1. Use the cash flow diagram to determine the uniform annual amount in years 1 through 8 that is equivalent to all of the cash flows shown. Use i = 10% per year. [5] 2 3 4 5 6 7 8 Year $25 $25 $25 $25 $25 $25 $25 $50 $50 S50

Q: Find the present worth in year 0 for the cash flows shown. Let i= 16% per year. 0 1 2 50 3 4 5 6 7 8…

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

Q: What is the present value of the following cash flow at a 12% discount rate?…

A: Present value is calculated using the discounting factor of Rate @ 12%

Q: 3. What is the present value of the following set of cash flows at an 8% discount rate compounded q…

A: Present value is computed by following formula:-PV = wherePV = Present value of Cash flowsA = Cash…

Q: 10. The appropriate discount rate for the following cash is 10% per year: Year flows 2 तत 3 Cash…

A: The future worth of the current amount can be computed after adding up the product of the FVIF for…

Q: For the cash flows below, determine the amount in year 1, if the annual worth in years 1 through 9…

A: Annual Worth :— The annual worth is the net of all the benefits and costs incurred over a one-year…

Q: For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth…

A: The present value refers to the discounted value of the future cash flows. Discounting is done till…

Q: Find 1. Payback 2. Discounted payback. Compare the two methods.   WACC: 9.00%             Year…

A: year  cash flows 0 -1200 1 350 2 480 3 -10 4 830 5 -20 6 1200 WACC 9%

Q: 1% 2% 3% 4% 5% 6% 7% 8% 9% 109 5 61 A 1. Suppose that there is a single $100 cash flow at the…

A: Uniform annual series is that is equivalent to the annual cash flow deposited at the end of each…

Q: What is the payback period for the following stream of cash flows if the discount rate is 9%?  Year…

A: Cash Flow for Year 0 = cf0 = -$54,000Cash Flow for Year 1 = cf1 = $21,000Cash Flow for Year 2 = cf2…

Q: What is the future value at the end of year three of the following set of cash flows at an interest…

A: Given: Year Cash flows 1 $150 2 $300 3 $500

Q: Find the PW, AW and FW of the following cashflow if the interest rate compound semiannually. P-7…

A: The question is based on the concept for calculating Present worth(PW), Annual Worth (AW), and…

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: What is the net present value of the following set of cash flows at a discount rate of 5 percent? at…

A: Net Present Value(NPV) is excess of PV of inflows over PV of outflows that is computed by…

Q: The amount in year 1 is $

A: Annual Worth Net of all the benefits and costs incurred over a one-year period is called annual…

Q: From the following cash flow diagram of nine years and 6% interest rate, find the present value, P.

A: Present value gives the present value of a future cashflow.…

Q: $500. The interest rate is 8% per year. Cash flow, $ Year O 1 2 3 125 125 + G 125+ 2G nown below,…

A: First cash flow=$125Equivalent cash flow=$500Interest rate=r=8%Period=n=7 years

Q: 1% 2% 3% 4% 5% 6% 7% 8% 9% 2 4 5 7 uppose that there is a single $100 cash flo w at the ond. of veer…

A: Future value includes the interest and amount initial deposit and future value depends on interest…

Q: The cash flow given in Problem 20.18 is to be replaced by an equivalent cash flow with equal amounts…

A:

Q: 8. Find the net present value of the cash flows shown below. +200 %5 %8 %10 %12 Semiannually…

A: We will calculate the NPV for each period taking 1 year as it has been mentioned for the different…

Q: For each of the following annuities, calculate the annual cash flow: Note: Do not round intermediate…

A: Cash Flow = (Present Value * Interest Rate) / (1 - (1 / (1 + Interest Rate)^time))

Q: Calculate NPV using 10% discount rate. Year Cash Flow 0 1 -30,000 10,000 2 15,000 3 15,000

A: YearCash flow0-30,000110,000215,000315,000

Q: What is the present value of the following set of cash flows at an interest rate of 8% p.a.…

A: The concept of present value states that a sum of money today is worth more than the same sum in the…

Q: 3. Refer to the following table of cash flows: End of Year (EOY) Cash Flow 8 12 16 P5,000 P5,000…

A: Annual worth assessments are substantially the same as present worth comparisons, with the exception…

Q: What is the future value at the end of year three of the following set of cash flows at an interest…

A: Future Value = Present value * ( 1 + Interest rate)time period

Q: a given cash flow diagram, if the interest rate i=10% , and A=$600, th F=? A Years 2 i=10 %

A: The given series represents an annuity. An annuity is a series of uniform cash flows over a period…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.