a firm will produce Rs 17,000 spread out over the next five years is Rs 3,000; Rs 5,000; Rs 4,000; Rs 3,000; and Rs 2,000 in year 1, 2, 3, 4 and 5 respectively. Market rate is 12%. Find the present value of cash flows and Future Value at the end of year 5 in following cases. Annually b. bi-annually c. weakly

Q: A series of quarterly cash flows occurs as shown in the chart below. At 9.125% interest, compounded…

A: NPV is the Net Present value It can be determined by calculating the present value of the cash flows…

Q: determine the equivalent a. present worth at the beginning of the first year and b. uniform annual…

A: Net Present Value: It is the present worth of the annual cash flows and the initial cost of the…

Q: The cash flows shown in the table below occur every six months (bi-annually) and have a total…

A: Present value of annuity is the current value of the future payments that are calculated using the…

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

A: Annual Cash flow (CF) = $3500 Interest rate (r) = 0.10 Period (n) = 9 Years Amount in year 1 (P1) =…

Q: 4. The amount of P50,000 was deposited in the bank earning an interest of 7.5% compounded…

A: The concept of TVM states that the money received now is worth more than the same amount of money…

Q: A series of cash flows are established on an account as listed below. Payment of P5,854 at the end…

A: Present Value: Given a certain rate of return, the present value (PV) of a future amount of money or…

Q: What is the future value on December 31, Year 10, of 10 cash flows of $20,000 with the first cash…

A: Formula: Where P is the annual payment ($20,000), r is the annual interest rate (10% or 0.10), and n…

Q: You have cash flows of $100 at the end of year 1, $200 at the end of years 2 and 3, and $300 at the…

A: The problem requires the determination of the present value of the cash flows using discounting and…

Q: ing $5.000 monthly deposits into a fund that pays inte rest at a rate of 6% compounded momhly. What…

A: Compound Interest - Compound interest, also known as interest on principal and interest, is the…

Q: What is the present value of the combined cash flows?

A: Present Value: It represents the present value of the future cash flow stream.  It is computed by…

Q: Shelton Co. purchased a parcel of land six years ago for $869, 500. At that time, the firm invested…

A: In decision making activity we consider only the present value of the asset. Historical costs or…

Q: With an interest rate of 6.5% p.a, compounded monthly, (i) Calculate the equivalent value of all…

A: Here we will have to use the concept of time value of money and determine the values at given points…

Q: What is the future value on December 31, Year 11, of 20 cash flows of $15,000 with the first cash…

A: The future value (FV) is a financial concept that represents the value of a sum of money at a…

Q: Assuming an interest rate of 6.3 percent, what is the value of the following cash flows four years…

A: $3,225 is received one year from today and we have to determine its value four years from today. So,…

Q: What is the present value of the cash flow given below, interest at 8% compounded semi-annually. 0.5…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: If interest is 7% compounded annually, calculate the present value of four year cash flows of…

A: Net present value is the sum of present value of future cashflows

Q: An investment of $14,000 is growing at 5% compounded semi-annually. a. Calculate the maturity value…

A: Maturity value: A financial obligation's maturity value is the sum owed and due to be paid to the…

Q: What is the future value on June 30, Year 11, of 20 cash flows of $15,000 with the first cash…

A: Compound = Semiannually = 2time = 20 Payment = $15,000Semiannually Interest Rate = 10 / 2 = 5%

Q: i= 12% 2 3 4 n-1 $500 -$700 $900 $1100 A

A: Interest rate = 12% Year Cash Flow 1 500 2 700 3 900 4 1100 5 1300 6 1500 7 1700…

Q: The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent…

A: The Present Value of Cash flows are calculated by multiplying the Cash flows by discount factor of…

Q: If Norm had the following cash inflows and cash outflows over a 15-year period, and the account was…

A: FV=PV*(1+r)n

Q: The two cash flow transactions shown in the accompanying cash flow diagram are said to be equivalent…

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

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: Investment deposit made over a four-year period are R200, R100, R150 and R200. The real interest…

A: As, the interest rate (real) is given, which means the rate of inflation is already included in the…

Q: 4. The amount of P50,000 was deposited in the bank earning an interest of 7.5% compounded…

A: Compound Interest Depositing the cash into the bank for a specific time period can benefit the…

Q: The cash flow associated with a stripper oil well is expected to be $4,000 in month one, $3,925 in…

A: The month 1 cash flow is $4,000 and the cash flow decreased by 75 monthly. The annual effective rate…

Q: The cash flow associated with a stripper oil well is expected to be $4,000 in month one, $3,925 in…

A: Cash flow is defined as the movement of the funds that inflows as well as outflows of the…

Q: Consider the following schedule: number of years 10; annual interest rate 6% Annual withdrawal of…

A: Given: Year With drawl Deposit 1 -$500 $10,000 2 -$500   3 -$500   4 -$500   5 -$500…

Q: What will the deposited amount be at the end of 5 years if P15,000 is deposited in an account…

A: Information Provided: Term = 5 years Rate = 4% compounded quarterly Principal = 15,000

Q: In how many years is required for 2,000.00 to increase by 3,000.00 if interest is 12% compounded…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: Determine the present value of the following cash flows; P4,000 at the end of 4th month and every…

A: Given information= P4000 at the end of 4th month and every month thereafter till the 12th Month…

Q: Calculate the Present Value of the cash flow shown below.Interest rates 11.00% per year, compounded…

A: Part 2: ExplanationStep 1:Identify the cash flows and the time periods. From the image, the cash…

Q: n                          Net cash Flow                             0…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

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: With cash flow diagram. What lump sum of money must be deposited into a bank account at present time…

A: Semi annual withdrawal = $ 1500 Number of withdrawals = 10*2 = 20 Annual interest rate = 12%…

Q: The cash flow associated with a stripper oil well is expected to be $4,000 in month one, $3,925 in…

A: Interest Rate = 12%/12 = 1% per month Cash Flow in month one = 4000 Cash Flow in month two = 3925…

Q: A cash flow of $1.5 is paid 360 times per year for the next 3 years. The NAR3 is 1.5%. What is the…

A: NAR stands for "Net Annual Rate." It is a financial metric used to represent the effective annual…

Q: The appropriate discount rate for the following cash flows is 15 percent compounded quarterly. Year…

A: Compound = Quarterly = 4Cash Flow for Year 1 = cf1 = $700Cash Flow for Year 2 = cf2 = $600Cash Flow…

Q: Find the effective interest rate (effective annual yield) of an investment that pays 10% per year…

A: Interest Rate = r = 10%Compound = n = Quarterly = 4

Q: If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5% per…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: What is the future value of four cash flows of $500 to be received at the end of each of 4 years…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: 22. Determine the future value at the end of June for the cash flows in Table 15-6 using a periodic…

A: Monthly interest rate = 1% Duration of cash flows from December to May = 7 Months

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.