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Compute for the following. Given the uneven streams of cash flows shown in the following table, answers parts A & B: Cash Flow Stream End of Year A в Php 50,000 Php 10,000 1 2 40,000 20,000 3 30,000 30,000 4 20,000 40,000 10,000 50,000 Undiscounted Php 150,000 Php 150,000 Total a. Find the present value of each stream, using a 15 percent discount rate STREAM A STREAM B Year (t) CF: x (1+15%)-t Present Value (PV) Year (t) CF: x (1+15%)t Present Value (PV) 1 50,000 x .869565 PHP 43,478.26 10,000 x .869565 PHP 8,695.65 40,000 x .756144 PHP 30,245.75 2 20,000 x .756144 PHP 15,122.87 3 30,000 x .657516 PHP 19,725.49 3 30,000 x .657516 PHP 19,725.49 PHP 11,435.06 PHP 22,870.13 PHP 24,858.84 4 20,000 x .571753 4 40,000 x .571753 5 10,000 x .497177 PHP 4,971.77 50,000 x .497177 TOTAL PHP 109,856.33 ТОTAL PHP 91,272.98 b. Compare the calculated present values, and discuss them in the light of the fact that the undiscounted total cash flows amount to Php 150,000 in each case. PLS, ANSWER LETTER B ONLY.

Compute for the following. Given the uneven streams of cash flows shown in the following table, answers parts A & B: Cash Flow Stream End of Year A в Php 50,000 Php 10,000 1 2 40,000 20,000 3 30,000 30,000 4 20,000 40,000 10,000 50,000 Undiscounted Php 150,000 Php 150,000 Total a. Find the present value of each stream, using a 15 percent discount rate STREAM A STREAM B Year (t) CF: x (1+15%)-t Present Value (PV) Year (t) CF: x (1+15%)t Present Value (PV) 1 50,000 x .869565 PHP 43,478.26 10,000 x .869565 PHP 8,695.65 40,000 x .756144 PHP 30,245.75 2 20,000 x .756144 PHP 15,122.87 3 30,000 x .657516 PHP 19,725.49 3 30,000 x .657516 PHP 19,725.49 PHP 11,435.06 PHP 22,870.13 PHP 24,858.84 4 20,000 x .571753 4 40,000 x .571753 5 10,000 x .497177 PHP 4,971.77 50,000 x .497177 TOTAL PHP 109,856.33 ТОTAL PHP 91,272.98 b. Compare the calculated present values, and discuss them in the light of the fact that the undiscounted total cash flows amount to Php 150,000 in each case. PLS, ANSWER LETTER B ONLY.

Essentials Of Investments
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
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Compute for the following. Given the uneven streams of cash flows shown in the following table, answers parts A & B: Cash Flow Stream End of Year A B Php 50,000 Php 10,000 1 2 40,000 20,000 30,000 30,000 4 20,000 40,000 10,000 50,000 Undiscounted Php 150,000 Php 150,000 Total a. Find the present value of each stream, using a 15 percent discount rate STREAM A STREAM B Year (t) CF: x (1+15%).t Present Value (PV) Year (t) CF: x (1+15%).t Present Value (PV) 50,000 x .869565 PHP 43,478.26 1 10,000 x .869565 PHP 8,695.65 2 40,000 x .756144 PHP 30,245.75 2 20,000 x .756144 PHP 15,122.87 3 30,000 x .657516 PHP 19,725.49 3 30,000 x .657516 PHP 19,725.49 4 20,000 x .571753 PHP 11,435.06 4 40,000 x .571753 PHP 22,870.13 5 10,000 x .497177 PHP 4,971.77 50,000 x .497177 PHP 24,858.84 ТОTAL PHP 109,856.33 TОTAL PHP 91,272.98 b. Compare the calculated present values, and discuss them in the light of the fact that the undiscounted total cash flows amount to Php 150,000 in each case. PLS, ANSWER LETTER B ONLY.
Transcribed Image Text:Compute for the following. Given the uneven streams of cash flows shown in the following table, answers parts A & B: Cash Flow Stream End of Year A B Php 50,000 Php 10,000 1 2 40,000 20,000 30,000 30,000 4 20,000 40,000 10,000 50,000 Undiscounted Php 150,000 Php 150,000 Total a. Find the present value of each stream, using a 15 percent discount rate STREAM A STREAM B Year (t) CF: x (1+15%).t Present Value (PV) Year (t) CF: x (1+15%).t Present Value (PV) 50,000 x .869565 PHP 43,478.26 1 10,000 x .869565 PHP 8,695.65 2 40,000 x .756144 PHP 30,245.75 2 20,000 x .756144 PHP 15,122.87 3 30,000 x .657516 PHP 19,725.49 3 30,000 x .657516 PHP 19,725.49 4 20,000 x .571753 PHP 11,435.06 4 40,000 x .571753 PHP 22,870.13 5 10,000 x .497177 PHP 4,971.77 50,000 x .497177 PHP 24,858.84 ТОTAL PHP 109,856.33 TОTAL PHP 91,272.98 b. Compare the calculated present values, and discuss them in the light of the fact that the undiscounted total cash flows amount to Php 150,000 in each case. PLS, ANSWER LETTER B ONLY.
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