2 Instructions: 3 Build a model to calculate the year 3 value of receiving $150 for 15 years. Assume a discount rate of 8%. 5 Assume cash flows start at time 4. 5 Allow your model to accommodate up to 25 periods. 7 B Cash Flow Discount Rate Periods Starting Period Note that the number of periods, value period and starting period can change. Value Period Use your model to answer the following questions: + 0 11 What is the year 3 value of receiving $1 for 25 years? 1 12 What is the year 3 value of the annuity? 2 13 What is the sum of the unadjusted cash flows? 3 4 Reset Parameters $150 8% 15 4 3 Your answer Correct Answer $13.45 $1,283.92 $2,250,00
2 Instructions: 3 Build a model to calculate the year 3 value of receiving $150 for 15 years. Assume a discount rate of 8%. 5 Assume cash flows start at time 4. 5 Allow your model to accommodate up to 25 periods. 7 B Cash Flow Discount Rate Periods Starting Period Note that the number of periods, value period and starting period can change. Value Period Use your model to answer the following questions: + 0 11 What is the year 3 value of receiving $1 for 25 years? 1 12 What is the year 3 value of the annuity? 2 13 What is the sum of the unadjusted cash flows? 3 4 Reset Parameters $150 8% 15 4 3 Your answer Correct Answer $13.45 $1,283.92 $2,250,00
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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