Consider the following three cash flow series:End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C0-$1.000-$2.490Y1X$3,400Y21.5X$3,100Y32.0X$2,8002Y42.5X$2,5002Y53.0X$2,2002YDetermine the values of X and Y so that all three cash flows are equivalent at an interest rate of 13% per year compounded yearly.X: $Y: $

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Description: Consider the following three cash flow series:End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C0-$1.000-$2.490Y1X$3,400Y21.5X$3,100Y32.0X$2,8002Y42.5X$2,5002Y53.0X$2,2002YDetermine the values of X and Y so that all three cash flow

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Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C 0 -$1,000 -$2,490 Y 1 X $3,400 Y 2 1.5X $3,100 Y 3 2.0X $2,800 4 2.5X $2,500 5 3.0X $2,200 > > > ~ ~ ~ 2Y 2Y 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 13% per year compounded yearly. x. $

Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C 0 -$1,000 -$2,490 Y 1 X $3,400 Y 2 1.5X $3,100 Y 3 2.0X $2,800 4 2.5X $2,500 5 3.0X $2,200 > > > ~ ~ ~ 2Y 2Y 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 13% per year compounded yearly. x. $

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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The following table indicates the net cash flows of a capital asset: Year Net Cash Flow 0 $-159,000 1 $59,000 2 $59,000 3 $59,000 4 $59,000 Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. Calculate the cash payback period using the formula method. Payback: Answer years
Consider the following cash flows: Year Cash Flow 0 -$ 14,800 1 8,400 2 7,600 4,300 a. What is the profitability index for the above set of cash flows if the relevant discount rate is 10 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 15 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 22 percent? Note: 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
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Assume that you are looking at 3 perpetuities. P1 has annual cash flows of $850 in Yeata 1 through infinity (1-infinity) and present value at Year 0 of $10,119.047619. P2 has annual cash flows of $620 in Yeara 11 through infinity (11-infinity) and same effective rate as P1. P3 has annual cash flows of $480 in Years 25 through infinity (25-infinity) and same effective rate as P1 and P2. Determine the value of all three perpetuities when evaluated at Year 35.
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) For each of the following, determine the expected cash flows. Cash FlowEstimate ProbabilityAssessment a. $ 4,800 20% 6,300 50% 7,500 30% b. $ 5,400 30% 7,200 50% 8,400 20% c. $(1,000) 10% 3,000 80% 5,000 10%
Consider the following cash flows: Year Cash Flow 0 –$ 32,500 1 14,300 2 17,400 3 11,700 What is the IRR of the cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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Consider the following cash flows: Year Cash Flow 0 1 2 3 $19,400 10,400 9,320 6,900 What is the IRR of the above set of cash flows? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return 4 Prev
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