Consider the following cash-flow sequence of returns (in thousands of dollars) at the end of the current year, and the next 5 years given as follows: 10 10 15 20 20 20 At a 10% nominal annual interest rate, the present value of the cash value sequence is given by 75,290 65,990 58,273 78,370

Q: Find the present worth of all the cash disbursements using gradient interest formulas if money is…

A: First payment=P5000Gradient=P1000Number of payments=4Interest rate=15%

Q: then the present value factor of the lumpsum is:

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: The function f(x) = 600 represents the rate of flow of money in dollars per year. Assume a 10-year…

A:

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: 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: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: 1. Consider the cash flow series shown below. Determine the required annual deposits (end of year)…

A: STEP 1:Here the given data is: -Money deposited in year 4 = $1000Money deposited in year 5 =…

Q: over the past 3 years an investment returner( per year)20%,-13%,5%. what is thr annual standard…

A: Given:

Q: You have cash flows of $100 at the end of year 1, $200 at the end of years 2 and 3, and $300 at the…

A: The problem requires the determination of the present value of the cash flows using discounting and…

Q: Find the present value of a continuous stream of income over 4 years when the rate of income is…

A: The problem is asking us to find the present value of a continuous stream of income over 4 years.…

Q: an investment that makes 20% one year and loses 20% the next yea following returns for this…

A:

Q: The table below shows a series of cashflows. At an interest rate of 10% per year, what are the…

A:

Q: What is the future value of a stream of receipts that is $1,000 in year 1 and which increases by 4%…

A: The future value of this stream of receipts can be calculated using the future value of an annuity…

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: After tax cash flows are 100,000 a year for 5 years. There is no terminal value. The payback period…

A: Initial Investment = cashflow per year × payback period                             =100000 × 3=…

Q: What is the present value of a stream of $800 cash payments, each to be made at the end of the next…

A: Given:

Q: What is the present value of 24 monthly cashflows of $420 each starting today if the interest rate…

A: Using excel PV function, This is question of annuity due since cashflow starting today

Q: f the stated interest rate is 10%, number of years is 8 , and market interest rate is 12% compounded…

A: Formula: Present value Annuity factor = [ 1 - 1 / ( 1 + i )N ] / i

Q: You deposit $10,000 in an account that pays 4.5% interest compounded quarterly. Use the future value…

A: Interest rate (r) = 4.5% compounded quarterly Hence, compounding frequency (k) = 4

Q: Order the present values of these three cash flow with highest PV on top, middle PV in the middle,…

A: Present value factor is computed as follows:-present value factor = wherer= interest rate n= time…

Q: Find the nominal interest rate compounded daily.  at which $1000 will become $2000 in five years

A: Basic details: Investment = Present Value = $1000 Future Value = $2000 Time in Years = 5 Years…

Q: The discount rate is 8.25%.  What is the present value of five annual $41 cashflows? The first…

A: Present Value = Future Value /((1+i)n) n is the Number of Years

Q: The returns from an investment are 1% in Year 1, 5% in Year 2, and 3.8% in the first half of Year 3.…

A: The annualized return is a measure of the average annual gain or loss on an investment over a…

Q: If the rate of earnings is 12% and the cash to be received in two years is $20,000, determine the…

A: Present value amount = Cash to be received in two years x present value of $1 at compound interest…

Q: For a present sum of $620,000, determine the annual worth (in then-current dollars) in years 1…

A: Present sum = 620000 i = 12% inflation rate = 5% n=7 years PW = 620000(A/P,12%,7) =620000(0.2191177)…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.