1. Find the present worth of the following cash flow. Assume 2% discount rate. + $5M - $10M + $2M 4 yrs 12 yrs

Q: Am. 114.

A:

Q: Year 1 2 3 4 Cash Flow $800 1,010 1,280 1,180

A: Present value is the equivalent value based on the time value of money of the future cash flow that…

Q: Consider the following cash flows: Year Cash Flow -$28,600 15,100 13,800 10,200 1 2 3 a. What is the…

A: profitability index is given by present value of cash flow to initial investment. Profitability…

Q: What is the present value of the following cash flows, if the discount rate is 10% annually?…

A: The present value is the sum of discounted cash flows.

Q: for the below Cash flow, find the total Present value using 10% interest rate. QUESTION 2 years 0…

A: Solution:- Present value means value in today’s terms after discounting the future value. So, for a…

Q: Consider the following cash flows: Year Cash Flow -$29,900 13,800 15,100 11,500 1 3 a. What is the…

A: Profitability index measures the return generated by each dollar of investment. Itcan be calculated…

Q: rejecting it? LO 3 8. Calculating IRR What is the IRR of the following set of cash flows? Year Cash…

A: Net Present Value: Net present value (NPV) is the excess of present value of cash inflows over the…

Q: 0 1 2 2,000 2,000

A: Present value of cash flow is current period value of a future sum. We can calculate the present…

Q: the present value P is closest to:

A: Present Value: It is the present worth today of a stream of annual cashflows. These cashflows are…

Q: With the given information, find the Net Present Value (NPV).

A: The net worth of the project after the deduction of the current worth of the cash outflows from the…

Q: Determine values for present worth (PW or NPV), future worth (FW), annual worth (AW) AND discounted…

A: Net Present Value Every project will have cash inflows and cash outflows, and the difference between…

Q: The net present value (NPV) the cash flows from T=0 to T=3 is $2278 when using a 10% discount rate.…

A: Net present value = Total Present value of all years cash flows - initial investment, applying the…

Q: a. Find the present values of the following cash flow streams at a 7% discount rate. Do not round…

A: Discount Rate = r = 7%Stream ACash Flow for Year 0 = cf0 = $0Cash Flow for Year 1 = cf1 = $100Cash…

Q: Consider the following cash flows: Cash Flow -$ 29,200 14,500 Year 0 1 2 3 14,400 10,800 a. What is…

A: The profitability index of a project refers to the measurement of the attractiveness of the project…

Q: Suppose you are given the following cash flow stream. If the interest rate is 20 percent, what is…

A: The time value of money is an important concept in finance that recognizes the idea that a sum of…

Q: Given the following cash flows, what is the future value if the interest rate is 5%? Year 1 2 3…

A: Future value is the value of a sum of money at a future point in time for a given interest rate. It…

Q: 6. Consider the following cash flow series, Aj=1,500 Az=3,000 A3=4,500 A4=6,000 As=7,500 A6-9,000…

A: A1 = 1500, A2 = 3000, A3 = 4500, A4 = 6000 A5 = 7500, A6 = 9000, A7 = 10500 A8 = 12000, A9 = 13500,…

Q: For the following stream of free cash flows, calculate the npv if the discount rate is 12.5%

A: Net Present Value: It is the difference between the cash outflow and the discounted cash inflows.…

Q: What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 - $1,145 1 $459 2…

A: Net Present value (NPV) = Present value of positive cash flows - Present value of negative cash…

Q: Determine the value of X that makes the following two cash flow diagrams equivalent when the interes…

A: Given, The cashflow diagrams that are equivalent at r=10% per period.

Q: At a rate of 10.0%, what is the future value of the following cash flow stream? Years: CFS: a. $820…

A: The future value of a cash flow is calculated by

Q: For what value of n, based on a 5% interest rate, do these cash flows have a present value of 0?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: The present value of the following cash flow stream is $6.790 when discounted at B percent annually…

A: Step 1 Cash Flow A business's inflow and outflow of cash or its equivalents is referred to as cash…

Q: Consider the following timeline detailing a stream of cash flows: Date Cash Flow $1,000 $2,000 O…

A: Future value of cash flows is the accumulated value of present cash flows compounded at the given…