BMGT340 Class Notes Ch 04

QUESTION 13 For a given cash flow diagram, if the interest rate i=10%, and A=$600, the F value is closest to: F=? A Years 2 3 i=10 % P=$ 4000

CH 3. #8 a An investment with an internal rate of return of 0.25 has the following cash flows: Time Cash flow 0 C0 1 +$8,000 2 +10,000 The value of C0 is___. b If the firm financed the investment in (a) with debt costing 0.25, the debt amortization table (using the funds generated by the investment to repay the loan) would be

question 13

An investment has the following expected cash flows: Year 2 3 Cash Flows $10,033 $20,003 30,000 The discount rate is 8 percent. The investment's future value at the end of year 3 is $ ___(keep two decimal places)

Question content area top Part 1 ​(Present value of complex cash​ flows)  You have an opportunity to make an investment that will pay ​$300 at the end of the first​ year, ​$100 at the end of the second​ year, ​$500 at the end of the third​ year, ​$300 at the end of the fourth​ year, and $400 at the end of the fifth year.   a.  Find the present value if the interest rate is 12 percent. ​ (Hint: You can simply bring each cash flow back to the present and then add them up. Another way to work this problem is to either use the =NPV function in Excel or to use your CF key on a financial calculator—but ​you'll want to check your​ calculator's manual before you use this key. Keep in mind that with the =NPV function in​ Excel, there is no initial outlay. That​ is, all this function does is bring all the future cash flows back to the present. With a financial​ calculator, you should keep in mind that CF0 is the initial outlay or cash flow at time​ 0, and, because there is no cash flow at time​…

part a and b

Question 6 Consider a series of cash flows as follows: £750 received one year from now, £1,200 received three years from now, and £1,250 received six years from now. If the discount rate is 6%, to the nearest £0.01 what is the (i) present value of the cash flows and (ii) the future value in ten years of the cash flows? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a (i) £2,596.29 and (ii) £4,386.38 b (i) £2,395.41 and (ii) £4,289.41 (i) £2,596.29 and (ii) £4,649.56 None of the above (1) £2,395.41 and (ii) £4,046.99

uestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W X

A real estate investment has the following expected cash flows:                         Year           Cash Flows                          1              $13,000                          2               12,000                          3               24,000                          4               25,000 The discount rate is 4 percent. What is the investment’s present value? Round your answer to 2 decimal places; for example 2345.25.

Dont use ai solution general Accounting question

estion 6 Assume that you are considering an investment costing $10,000, for which the future cash flows from owning the security depend on the state of the economy. Given the below table data, the Expected cash flow is;   State of Economy Probability Cashflows Recession 0.4 800 Moderate Growth 0.3 1200 Strong Growth 0.3 1600

QUESTION 2 You expect to receive $100 in year 1, $150 in year 2, and $200 in year 3 if you invest in Project XYZ. The project requires you to make an initial investment of $150 in year 0. You also expect to incur the following expenses: $80 in year 1, $80 in year 2, $100 in year 3. Suppose the current discount rate is 10% and remain the same. Suppoe all cash flows are incurred at the end of each year. What is the dynamic payback period? (round to 2nd decimal place)

A real estate investment has the following expected cash flows:                         Year           Cash Flows                          1              $14,000                          2               19,000                          3               19,000                          4               25,000 The discount rate is 3 percent. What is the investment’s present value? Round your answer to 2 decimal places

Problem 8.4 Compute the unknown values for each of the following cash-flow diagrams (time shown in years and interest compounded annually). (a) Figure 8.32 (b) Figure 8.33 (c) Figure 8.34 (d) Figure 8.35 Figure 8.32 Figure 8.33 $25 $25 $25 $25 $25 P $3.000 1 2 3 4 Figure 8.34 0 i = 6% F = ? 5 F Figure 8.35 + 2 3 4 i=8% P = ? A A A A A A $100 $100 $100 $50 $50 1 2 4 5 $5.000 i = 5% A = ? 6 a 1 2 3 4 5 i = 10% P = ?

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question 11 What is the present value of investment A, B, and C at an annual discount rate of 24 ​percent?