a. What is the present value of the following set of cash flows, discounted at 10% per year?Year145CF$10$20$30$40$50b. What is the present value of the following set of cash flows, discounted at 10% per year?Year14CF$50$40$30$20$10c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different?a. What is the present value of the following set of cash flows, discounted at 10% per year?Year14CF$10$20$30$40$50The present value of the cash flow stream is $(Round to the nearest cent.)b. What is the present value of the following set of cash flows, discounted at 10% per year?Year1234CF$50$40$30$20$10The present value of the cash flow stream is|. (Round to the nearest cent.)c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different? (Select the best choice below.)

Present value (PV) refers to the current value of a future sum of money or cash flows computed at a…

a. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 2 3 4 CF $10 $20 $30 $40 $50 b. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 2 3 4 5 CF $50 $40 $30 $20 $10 c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different?

a. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 2 3 4 CF $10 $20 $30 $40 $50 b. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 2 3 4 5 CF $50 $40 $30 $20 $10 c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is the payback period for the following set of cash flows? Year Cash Flow -$ 0 3,000 2,800 1,300 1,800 1,200 1 2 134
Use the table of cash flows given below for problems 3 and 4. Year Cash Flow 1 $1,965 2 $1,235 3 $1,510 4 $1,075 3. Find the present value of the cash flows if the interest rate is 8%. 4. Find the future value of the cash flows in year 4 if the interest rate is 8%
At a rate of 6.5%, what is the future value of the following cash flow stream? $526.01 $553.69 $582.83 $613.51 $645.80
At a rate of 9.5%, what is the future value of the following cash flow stream? Years: CFS: 0 $0 1 $80 2 $240 3 $0 4 $320
Consider the following timeline detailing a stream of cash flows: Date 0 2 3 5 $100 $200 $300 $400 $500 ? Cash flow If the current market rate of interest is 10%, then the future value (FV) of this stream of cash flows is closest to: OA. $1500 OB. $1,887 OC. $3,019 OD. $2,264 D
11. At a rate of 6.5%, what is the future value of the following cash flow stream? Years: CFS: a. $526.01 b. $553.69 c. $582.83 d. $613.51 e. $645.80 0 $0 1 + $75 2 $225 3 + $0 $300
Consider the following timeline: Date 0 i + $500 2 OA. $666. B. $605. C. $500. OD. $650. 3 Cash flow If the current market rate of interest is 10%, then the future value of the cash flows on this timeline is closest to:
What is the future value at the end of year three of the following set of cash flows at an interest rate of 10% p.a. compounded annually? End of Year 1 $5,100 End of Year 2 $2,300 End of Year 3 $1,150 Select one: a. $8,550 b. $9,966 c. $9,851 d. $9,581
You are given the following cash flows. What is the present value (t = 0) if the discount rate is 12 percent? 0 1 2 3 4 5 6 (Periods) 0 2,000 2,000 2,000 0 -2,000 -2,000 (cash flows) Select one: a. $4,289 b. $2,804 c. $2,656 d. $4,804 e. $5,302
8. Calculating IRR What is the IRR of the following set of cash flows? LO 3 Year Cash Flow -$19,400 1 10,400 9,320 6,900
Which of the following cash flows has the highest future value? A. $1000 invested for two years in the future when the interest rate is 4% ⚫B. $1000 invested for two years in the future when the interest rate is 6% • C . $1000 invested for three years in the future when the interest rate is 4% ⚫ D. $1000 invested for three years in the future when the interest rate is 6%
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.)