2.4 Quiz- Discounted Cash Flows and Time Value of Money (TVM)
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Finance
Date
Apr 3, 2024
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docx
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Uploaded by CaptainIce8722
Score for this quiz: 100 out of 100 Submitted Oct 29 at 8:55am This attempt took 7 minutes.
Question 1 50 / 50 pts Calculate the present value (PV) of 100 dollars 5 years from now using a discount rate of 10 percent. 90.91
62.09
Correct.
161.05
61.39
Question 2 50 / 50 pts Using a discount rate of 6 percent, calculate the PV of these cash flows.
Year
0
1
2
3
4
5
200
200
200
200
200
842.47
Correct
16.67
597.53
Quiz Score: 100 out of 100 Submission Details: Time:
7 minutes
Current Score:
100 out of 100
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Related Questions
Knowledge Check
You need cash of $18,700 to be received in 5 years, discounted at 7% compounded annually. Indicate the inputs to be
entered into the financial calculator keys. What is the present value of the amount to be received? (Round present value
answer to two decimal places (e.g., 52.75).)
Inputs
Calculator
N
Keys
Present value $
? N/A
PV PMT
FV
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What is the most you should pay to receive the following cash flows if your required rate of return is 10 percent? Year 1-3 $5,000 Year 4-6 Year 7-9 Years 10 $46,878.34 O $50,009.84 $40,639.31 $55,687.75 $52,439.73 $47,202.31 $8,000 $12,000 $15,000
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Please provide correct solution
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What is the present value of
$3,000
received
a.
10
years from today if the interest rate is
4%
per year?
b.
20
years from today if the interest rate is
8%
per year?
Question content area bottom
Part 1
a. The present value is
$enter your response here.
(Round to the nearest cent.)
b. The present value is
$enter your response here.
(Round to the nearest cent.)
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Can an expert help verify my answers please
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Please solve this question
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Question
What is the value, 6 years in the future, of $3,707 invested to earn an annual return of 4.4% ?
Enter your answer rounded to the nearest second decimal place. For example, enter $123.456 as $123.46.
Flag question: Question 7
Question
Imagine that you would like to withdraw $2,511 at the beginning of each year starting today and lasting for the next 8
years. Assuming the funds in the account are invested to generated an annual return of 6.4%, how much would you
need to have in the account to fund this stream of payments?
Enter your answer rounded to the nearest second decimal place. For example, enter $1,234.567 as 1234.57.
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QUESTION
Time
Cash Flow
Period 0
-50,000.00
Period 1
15,000.00
Period 2
20,000.00
Period 3
25,000.00
Period 4
18,000.00
Find the IRR using discount rates of 10% and 20%
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I need help with this problem question
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Give me correct answer with explanation.
Don't upload any image please.heer
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Question 4 of 5
Using Technological Tools: Future Value of a Single Sum - Knowledge Check
Knowledge Check
0.34/1
You deposit $600 today into a fund that you intend to leave invested for 6 years. The fund earns 4% interest compounded
annually. Indicate the inputs to be entered into the financial calculator keys. What is the value of the fund to be accumulated at the
end of year 6? (Round future value answer to two decimal places (e.g., 52.75) and interest rate to one decimal place (e.g., 527.5).)
Inputs
Calculator Keys
N
Future value
$
Save for Later
N/A
?
PV
PMT FV
Attempts: 0 of 3 used
Submit Answer
SUPPORT
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What is the present value of a perpetual stream of cash flows that pays $
7,500 at the end of year one and the annual cash flows grow at a rate of
2% per year indefinitely, if the appropriate discount rate is
9%? What if the appropriate discount rate is
7%?
Question content area bottom
Part 1
a. If the appropriate discount rate is
9%, the present value of the growing perpetuity is $
enter your response here
. (Round to the nearest cent.)
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3
Using Exhibit 1-B, complete the following table. (Round FVA factors to 3 decimal places and final answers to the nearest whole
dollar.)
S
S
$
Annual
Deposit
$
2,400
2,400
2,400
2,400
Rate of
Return
3%
9%
5%
11%
Answer is complete but not entirely correct.
Number of
Years
10
10
30
30
Investment Value
at the End of
Time Period
S
$
$
$
Total
Amount of
Investment
28,796 $24,000
54,149 X S
268,355 X $
1,401,065 $
Total Amount of
Earnings
S
S
24,000
72,000 $
72,000 $
4,796 X
30,149 X
196,355 x
1,329,065 x
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The Hudson Corporation makes an Investment of $28,050 that provides the following cash flow.
Year
1
2
3
Cash Flow
$ 15,808
15-808
3,000
Use Appendix F and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator
methods.
a. What is the net present value at a discount rate of 4 percent?
Note: Do not round Intermediate calculations and round your answer to 2 decimal places.
Nel present value
b. What is the internal rate of return?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
internal rate of return
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a. Find the FV of $1,000 invested to earn 10% after 5 years. Round your answer to the nearest cent.
$
b. What is the investment's FV at rates of 0%, 4%, and 25% after 0 , 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent.
Year
0
1
2
3
4
5
$
$
$
$
$
$
0%
$
$
$
$
$
$
Interest Rate
4%
$
$
$
$
$
$
25%
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Write by hand please answer ASAP
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Time Value of Money: BasicsUsing the equations and tables in Appendix 12A of this chapter, determine the answers to each of the following independent situations:
Round all answers to the nearest whole number.
a. The future value in two years of $11,500 invested today in a certificate of deposit with interest compounded annually at 10 percent.
$Answer
b. The present value of $13,000 to be received in five years, discounted at 8 percent.
$Answer
c. The present value of an annuity of $26,500 per year for four years discounted at 12 percent.
$Answer
d. An initial investment of $48,220 is to be returned in six equal annual payments. Determine the amount of each payment if the interest rate is 16 percent.
$Answer
e. A proposed investment will provide cash flows of $13,000, $16,000 and $14,000 at the end of Years 1, 2, and 3, respectively. Using a discount rate of 16 percent, determine the present value of these cash flows.
Present Value
Year 1
Answer
Year 2
Answer
Year…
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Related Questions
- Knowledge Check You need cash of $18,700 to be received in 5 years, discounted at 7% compounded annually. Indicate the inputs to be entered into the financial calculator keys. What is the present value of the amount to be received? (Round present value answer to two decimal places (e.g., 52.75).) Inputs Calculator N Keys Present value $ ? N/A PV PMT FVarrow_forwardWhat is the most you should pay to receive the following cash flows if your required rate of return is 10 percent? Year 1-3 $5,000 Year 4-6 Year 7-9 Years 10 $46,878.34 O $50,009.84 $40,639.31 $55,687.75 $52,439.73 $47,202.31 $8,000 $12,000 $15,000arrow_forwardPlease provide correct solutionarrow_forward
- What is the present value of $3,000 received a. 10 years from today if the interest rate is 4% per year? b. 20 years from today if the interest rate is 8% per year? Question content area bottom Part 1 a. The present value is $enter your response here. (Round to the nearest cent.) b. The present value is $enter your response here. (Round to the nearest cent.)arrow_forwardCan an expert help verify my answers pleasearrow_forwardPlease solve this questionarrow_forward
- Question What is the value, 6 years in the future, of $3,707 invested to earn an annual return of 4.4% ? Enter your answer rounded to the nearest second decimal place. For example, enter $123.456 as $123.46. Flag question: Question 7 Question Imagine that you would like to withdraw $2,511 at the beginning of each year starting today and lasting for the next 8 years. Assuming the funds in the account are invested to generated an annual return of 6.4%, how much would you need to have in the account to fund this stream of payments? Enter your answer rounded to the nearest second decimal place. For example, enter $1,234.567 as 1234.57.arrow_forwardQUESTION Time Cash Flow Period 0 -50,000.00 Period 1 15,000.00 Period 2 20,000.00 Period 3 25,000.00 Period 4 18,000.00 Find the IRR using discount rates of 10% and 20%arrow_forwardI need help with this problem questionarrow_forward
- Give me correct answer with explanation. Don't upload any image please.heerarrow_forwardQuestion 4 of 5 Using Technological Tools: Future Value of a Single Sum - Knowledge Check Knowledge Check 0.34/1 You deposit $600 today into a fund that you intend to leave invested for 6 years. The fund earns 4% interest compounded annually. Indicate the inputs to be entered into the financial calculator keys. What is the value of the fund to be accumulated at the end of year 6? (Round future value answer to two decimal places (e.g., 52.75) and interest rate to one decimal place (e.g., 527.5).) Inputs Calculator Keys N Future value $ Save for Later N/A ? PV PMT FV Attempts: 0 of 3 used Submit Answer SUPPORTarrow_forwardWhat is the present value of a perpetual stream of cash flows that pays $ 7,500 at the end of year one and the annual cash flows grow at a rate of 2% per year indefinitely, if the appropriate discount rate is 9%? What if the appropriate discount rate is 7%? Question content area bottom Part 1 a. If the appropriate discount rate is 9%, the present value of the growing perpetuity is $ enter your response here . (Round to the nearest cent.)arrow_forward
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