Calculate the value of x for the cash flows below such that the equivalent total value in year 8 is $20,000, using an interest rate of 15% per year. Year          Cash flow, $                      Year             Cash flow, $ 0             2000                                      6                    x 1             2000                                      7                    x 2                x                                         8                    x 3                x                                         9                1000 4                x                                        10               1000 5                x                                        11               1000

Q: What is the net present value (NPV) of your proposed expansion into the Canada? Assume that the cash…

A: Net Present Value: A set of cash flows that happen at various dates are considered to have a net…

Q: The future worth in year 8 for the cash flows shown is $38,000. At an interest rate of 7% per year,…

A: Future worth is also called future value. Future value means the value of a quantity of money or…

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: Calculate the equivalent uniform annual worth for the following set of cash flows. Round your answer…

A: Annual interest rate = 2% Period = 5 Years Initial investment = $ 755 Annual revenue = $ 503

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: The cash flows for an investment with an economic life of 5 years are as follows: k0 = -7000, k1 =…

A:

Q: A set of cash flows begins at $60,000 and increases at 10% per annum for the next 12 years. If the…

A: Begining Cash flow is $60,000 Cash flow growth rate is 10% per annum Time Period is 12 Years…

Q: What is the present value of the following cash flow at a 12% discount rate?…

A: Present value is calculated using the discounting factor of Rate @ 12%

Q: Calculate the Payback Period using the following Information All figures are in OMR Initial…

A: The payback period is used in the case of capital budgeting decisions in order to decide whether to…

Q: 11) For the Cash Flow Diagram (CFD) shown below and an interest rate of 10% per year, find: A) The…

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

Q: 10. The appropriate discount rate for the following cash is 10% per year: Year flows 2 तत 3 Cash…

A: The future worth of the current amount can be computed after adding up the product of the FVIF for…

Q: For what interest rate will an uniform cash flow of $30,000 per year for 20 years, (t=1 to 20) be…

A: Present value of annuity is the present value of all the stream of cash flow that occur in future.

Q: For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth…

A: The present value refers to the discounted value of the future cash flows. Discounting is done till…

Q: Different cash flow. Given the following cash inflow at the end of each year, , what is the future…

A: Every investor wants to make a profit. To decide which investment is good, investors should use the…

Q: rmine the present value equivalent of a geometric sequence of annual cash flows starting at P 1,254…

A: Geometric sequence is that sequence in which the money grow each year by some fixed percentage of…

Q: Number of years to provide a given return In the information given in following case, determine the…

A: In an Ordinary Annuity , the cash flow occurs at the end of each fixed period.

Q: The future worth in year 8 for the cash flow series shown is $20,000. At an interest rate of 10% per…

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: For what interest rate will an uniform cash flow of $40,000 per year for 10 years, (t=1 to 10) be…

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

Q: Given the following cash flows, what is the future value at year ten when compounded at an interest…

A: Future value of an asset is the value of that asset at a future date at a given growth rate. It is…

Q: Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of…

A: Future Value of annuity due is the annuity in which payment is made at the beginning of the period…

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A: Present value of cash flow is equivalent amount of money today of the future cash flow based on the…

Q: Consider the following cash flows. The interest rate is 10%. What is the total wealth after 2 years…

A: Given, we are supposed to find out the cashflow price and the  amount which is to be received after…

Q: Given the following end of year cash flows what is the IRR of this project? Also assume that…

A: IRR of project is computed by following formula:-IRR = Lower rate + NPV means Net present value.NPV…

Q: What is the present worth for the investment represented by the given cash flow? Interest is 12%.

A: Present Worthbis the sum of present value of cash flows discounted at the required rate of return.

Q: $500. The interest rate is 8% per year. Cash flow, $ Year O 1 2 3 125 125 + G 125+ 2G nown below,…

A: First cash flow=$125Equivalent cash flow=$500Interest rate=r=8%Period=n=7 years

Q: Find the size of B in the following cash flow diagram if the interest is 8% per year. $130 1 H 2…

A: Data given: Rate=8% Arithmetic gradient from year 1 to 5= - $20

Q: For the cash flows shown in the diagram, determine the value of x that will make the future worth in…

A: Future value of Annuity formula is    Future value of first 5 years of Annuity x , at end of 5…

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 set of cash flows begins at $66660 the first year, with an increase of 10% per year for 9 years.…

A: The present value of cash inflows refers to the current value of future cash inflows that are…

Q: $27,300.00

A:

Q: Construct a cash flow diagram that represents the amount of money that will be accumulated in 1 year…

A: Initial Investment is 6% The time period is 1 year The interest rate is 6% per year compounded…

Q: Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8,…

A: Let CFn be the cashflow in year n. CF1 to CF5 = $2000 CF6 to CF8 = $3000 CF9 = $4000 r = 14%

Q: Consider a geometric series of cash flows whose first cash flow occurs at time 15 and continues…

A: We will apply the required formula assuming that the increase rate has a geometric gradient of @10%…

Q: The future value of a cash flow occurring 36 months from today is $15000, and its present value is…

A: Individuals deposit an amount in an account at a given interest and predetermined duration in order…

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: The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is…

A: The future value of a cash flow series depends on the interest rate and time period for which it has…

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: b) Aida Kamilia won RM1,000,000 in a contest, to be paid in twenty RM50,000 payments at yearly…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Given the following cash flows, what is the future value at year ten when compounded at an interest…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000.  Cash…

A: Cash flow at time 5 = $ 5000Annual growth in cash flow =-7%Number of cash flows = 9Future value…

Q: Ann knows that the effective rate is 17% per year compounded monthly. She has asked you to evaluate…

A: Interest rate (r) = 17% per annum  = 1.41667% per month Let cashflows be denoted by CFn. As the…

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.