3. What is the present value of the following cash flows at an interest rate of 10% per year?a. $100 received five years from now.b. $100 received 60 years from now.C. $100 received each year beginning one year from now and ending 10 years from ow.d. $100 received each year for 10 years beginning now.e. $100 each year beginning one year from now and continuing forever. (Hint: You donot need to use the financial keys of your calculator for this, just some commonsense.)

Annual payment (A) = $100 r = 10%

3. What is the present value of the following cash flows at an interest rate of 10% per year? a. $100 received five years from now. b. $100 received 60 years from now. c. $100 received each year beginning one year from now and ending 10 years from now. d. $100 received each year for 10 years beginning now. e. $100 each year beginning one year from now and continuing forever. (Hint: You do not need to use the financial keys of your calculator for this, just some common sense

3. What is the present value of the following cash flows at an interest rate of 10% per year? a. $100 received five years from now. b. $100 received 60 years from now. c. $100 received each year beginning one year from now and ending 10 years from now. d. $100 received each year for 10 years beginning now. e. $100 each year beginning one year from now and continuing forever. (Hint: You do not need to use the financial keys of your calculator for this, just some common sense

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

Problem 1PS

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Similar questions

Can you please confirm my calculations: discount rate is 6%; end of year cash flows are as follows: Year 0: -20,000; year 1 through 5 are each 5,000; is the net present value of all cash flows 1061.82? and how do you calculate "at what discount rate is the net present value "0"?
A sum of $10,000 now (time 0) is equivalent to the following cash flow diagram. What is the value of $B if the annual interest rate is 3%? Ⓡ $1,200 The value of $B is $ (Round to the nearest dollar.) $10,000 1 2 $1,200 3 Click the icon to view the interest and annuity table for discrete compounding when i = 3% per year. $2,000 $B 5 End of Year 6 37
Cash Flow Series B Cash Flow Series C -$2,330 $2,870 $2,470 $2,070 $1,670 $1,270 Y Y Y - 2Y 2Y 2Y
Given the cash flow diagram, what is the uniform annual equivalent value at the end of each year for six years? a.) P214.14 b.) P239.37 c.) P227.88 d.) P301.87
Determine the value of Z on the left-hand side of the cash flow diagram below that establishes equivalence with the right-hand side. The interest rate is 4% per year.
If you invest $8,800, what is your rate of return if you will receive the following cash flows at the end of these years: Yr. 1 $2,000; Yr. 2 $2,100; Yr. 3 $2,200; Yr. 4 $2,300; Yr. 5 $3,700?
Suppose you would get OMR 500 at the end of 6 years and OMR 6700 at the end of 10 years. Calculate present value of both the cash inflows using 7.05% discount rate. .a 6500. b. 6700 C 671244 d. 2710.40 O
Project A has an internal rate of return of 10%. Project B costs £100 this year and will generate a cash flow of £105 next year. The two projects are not mutually exclusive. 1. The company should only undertake project A 2. If the appropriate discount rate is below 10%, the company should invest in both projects 3. If the appropriate discount rate is above 5% the company should invest in both projects 4. If the appropriate discount rate is above 5%, the company should not undertake project B
What is the present value of end-of-year cash flows of 1000 per year, with the first cash flow received three years from today and the last one 10 years from today? Use a discount rate of 12 percent.
What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 8%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67) Year 0 cash flow = 2000 Year 1 cash flow = 1700 Year 2 cash flow = 700 Year 3 cash flow = 900 Answer: کے
f4. Subject :- Accounting What is the future value in 5 years of a $7,000 investment placed into a bank account today that will pay you 12% interest compounded quarterly? What is the present value of an investment that will pay you $1500/year forever? Use i=9% What is the present value of an investment that will pay you $2500/year forever? Use i=6%
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

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