A cash-flow series is increasing geometrically at the rate of 8% per year. The initial payment at EOY 1 is $5,000, with increasing annual payments ending at EOY 20. The interest rate is 15% compounded annually for the first seven years and 5% compounded annually for the remaining 13 years. Find the present amount that is equivalent to this cash flow.

Q: The present worth of a decreasing geometric series is 96157$. The interest rate is 8% per year and…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: Determine the present value in year zero of a gradient series that begins with a cash flow of $7,000…

A: Interest rate = 8% Cash flow in year 5 = $7000 Annual increase in cash flow = 8%

Q: money is worth 7.3%, compounded quarterly?

A: Present Value of future cash flow means the cash flows discounted at a given rate of return. FV*…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: Hadji wants to find the equivalent annual cash flow for 9 years with interest rate of 15% compounded…

A: Equivalent Annual Cash Flow = PV x r / [1 - {1 / (1 + r)^n}]

Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a…

A: Loan amount (L) = 50000 r = 10% Let CFn be the payment in year n. Let size of first payment = X CF1…

Q: It measures the performance of company managers in term of generating profit from operations.

A: Profit from operations refers to the profit that a business or a company earns by selling its goods…

Q: What lump sum of money must be deposited into a bank account at the present time so that $500…

A: Monthly withdrawals six years from now is $500 Time period of withdrawal is 5 years interest rate…

Q: A firm is scheduled to receive payment of $68,000 in 2 years.  What is the present value of this…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Wasup Corp. is thinking of borrowing $190,000 from its bank at 8% annual interest rate. The amount…

A: The objective of the question is to determine the number of years it will take for Wasup Corp. to…

Q: A stream of annual cash flows will begin 10 years from now and end 20 years from now. The initial…

A: Present value is a financial concept that represents the value of a future sum of money in terms of…

Q: annual payment from a cash flow is expected to grow 4% per year from year 1 to year 10, after which…

A: The present value of cash flow would be the equivalent value today that is equivalent to cash flow…

Q: What is the PV of the perpetuity paying $5 each month, beginning this month, if the monthly interest…

A: Here, Monthly Payment is $5 Monthly Interest Rate is 0.5% Monthly Growth Rate is 0.1%

Q: amount of funding now is equivalent to the amount in one year as it grows be compound interest rate.…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: A certain amount of money after a decade is said to b worth Php 12,000.00. If the interest rate…

A: first calculate the amount after first half present value = FV/(1+rate)n = 12,000/(1 + 1.1%/6)5*6 =…

Q: What uniform annual series of cash flows over a 12-year period is equivalent to an investment of…

A: Years (t)Cash…

Q: An investment will pay you $83,000 in five years. Assume the appropriate discount rate is 6.75…

A: The concept of time value of money will be used to solve this question.   We need to find the…

Q: What payment ten years from now is equivalent to P1,800 six years from now if the interest is 16%…

A: solution : a) interest rate =16% compounded annually 0 - 1 - 2 - 3 - 4…

Q: worth of a ten year geometric gradient series of cash flows was found to be $100,000. If the…

A: Future value of growing annuity can be found out from the growth rate and interest rate and period…

Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…

A: There are various types of Bank Accounts, one of the basic and most commonly used is Saving's…

Q: A certain amount of money after a decade is said to be worth Php 12,000.00. If the interest rate…

A: Future Value = 12,000 PHP 1 USD = 49 PHP Future Value in USD = 12,000 / 49 = 244.90 USD N = 10 years…

Q: What is the present value of a stream of $800 cash payments, each to be made at the end of the next…

A: Given:

Q: What is the present value of 24 monthly cashflows of $420 each starting today if the interest rate…

A: Using excel PV function, This is question of annuity due since cashflow starting today

Q: Consider a cash flow that lasts for ten years. the initial value A occurs at the third year,…

A: The time value of money becomes an important factor for capital budgeting decisions. It is an idea…

Q: Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EDY one is…

A: Here, Initial Value of cash flow of first case is $5188 Geometric gradient interest rate is 6% Cash…

Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…

A: Interest is the cost of borrowing the money.

Q: Suppose that you can pay 15,000,000 VND per month for the next 30 years. What is the largest loan…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is…

A: Present worth is the sum total of present values of all future cash flows. It is calculated as…

Q: Order the present values of these three cash flow with highest PV on top, middle PV in the middle,…

A: Present value factor is computed as follows:-present value factor = wherer= interest rate n= time…

Q: Consider a cash flow that lasts for ten years. the initial value A occurs at the third year,…

A: Present Value of series = 34,717 Interest Rate = 8% Annual Growth Rate = -6% Cash flows start at end…

Q: annual cash flow f

A: Annual cash flows refer to the income of the company before deducting any interest, taxes,…

Q: . A lump sum of $30,000 is invested at 6% compounded monthly for 15 years. For 15 years it then pays…

A: Present Value = $30,000 Interest Rate = 6% compounded Monthly Time Period = 15 Years

Q: A certain sum of money will be deposited in a savings account that pays interest at the rate of 6%…

A: The following information given in the question: Rate of interest : 6% compounded annually (I)…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.