate a year. Using the rule 72, how long will it take to double Mike's investment? QUESTION 6 Suppose you invested $4000. The expected payoffs are provided in the following table: Case Scenario Payoff 1 $4500 2 $3800 3 $4700 What is the value at...
The present value of the following cash flow stream is $6.820 when discounted at 7 percent annually. Year 1 2 3 4 Cash Flow $1,000 ? 1,300 1,900 What is the value of the missing cash flow? Multiple Choice O $3,374.73 $3,786.46
What lump sum cash-flow in year 7 is equivalent in value to $500 in year 2 if the interest rate is 4% compounded annually?
Problem 6-27 Discounted Cash Flow Analysis (L01) The appropriate discount rate for the following cash flows is 9 percent compounded quarterly. Year 1 2 3 Cash Flow $ 750 830 0 1.420 - What is the present value of the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value