a. What is the present value of the following set of cash flows, discounted at 9.9% per year?Year12345CF$12$22$32$42$52b. What is the present value of the following set of cash flows, discounted at 9.9% per year?Year1234CF$52$42$32$22$12c. Each set contains the same cash flows ($12, $22, S32, $42, $52), so why is the present value different?a. What is the present value of the following set of cash flows, discounted at 9.9% per year?Year124CF$12$22$32$42$52The present value of the cash flow stream is S(Round to the nearest cent.)

Discount rate = 9.9% Calculation of present value Year Cash flow PVF(9.9%,Year) Present value A…

Answered: a. What is the present value of the…

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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Consider the following timeline detailing a stream of cash flows: Date Cash Flow $1,000 $2,000 O $6,326.40 $ 7,136.73 O $5,022.10 O $5,423.87 0 O $ 6,832.51 1 If the current market rate of interest is 8% per year, then the future value (FV) of this stream of cash flows in year 3 is closest to O $ 6,000.00 2 $3,000 3 FV=?
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
What is the present value of the following set of cash flows at an interest rate of 8% p.a. compounded annually? End of Year 1 $1,150 End of Year 2 $2,300 End of Year 3 $5,100 Select one: a. $7,401.20 b. $7,085.23 c. $8,550.00 d. $7,805.23
An arithmetic cash flow gradient series equals $600 in year 1, $800 in year 2, and amounts increasing by $200 per year through year 5. At i = 6% per year, determine the factor from the compound interest factor table that is used to calculate the equivalent annual worth of the revenue through year 5. Multiple choice question. A. 4.212 B. 5.637 C. 1.884 D. 7.934
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
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. $9,581
es Consider the following cash flows: Year Cash Flow 0 -$ 29,900 1 13,800 2 3 15,100 11,500 a. What is the profitability index for the cash flows if the relevant discount rate is 8 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. b. What is the profitability index if the discount rate is 13 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. c. What is the profitability index if the discount rate is 20 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. a. Profitability index b. Profitability index c. Profitability index T
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
Consider the cash flows in the table bolow: \table[[ Year, 0, 1, 2, 3, 4, 5], [Cash Flow, - $ 100, $50, $60, $70, $80, $140 11. Consider the cash flows in the table below: Year 0 Cash Flow -$100 1 $50 2 $60 Which one of the following is correct for this cash flow (circle)? A. 100 50+ 10(A/G, 1, 5)+50(P/F, 1,5) B. (50(P/A, i, 5)+10(P/G, i, 5) +50(P/F, i, 5))/ (100)=1 C. 100(P/A, 1, 5)=50+10(A/G, I, 5) D. None of the equations are correct. 3 $70 4 $80 5 $140
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%
) Assuming a 9% cost of capital, find the modified internal rate of return for the following cash flows: a. 19.78% b. 6.95% c. 13.64% d. 7.86% Year Cash Flow 0 1 2 3 -$175 $167 $240 -$120

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