Consider the following cash flows:YearCash Flow0-$ 29,20012314,50014,40010,800a. What is the profitability index for the cash flows if the relevant discount rate is 12 percent?Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.b. What is the profitability index if the discount rate is 17 percent?Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.c. What is the profitability index if the discount rate is 24 percent?Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.a. Profitability indexb. Profitability indexc. Profitability index

Calculate the profitability index for part (a) through (c) using Excel as follows:Formula…

Answered: Consider the following cash flows: Year…

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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For the given cash flow, Which of the following statements is correct? Year 1 3 +2,000 -500 -8,100 +6,800 Select one: a. There are two interest rate b. The present worth converts in sign from positive to negative two times C. Non-conventional cash flow d. all the above %24
Year Cash Flow 0 -$ 17,400 1 9,700 8,600 5,100 2 3 a. What is the profitability index for the set of cash flows if the relevant discount rate is 11 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. What is the profitability index for the set of cash flows if the relevant discount rate is 16 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the profitability index for the set of cash flows if the relevant discount rate is 23 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. Profitability index b. Profitability index c. Profitability index
500 Calculate the value of X to suit this cash flow diagram with i = 9%. X is an end of period payment. Provide modified cash flow diagram(s) necessary for your solution, and show all work. 400 300 200 100 2.
Two cashflows A and B consist of three payments at t = 0, 1, 2 where t is in years. Cashflow A is C A 0 = .82, CA 1 = −1, CA 2 = 2 while cashflow B is C B 0 = .01, CB 1 = .8, CB 2 = 1. Find the interest rate where the two cashflows are equal (assuming the same interest rate for both cash flows.)
What is the future value in year 5 of the following cash flows given a discount rate of 9%? Year 2 4 5 Cash Flow $862 $669 $905 (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Explain Well all question with proper answer.
3. Find the internal rate of return
What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals.Year 0 cash flow = -116,000Year 1 cash flow = 28,000Year 2 cash flow = 43,000Year 3 cash flow = 38,000Year 4 cash flow = 41,000Year 5 cash flow = 40,000Year 6 cash flow = 37,000
a. Find the present values of the following cash flow streams at a 6% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 1 3 4 Stream A $0 $150 $400 $400 $400 $300 Stream B $0 $300 $400 $400 $400 $150 Stream A: $ Stream B: $ b. What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $ Stream B: $
Assume $10,000 is the present value of the cash flows shown below at a discount rate of 10%. If the three missing cash flows are equal amounts, then the missing cash flow is 0 10% |--- 1 ? 2 ? 3 ? 4 --| $11,000 Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Numeric Response
Assume the appropriate discount rate for the following cash flows is 9.3 percent. Year 1234 Cash Flow $1,650 1,550 1,250 1,050 What is the present value of the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
Lowering the discount rate on a cash flow will its present value. A. decrease, then increase O B. increase, then decrease O C. decrease D. increase

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