EOY2.CashFlow$15,000 $22,000 $29,000 $36,000$8,000What is the uniform annual equivalent if the interest rate is 12% per year?( Select ]What is the future equivalent if the interest rate is 12% per year?(Select J( Select)What is the present equivalent if the interest rate is 12% per year?

Interest Rate = 12% Year Cash Flow 1 8000.00 2 15000.00 3 22000.00 4 29000.00 5…

Answered: ΕΟΥ 3 4 Cash Flow $15,000 $22,000…

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

See similar textbooks

Similar questions

Question 3 Find the value of x in the diagram below that would make the equivalent present worth of the cash equal to $ 22,000, if the interest rate is 13% per year. P=$22,000 A= S1.000 0 12 3 4 5 6 7 8 9 10 11
Economics What is the present equivalent (at EOY 0) of the following cash-flows if the annual interest rate is 8% for year 1, 10% for year 2, and 7% for year 3? EOY 1 (S1,500); EOY 2 ($7,600): EOY 3 (-$2500)? O a 5980.808 O b. 6025.854 Oc. 5819.488 Od. 6104.968 Oe. 5736.697
Q1! Solve for the present worth of this cash flow using at 12% interest rate annually. t60 130 160 190 | 2 3 4 5 1o 1 Ł30 Ł30 £90
What is the equivalent uniform annual payment for the following cash flows if the interest rate is 10%? Populate the following table and compute the equivalent uniform annual payment. Show all work and provide an explanation. Do not use Excel. [Hint: This problem is a mix of annuity, gradient, and a single future cash flows.] ΕΟΥ Cash Flows Annuity Gradient Future 1 $2,000 2 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $14,000 IN 3 st 4 5 6 7. 8 9 10
Q3. You borrow $5000 today. The loan is due in 5 years, with interest at ji = 7%. It is agreed that you can instead pay $1000 one year from now, $X two years from now and $2000 three years from now. If money is worth j4= 8%, what is the value of X?
Q10.4. Find the present worth sum of money that would be equivalent to the future amounts of $5000 in year 6 and $7000 in year 8 if the real interest rate is 10% per year and the inflation rate is 5% per year. Solve using the factors and their equations with (a) an inflation-adjusted rate, and (b) the real interest rate.
14) Consider the following cash flows. The interest rate is 8%. What is the duration (hint: you need PV)? Year 0 1 2 3 4 Cash flow 150 120 100 200
Q3: a) The anticipated cash flow diagram for a potential project is shown below. The interest rate is 9% per year. What is the future equivalent of the cash flows (i.e., convert the cash flows to a single future amount at the end of year 8)? (Your answer should be in this form XXXX) $480 $480 $480 $480 $480 $480 3. 8. -$300 -$300 Your answer 2)
8. How much would you invest today in order to receive $30,000 in each of the following independent scenarios: 10 years at 9% 8 years at 12% 14 years at 15% 24 years at 10% complete the following table: Present Value (PV) Rate Time (Years) Future Value (FV) A ? 9% 10 $30,000.00 B ? 12% 8 $30,000.00 C ? 15% 14 $30,000.00 D ? 10% 24 $30,000.00 PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the present value of $1 table in the verify that your answers above are correct: Future Value (FV) Rate Time (Years) FV Factor (from Table) Present Value (PV) A $30,000.00 9% 10 ? ? B $30,000.00 12% 8 ? ? C $30,000.00 15% 14 ? ? D $30,000.00 10% 24 ? ? PLEASE NOTE: All PV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).
5. Solve the following two independent scenarios: A. How much must be invested now to receive $30,000 for 10 years if the first $30,000 is received one year from now and the rate is 8%? Future Value PV FV Tables Factor Present Value ? ? ? PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e. $12,345). Using the appropriate EXCEL spreadsheet, the answer = ? PLEASE NOTE: The dollar amount will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). B. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate? Future Value PV FV Tables Factor Net Present Value ? ? ? PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e.…
1. Ati= 10% per year and a loan amount of $10,000. If N = 20, what are the payments and future value? Solve this problem using %3! a. Excel b. Formula
1) Consider the following timeline: Date Cash flow 0 $100 2 $200 3 $300 If the current market rate of interest is 8%, then what is the present value (PV) of this timeline as of year 0?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS