A cash flow sequence starts in year 1 at $5,000 and increases by $200 each year through year 10. Determine the present worth of the sequence. Use an interest rate of 10%.
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For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box.
A cash flow sequence starts in year 1 at $5,000 and increases by $200 each year through year 10. Determine the present worth of the sequence. Use an interest rate of 10%.
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- What is the present value of the following stream of cash flows if the discount rate is 9%? Year 1-5: $14,000 inflow Years 6-20: $23,000 inflow (Use the present value tables in your course packet for any present value calculations. Round your final answer to the nearest dollar.)Suppose you need $5,000 in one year, $4,300 more in two years, and $5,000 more in three years. Match each present value amount to the corresponding cash flow, assuming a discount rate of 17%. (Round all answers to two decimal places.) Instructions Drag and drop application. Present value of the Year 1 cash flow Present value of the Year 1 cash flow drop zone empty. Present value of the Year 2 cash flow Present value of the Year 2 cash flow drop zone empty. Present value of the Year 3 cash flow Present value of the Year 3 cash flow drop zone empty. $3,141.21 $3,121.85 $4,273.50Which of the following processes can be used to calculate the future value for multiple cash flows? More than one answer may be correct. Multiple select question. Adding all the single cash flows and finding the future value of the single lump sum amount Discounting all of the cash flows back to Year 0 Calculating the future value of each cash flow first and then adding them up Compounding the accumulated balance forward one year at a time
- 1. You expect to receive $1,000 in one year, $2,000 in three years, and $1,500 in five years. Assume that the appropriate discount rate is 13%. a. Display these cash flows in a spreadsheet using the layout of a time line. Enter all period numbers (up to year 5) in one row, and the expected cash flows in the next row. b. What is the present value of these expected cash flows? Your answer should consist of one spreadsheet file with all your work in one worksheet. it should answer in excel filePlease solve step by step for clarity, thank you!We want to determine the discount rate that sets the present value of the future net cash flow. Suppose that we start with a 15% discount rate and calculate the present value of the cash flow stream. Initial Cash Outflow is $1,00,000. Find IRR. Year Net Cash flows 1 $34,432 2 $39,530 3 $39,359 4 $32,219
- Assume that you are nearing graduation and have applied for a job at a prestigious com- pany. The company's evaluation process requires you to take an examination that covers several financial analysis techniques. The first section of the test addresses discounted cash flow analysis. See how you would do by answering the following questions. a. Draw time lines for (1) a $100 lump sum cash flow at the end of Year 2, (2) an or- dinary annuity of $100 per year for 3 years, and (3) an uneven cash flow stream of -$50, $100, $75, and $50 at the end of Years 0 through 3. b. (1) What's the future value of an initial $100 after 3 years if it is invested in an ac- count paying 10% annual interest? (2) What's the present value of $100 to be received in 3 years if the appropriate inter- est rate is 10%? c. We sometimes need to find out how long it will take a sum of money (or something else, such as earnings, population, or prices) to grow to some specified amount. For example, if a company's…A cash flow sequence has a receipt of $20,000 today, followed by a disbursement of $17,000 at the end of this year and again next year, and then a receipt of $13,100 three years from now. The MARR is 6 percent. a. What is the ERR for this set of cash flows? b. What is the approximate ERR for this set of cash flows? c. Would a project with these cash flows be a good investment? a. The ERR is%. (Round to two decimal places as needed.)Please Provide Correct Answer