* l 48% 2:55 pmDocument (52)mentTime verue of Money-18UNEVEN CASH FLOW STREAMFind the present values of the following cash flow streams at 8% compounded annually.a.12+$400345$0$0Stream A$100$400$400$300Stream B$300$400$400$400$100b. What are the PVs of the streams at 0% compounded annually?S-19FUTURE VALUE OF AN ANNUITY Your client is 40 years old; and she wants to begin savingfor retirement, with the first payment to come one year from now. She can save $5,000 peryear, and you advise her to invest it in the stock market, which you expect to providean average retum of 9% in the future.a. If she follows your advice, how much money will she have at 65?b. How much will she have at 70?c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70.If her investments continue to eam the same rate, how much will she be able towithdraw at the end of each year aftor retirement at each retirement age?:ndowsG

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Find the present values of the following cash flow streams at 8% compounded annually. 1 2 3 4 5 $0 $0 Stream A $100 $400 $400 $400 $300 Stream B $300 $400 $400 $400 $100 b. What are the PVs of the streams at 0% compounded annually?

Find the present values of the following cash flow streams at 8% compounded annually. 1 2 3 4 5 $0 $0 Stream A $100 $400 $400 $400 $300 Stream B $300 $400 $400 $400 $100 b. What are the PVs of the streams at 0% compounded annually?

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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Concept explainers

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A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

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* l 48% 2:55 pm
Document (52)
ment
Time verue of Money
-18
UNEVEN CASH FLOW STREAM
Find the present values of the following cash flow streams at 8% compounded annually.
a.
1
2
+
$400
3
4
5
$0
$0
Stream A
$100
$400
$400
$300
Stream B
$300
$400
$400
$400
$100
b. What are the PVs of the streams at 0% compounded annually?
S-19
FUTURE VALUE OF AN ANNUITY Your client is 40 years old; and she wants to begin saving
for retirement, with the first payment to come one year from now. She can save $5,000 per
year, and you advise her to invest it in the stock market, which you expect to provide
an average retum of 9% in the future.
a. If she follows your advice, how much money will she have at 65?
b. How much will she have at 70?
c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70.
If her investments continue to eam the same rate, how much will she be able to
withdraw at the end of each year aftor retirement at each retirement age?:ndows
G

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1) What is the IRR of the following cashflows? 2) What is the NPV at a 15% target yield? 3) How Much can I pay for the property with a 15% target yield? n 0 ($275,000.00) 1 $21,000.00 2 $12,000.00 3 $32,000.00 4 $41,230.00 5 $48,750.00 $51,230.00 6 $291,000.00
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Please aware the questions a
the project's net cash flow is listed as follows. Please calculate its simple payback period and discounted payback period (i=10%). End of 2 3 4 1 5 Year $12 $11 $10 $10 $9, ,00 ,00 ,00 Net -$4 Cash 2,00 ,00 00 Flow
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What is the IRR for this project? Year Cash Flow in $ 0 ($1000) 1 400 2 400 3 600
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