hat is the present value of a cash flow stream of 1,000 per year annually for 12 years that then grows at 4.6% per year forever

Q: what is the future value of cash flow of ¢2,000.00 for the first month and a monthly rise of 0.1%…

A: 1st deposit =2000 Increase per month = 0.1% = 0.001 Increase Factor(r) = 1+0.001 = 1.001 Number of…

Q: What is the value today of receiving a single payment of $72,887.00 in 29.0 years if your required…

A: The present value represents the current worth of a future value that will be received at a…

Q: ou are considering an investment opportunity that yields $520 one year from today, $900 in two…

A: PV = sum of (Cashflow/(1+r)^1 +.......Cashflow/(1+r)^n)

Q: Your project will give you a rate of return of 100% over 15 years. Is this a lot or a little? How…

A: Effective Rate is real rate at which investment value will appreciate over a given period. It shows…

Q: You have a cash of Rs. 100,000 today. What will be its value after 5 years if you make an investment…

A: Present Value = 100,000 Time Period (N) = 5 Interest Rate = 12%

Q: Beginning five years from now you will receive $135 in perpetuity every two years. Assuming the…

A: The problem is asking us to calculate the present value of a perpetuity cash flow that starts five…

Q: Annual maintenance for a machine are P 1,500.00 this year and are estimated to increase 10% each…

A: Working note for a, b and c as follows:

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: Suppose  you expect to receive the following future cash flows at the end of the years indicated.…

A: Future value- Year       FV 2          $2300 4          $5200 5          $2600 9          $8000…

Q: What is the present value of the streams of cash flow for the following: Php1,000,000 with a…

A: Solution:- When an equal amount is paid each period, it is known as ordinary annuity. We know,…

Q: Consider an investment project with the following repeating cash flow pattern every four years…

A: Annual equivalence of cash flows is used to convert the cash flows to periodic amounts. It is…

Q: A stream of annual cash flows will begin 10 years from now and end 20 years from now. The initial…

A: Present value is a financial concept that represents the value of a future sum of money in terms of…

Q: What is the value today of receiving a single payment of $81,374 in 4 years if your required rate of…

A: Present Value is the current price of future value which will be received in near future at some…

Q: annual payment from a cash flow is expected to grow 4% per year from year 1 to year 10, after which…

A: The present value of cash flow would be the equivalent value today that is equivalent to cash flow…

Q: An asset is projected to generate 14 annual cash flows of $6,000 starting 5 years from today. If the…

A: Present Value: It represents the current worth of the future expected cash flows. It is computed by…

Q: You expect to receive two cash flows: $34,000 paid in 5 years and $51,000 paid in 10 years. You'll…

A: Solution:- When some amount is invested somewhere, it earns interest on it. The amount initially…

Q: How much money will be in an account for 10 years from today if 20,000 is deposited today at a rate…

A: Following details are given in the question: Present value (Investment today) = $20000 Time period =…

Q: What is the present value of a perpetual stream of cash flows that pays $5, 000 at the end of year…

A: Cashflows = $5,000 Growth rate = 4%  Discount rate = 11%

Q: worth of a ten year geometric gradient series of cash flows was found to be $100,000. If the…

A: Future value of growing annuity can be found out from the growth rate and interest rate and period…

Q: What is the net present value of a project that has an initial cost of $40,000 and produces cash…

A: Initial Cost is $40,000 Cash Inflows of $8,500 for 10 years. Discount rate is 12.68%   To Find:- Net…

Q: Roughly how many years would urn $1,000 into $16,000 if you can invest the money at 9% per year,…

A: Time value of money:According to the "time value of money" hypothesis, a dollar received now is…

Q: You are presented with an investment opportunity that will give you the following stream of cash…

A: Cash flow (0 to 4 years ) = $0Cash flow (Until year 14  ) = $2,000Cash flow (Until year 20 ) =…

Q: Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: sh of Php 50,000 invested today will realized an annual cash returns for five (5) years at 8% rate…

A: The given problem can be solved using PMT function in excel. PMT function computes savings/…

Q: What is the present value of 24 monthly cashflows of $420 each starting today if the interest rate…

A: Using excel PV function, This is question of annuity due since cashflow starting today

Q: How much money should be deposited each year for 6 years starting 1 year from today, if you wish to…

A: Here, Withdrawal Amount is $5132 Time Period for Withdrawal (n) is 13 years Time Period to start the…

Q: ou will receive $100 one year from today and another $100 two years from today. The interest rate…

A: Present Value is a current price of the future value at specified rate of interest which amount will…

Q: If you invest $2,000 in an account with an annual yield of 12.0% compounded each month. What is the…

A: The question is based on the concept of calculation of future value . Formula as,  FV=PV*(1+rn)t*n

Q: saver wants $100000 after 10 years and believes it is possible to earn an annual rate of 8% on…

A: Amount required = FV = $100,000No of years = nper = 10 yearsInterest rate = rate = 8%Yearly…

Q: What is the present worth difference between an investment of $15,000 per year for 35 years and an…

A: Present worth is calculated by discounting the future cash flow by the discounting rate.   Present…

Q: What is the present value of a perpetual stream of cash flows that pays 20,000 at the end of year…

A: In the given case, we have provided the expected cash flows in Year 1, perpetual growth rate and the…

Q: If $25,000 is invested at 10% per year compounded monthly, in approximately how many years will the…

A:

Q: An investment requires 15,000 today and produces a yearly cash flow of 700 in perpetuity. Cash flow…

A: Here, Investment today is 15,000 Yearly Cash Flow is 700 in perpetuity Growth Rate is 3%

Q: At the end of each year for the next 18 years you will receive cash flow of $3700 the initial…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Draw the cash flow diagram with your solution About how many years will P100,000 earn a compound…

A: Present value (P) = P100,000 Interest amount (I) = P50,000 Interest rate = 9% Quarterly interest (r)…

Q: If P5,000 shall accumulate for 10 years at 4% compounded quarterly, find the compounded interest at…

A: To find the compounded interest at the end of 10 years we will use future value from excel and then…

Q: What uniform annual series of cash flows over a 12-year period is equivalent to an investment of…

A: PVA=PMT 1+rn-1/r (1+r)n   Present value annuityFVA=PMT1+rn-1/r    Future value…

Q: Suppose you save $2,800 ayear for 43 years into an investment account that earns 8.5% return, how…

A: Yearly savings = $2800Period = 43 yearsInterest rate = 8.5%

Q: How much is an asset with expected annual cashflows of $19,000 for 11 years worth today, if the…

A: Present value considers the time value of money concept. It considers the discounting factor at…