Consider the following cash flows: Year Cash Flow $33,000 13,400 18,300 10,800 3 a. What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV at a discount rate of 23 percent? (A negative answer should be

Consider the following cash flows: Year Cash Flow $33,000 13,400 18,300 10,800 3 a. What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV at a discount rate of 23 percent? (A negative answer should be

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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Consider the following cash flows and interest rates: 0 r = 2.5% 1 r = 1.5% 5,000 2 r = 1.9% 5,000 3 r = 2.4% 5,000 a. Calculate the present value of these cash flows (at time 0). b. Calculate the future value of these cash flows (at time 4). 4
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
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).)
Uneven Cash Flow Stream Year Cash Stream A Cash Stream B 1 $100 $300 2 400 400 3 400 400 4 400 400 5 300 100 What is the value of each cash flow stream at a 0% interest rate? Round your answers to the nearest cent.Stream A $ _______Stream B $ _______
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 an 8% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A $0 $100 $350 $350 $350 $300 Stream B $0 $300 $350 $350 $350 $100 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: $
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: $
(a) Calculate the equivalent amount P at the present time. The equivalent amount P at the present time is $ (b) Calculate the single-payment equivalent to F at n = 5. The single-payment equivalent to Fat n = 5 is $ (Round to the nearest dollar.) (c) Calculate the equivalent equal-payment series cash flow A that runs from n=1 to n = 5. The equivalent equal-payment series cash flow A is $ (Round to the nearest dollar.) (Round to the nearest dollar.)
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

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