Given: Cash transactions as shown in cash flow diagram.%24g = 4%/yr (positivetransactions decreasesfrom year to year)i = 10% per year134.5712131415 Yrsg = 5%/yr (negativetransactions becomemore negative)Required:(i) The net equivalent value at year 0 (Po)

Answered: Given: Cash transactions as shown in…

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

a. What is the present value of the following set of cash flows, discounted at 9.9% per year? Year 1 2 3 4 5 CF $12 $22 $32 $42 $52 b. What is the present value of the following set of cash flows, discounted at 9.9% per year? Year 1 2 3 4 CF $52 $42 $32 $22 $12 c. Each set contains the same cash flows ($12, $22, S32, $42, $52), so why is the present value different? a. What is the present value of the following set of cash flows, discounted at 9.9% per year? Year 1 2 4 CF $12 $22 $32 $42 $52 The present value of the cash flow stream is S (Round to the nearest cent.)
What is the internal rate of return (IRR) of the following set of cash flows? (Enter your answer as a percentage rounding to 2 decimals, e.g., 12.34% as 12.34) Year O cash flow = -146,000 Year 1 cash flow = -32,000 Year 2 cash flow= 60,000 Year 3 cash flow = 70,000 Year 4 cash flow = 53,000 Year 5 cash flow = 65,000
es Consider the following cash flows: Year Cash Flow 0 -$ 29,900 1 13,800 2 3 15,100 11,500 a. What is the profitability index for the cash flows if the relevant discount rate is 8 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 13 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 20 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 T
What is the future value in year 5 of the following cash flows given a discount rate of 10%? Year 2 4 5 Cash Flow $844 $653 $987 (Do not include the dollar sign ($). 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).)
8. Calculating IRR What is the IRR of the following set of cash flows? LO 3 Year Cash Flow -$19,400 1 10,400 9,320 6,900
1. What is the total present value of the cash receipts X today (at time 0) if interest is 4.4% payable quarterly?2. What is the total accumulated value of the cash receipts X right after the last payment (at time 10) if interest is 4.4% payable quarterly?3. What is the total interest earned at the end of the term of this cash flow?4. How much is the cash receivable X by Rafa at the end of each quarter at the same interest charged if its net present value is 50,000?5. Ken receives Y at the end of each semiannual period over the same term at 2.5% interest payable semiannually for this cash flow. Calculate Y if its total worth today is 50,000.6. For the previous problem who earned more based on the net value of their cash receipts at the end of the term? Ken or Rafa?
Using this cash flow diagram, Identify the missing P at year 0.
2. Find what is required for the following cash flows. F =? 400 100 150 140 130 120 110 100 90 6 7 8 9 10 11 12 13 14 15 40 g=10% decrease each year (YR11-15) i = 15% per year 500
Consider the cash flows in the table bolow: \table[[ Year, 0, 1, 2, 3, 4, 5], [Cash Flow, - $ 100, $50, $60, $70, $80, $140 11. Consider the cash flows in the table below: Year 0 Cash Flow -$100 1 $50 2 $60 Which one of the following is correct for this cash flow (circle)? A. 100 50+ 10(A/G, 1, 5)+50(P/F, 1,5) B. (50(P/A, i, 5)+10(P/G, i, 5) +50(P/F, i, 5))/ (100)=1 C. 100(P/A, 1, 5)=50+10(A/G, I, 5) D. None of the equations are correct. 3 $70 4 $80 5 $140
Cash Flow Year -4 9,600 4,700 5,300 2,200 1 2 a. What is the profitability index for the cash flows if the relevant discount rate is 9 percent? Profitability index b. What is the profitability index for the cash flows if the relevant discount rate is 18 percent? Profitability index
Solve it correctly please. I
Find the present worth in year 0 for the cash flows shown. Let i = 10% per year. Please solve it with formula not table, Thank you

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

Given: Cash transactions as shown in cash flow diagram. %24 g = 4%/yr (positive transactions decreases from year to year) i = 10% per year 3 4 6. 12 13 14 15 Yrs g = 5%/yr (negative transactions become more negative)