Answered: Consider the cash flow diagram below. F…

Business

Finance

Consider the cash flow diagram below. F n If P = 65. n = 9 and i = 16%, the value of E is

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.12: Uneven, Or Irregular, Cash Flows

Problem 1ST

See similar textbooks

Related questions

Q: 7.11 Determine the rate of return for the following cash flow series. + 0 1 4000 i = ? 12,000 2 3 4…

A: The rate of return (i) is given by the rate at which sum of present value of all cashflows (NPV) is…

Q: a 5-year useful life and, no salv: llowing four methods of depred

A: Given as, Investment= $100, 000 Life= 5 years Percentage= 10 %.

Q: An engineering alternative has a first cost of $12700, and is expected to bave net annual receipts…

A: As interest rate is 0% there will be no discounting.

Q: 3. Consider the four mutually exclusive alternatives Alternative A в D Initial Cost Uniform Annual…

A: benefit / cost = pv of future benefitinitial cost

Q: QZY, Inc. is evaluating new widget machines offered by three companies. The chosen machine will be…

A: To evaluate which machine to choose, we can use the Rate of Return (ROR) analysis. The ROR is the…

Q: ia = r m 1+-) - 1 m PART A.) Find the effective annual interest rate for a credit card that lists an…

A: The effective annual rate is the return that the investment provides after considering the effect of…

Q: Calculate the missing information on the revolving credit account. Interest is calculated on the…

A: We can determine the missing values using the formula below:

Q: A firm has issued P1,000 bonds with a 10-year maturity and a face value of P1,000,000. Quarterly…

A: Face value of the bond = P1,000 Quarterly maturity period (n) = 40 (i.e. 10 years * 4) Quarterly…

Q: Resurfacing a particular section of highway would result in cost of maintenance savings of $500 per…

A: Capital budgeting is a quantitative approach to evaluate an investment in a capital project. It…

Q: The cash flows for two independent machines are given below. If you are the decision- maker, which…

A: Net Annual Revenue of A = 9000-6000=3000 AW of Machine A = -15,000 (A/P,10%,5)+3000+1000 (A/F,10%,5)…

Q: Using the incremental rate of return (AROR) analysis. Determine the best altermative. MARR =10%.…

A: Incremental rate of return or Net present worth, Best alternative is

Q: 8. Mr. Garcia invested in a Php 1,000 bond for one year with a coupon rate of 7% and was offered at…

A: Bonds are debt instruments issued by companies. The value of a bond (i.e. the amount to be paid…

Q: A loan is repaid with equal annual payments of $450 at the end of each year for 10 years AEIR-3% for…

A: If a payment is made repeatedly for certain period at regular intervals it is termed as Annuity.…

Q: As an innovative way to pay for various software packages, a new high-tech service company has…

A: Different streams of payments have been given. We have to find the one that's most beneficial from…

Q: Calculate the nominal rate for each of the following general ordinary annuities given the present or…

A: The present and future value of an annuity: When a fixed sum of money is received or paid at…

Q: Bond Convexity of the Asset 12.026 Assets 5yr bond bought at a yield of 3.4% $550M (lending money)…

Q: Q1. On March 24, 2014, Brendan and Madison borrow $18,000 each at a simple interest rate r =…

A: There are different methods to calculate simple interest on a loan, and these methods can vary from…

Q: For the cash flow diagram given below, compute the rate of return. 0 P = 1000 1 $150 2 $200 3 $250 4…

A: The IRR is the investment discount rate that corresponds to the difference between the original…

Q: 10 Years 14. Given the data for two alternatives, choose the better a analysis. MARR = 8%…

A: B/C ratio = PV of Benefits/PV of costs. Alternative X: initial cost = 100,000 Operating costs…

Q: 10. How long does it take Php100,000 to earn Php5,001 interest if money is worth 8% compounded…

A: Let the duration = n years Initial amount (I) = Php 100000 Interest = Php 5001 Total final amount…

Q: 1.) A.) Which of the following statements is most correct? a. A 5-year P100 annuity due will have a…

A: All these options are based on annuity and mortgage payments.

Q: On January 1, 2020 a discount bond promises to pay $115 after five years on January 1, 2025 and is…

A: An interest rate is the rate that is charged by the lender from the borrower for the specified…

Q: 7. In a project, the initial outlay is R$30,00,000; useful life of the project is 10 years; net cash…

A: NPV is the difference between Present Value of cash Inflows and Initial Investment. A project with…

Q: Compute the rate of return represented by the cash flow. Year Cash Flow -$14,000 1 5,000 5,500 3…

A: Rate of return = IRR = that rate that makes the NPV as nil. We know that PV = FV/(1+r)^n Let the…

Q: What is the maximum amount you would pay for an asset that generates an income of $400,000 at the…

A: Since you have asked multiple question , we will solve the first question for you. If you want any…

Q: first payment being made today. If bank pays compounding, how much will be in your account after 10…

A: (Note: “Since you have posted multiple questions, we will provide the solution only to the first…

Q: Problem B: RS Bank pays interest at the rate of 7.6% annually compounded quarterly. How much money…

A: Note: “Since you have posted multiple questions, we will provide the solution only to the first…

Q: Wayne Company is considering a long-term investment project called ZIP. ZIP will require an…

A: Annual Rate of Return refers to the actual rate of return earned in the year from the investment…

Q: ssard Skateboard's sales are expected to increase by 25% from $9.0 million in 2019 to $11.25 million…

A: Current sales=$9 MGrowth rate=25%Total assets=$5 MAccount payable=$450000Accrual=$450000Profit…

Q: Mateo deposits $5,000 at the end of years 2, 4 and 6. If interest is 8.2% compounded annually,…

A: Amount of deposits made is $5,000 Interest rate is 8.2% Compounded annually Total number of deposits…

Q: How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth…

A: Loan Amount = P 1,400,500.00 Time Period = 20 Years Interest Rate = 518%

Q: Three alternatives have the following cost data associated with them: Data Alt. 1 Alt. 2 Alt. 3 Alt.…

A: EUAW is one of the capital budgeting technique. It is used to compare the projects with unequal…

Q: Cost Behavior Analysis in a Restaurant. High-Low Cost Estimation Assume a Papa John's restaurant has…

A: Lets understand the basics. In high low method, total costs gets separated between the fixed costs…

Q: A high school student received from his wealthy ant $15,000. He decided to put it in an account…

A: Here, Amount Received today (PV) is $15,000 Amount Required (FV) is $25,000 Interest Rate (r) is…

Question

not use of the excel

Consider the cash flow diagram below.
F
n
If P = 65, n = 9 and i = 16%, the value of F is
closest to
17.09
247.19
158.60
O 244.63

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

X FIND (X) FOR THE SHOWN CASH-FLOW DIAGRAMS. USE: i.9%. SHOW CALCULATIONS. 360 (each)
What is the internal rate of return of the following cash flow diagram? a. 20.0% b. 18.2% c. 17.5% d. 15.0%.
In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand cash-flow diagram? Let i = 12%.
Consider the following cash flow diagram. What is the value of X if the internal rate of return is 15%? Solve, a. $246 b. $255 c. $281 d. $290.
Which of the following cash flow streams could be evaluated using the basic Internal Rate of Return (IRR) method? A. CF1 $100 CF2 = -$20 CF3 - $20 B. CF1 =-$100 CF2 $20 CF3 $20 c. CF1 -$100 CF2 = $20 CFJ -$20 D. CF1 $100 CF2 = $20 CFJ $20 All of the above E.
Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %10. Cash Flow Year 0 1 2 3 4 5 6 7 Select one: a.0.245007 b.0.19667 c.0.168017 d.0.204146 e.0.274516 f.0.181262 g.0.228861 h.0.264278 -3000 3000 6000 -1000 2000 4000 -5000 8000
= 6) Find the internal rates of return on a cash flow with deposit amounts of A = A₁ = 240, B₁ 120, A₂ = 20, B₂ = 290, and withdrawal amounts of Bo at times t = 0, t = 1, t = 2, respectively. = 40, 10,
Consider the calculation of an external rate of return (ERR). The positive cash flows in the cash flow profile are moved forward to t = n using what value of i in the (F|P,i,n–t) factors? a. 0 b. The unknown value of ERR (i′) c. MARR d. IRR.
For the arithmatic gradient of cash flow given below, if G= $150 , the value at year 23(V23) is:
The down payment or equity needed for this investment is $60,000 (outflow) Cash Flow $15,000 N 1 2 3 4 5,000 -4,000 8,000 Sale 4 $65,000 Savings Rate is: 1.5% and Loan Rate is 8%
Please put formula or example for the calculation on Cashflow, PV, PV @ 8%, and Cumulative. Thanks!
Question attached