a. What is the present value of the following set of cash flows, discounted at 10.6% per year? b. What is the present value of the following set of cash flows, discounted at 10.6% per year? c. Each set contains the same cash flows ($8, $16, $24, $32, $40), so why is the present value different? a. What is the present value of the following set of cash flows, discounted at 10.6% per year? The present value of the cash flow stream is S. (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year CF 1 $8 2 $16 Print 3 $24 Done 4 $32 5 $40 X Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 3 CF $24 1 $40 2 $32 Print Done 4 $16 5 $8 - X
a. What is the present value of the following set of cash flows, discounted at 10.6% per year? b. What is the present value of the following set of cash flows, discounted at 10.6% per year? c. Each set contains the same cash flows ($8, $16, $24, $32, $40), so why is the present value different? a. What is the present value of the following set of cash flows, discounted at 10.6% per year? The present value of the cash flow stream is S. (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year CF 1 $8 2 $16 Print 3 $24 Done 4 $32 5 $40 X Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 3 CF $24 1 $40 2 $32 Print Done 4 $16 5 $8 - X
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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Transcribed Image Text:a. What is the present value of the following set of cash flows,, discounted at 10.6% per year?
b. What is the present value of the following set of cash flows,, discounted at 10.6% per year?
c. Each set contains the same cash flows ($8, $16, $24, $32, $40), so why is the present value different?
a. What is the present value of the following set of cash flows, discounted at 10.6% per year?
The present value of the cash flow stream is $. (Round to the nearest cent.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
2
3
Year
CF
$16
$24
1
$8
Print
Done
4
$32
5
$40
- X
(…)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Year
3
CF
$24
1
$40
2
$32
Print
Done
4
$16
5
$8
- X
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