can any one solve it? Construct a cash flow diagram for the following situation. Cash Flow, S -20,000 Year 14 +9,000 Salvage value +2,000 At interest rate of 10%, find a) Present worth in year 0 b) Equivalent annual equal from year I to 4 e) Arithmetic gradient (G) if the base amount in year I is $3,000

can any one solve it? Construct a cash flow diagram for the following situation. Cash Flow, S -20,000 Year 14 +9,000 Salvage value +2,000 At interest rate of 10%, find a) Present worth in year 0 b) Equivalent annual equal from year I to 4 e) Arithmetic gradient (G) if the base amount in year I is $3,000

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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get the answer as per posiblity
Find the value of the unknown quantity, P0, that establishes equivalence in the cash-flow diagram below. Suppose i = 20% per year. Use an annuity factor and a uniform gradient factor in your solution.
(Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment Alternatives End of Year A B C 1 $ 18,000 $ 18,000 2 18,000 3 18,000 4 18,000 5 18,000 $ 18,000 6 18,000 90,000 7 18,000 8 18,000 9 18,000 10 18,000 18,000 (Click on the icon in order to copy its contents into a spreadsheet.) Assuming an annual discount rate of 23 percent, find the present value of each investment. Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 23 percent? $ enter your response here (Round to the…
a) How many possible rate of returns b) If the reinvestment ratec 15%, find the composite rate of return. Year 1 Net Cash Flow -10,000 +15,000 +5,000 -7,000
A real estate investment has the following expected cash flows: Year Cash Flows 1 $14,000 2 19,000 3 19,000 4 25,000 The discount rate is 3 percent. What is the investment’s present value? Round your answer to 2 decimal places
A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money? Draw the cash flow diagramwith your solution.
USING EXCEL SHOW HOW TO SOLVE THE FOLLOWING:
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.)
1. Draw a cash flow diagram showing payments of S6000 now, $2500 two years from now and $4500 six years from now. Interest rate is 9% per year. For the given cash flows find the: a) Total present worth equivalent. b) Total future worth equivalent. and c) Equivalent annual worth (uniform series) from year 1 to 6.
A) Consider the following two mutually exclusive projects: Cash flow (A) -RM300,000 20,000 50,000 50,000 390,000 i) ii) Year 0 1 2 3 4 Cash flow (B) -RM40,000 19,000 12,000 18,000 10,500 If you apply the payback criterion, which investment will you choose if you set the maximum payback period of 3 years? If you apply the internal rate of return (IRR) criterion, which investment will you choose, if you require a 15% return?
Assume a project has the following expected cash flows: What is the payback period? Year 0 1 2 3 4 Expected Net Cash Flow ($400,000) 100,000 150,000 200,000 250,000
Consider the investment project with the following net cash flows: What would be the value of X if the project's IRR is 25%?

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