How much is the net present value of the Net Cash Flows, usingAssuming a 10% discount factor, how much is the net present valueVALUATION CONCEPTS AND METHODOLOGIES5.Pawikan Corp. reported the following information:YearNet Cash Flows1Php250Php300Php3503discount rate of 10%?а. Php300.12b. Php900.85c. Php738.17d. Php1,0006. Dracaris Inc. purchased an investment and expected to earn:YearNet Cash FlowsPhp250Php300Php450Php900123TVbased on the foregoing question, considering an additional investmentis Php1,000?a. Php489b. Php580c. Php1,000d. Php1,4897. Lumus Corp. incurred business meetings expenses for the yearamounting to Php65,200.00. The company assumes 5% inflation toall its expenses for the following year. The business meetingexpenses for the following year isa. Php65,200b. Php68,460c. Php70,000d. Php72,4008. Skywalker Inc. incurred office supplies expenses amounting to Php22,680 and Php21,000 for the years 20x2 and 20x1, respectively.Thereno change in the volume or quantity of the office suppliesexcept prices. The inflation of office supplies is141

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How much is the net present value of the Net Cash Flows, using VALUATION CONCEPTS 5. Pawikan Corp. reported the following information: Net Cash Flows Php250 Php300 Php350 Year 1 3 discount rate of 10%? а. Php300.12 b. Php900.85 c. Php738.17 d. Php1,000

How much is the net present value of the Net Cash Flows, using VALUATION CONCEPTS 5. Pawikan Corp. reported the following information: Net Cash Flows Php250 Php300 Php350 Year 1 3 discount rate of 10%? а. Php300.12 b. Php900.85 c. Php738.17 d. Php1,000

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

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Concept explainers

Production Budget

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

How much is the net present value of the Net Cash Flows, using
Assuming a 10% discount factor, how much is the net present value
VALUATION CONCEPTS AND METHODOLOGIES
5.
Pawikan Corp. reported the following information:
Year
Net Cash Flows
1
Php250
Php300
Php350
3
discount rate of 10%?
а. Php300.12
b. Php900.85
c. Php738.17
d. Php1,000
6. Dracaris Inc. purchased an investment and expected to earn:
Year
Net Cash Flows
Php250
Php300
Php450
Php900
1
2
3
TV
based on the foregoing question, considering an additional investment
is Php1,000?
a. Php489
b. Php580
c. Php1,000
d. Php1,489
7. Lumus Corp. incurred business meetings expenses for the year
amounting to Php65,200.00. The company assumes 5% inflation to
all its expenses for the following year. The business meeting
expenses for the following year is
a. Php65,200
b. Php68,460
c. Php70,000
d. Php72,400
8. Skywalker Inc. incurred office supplies expenses amounting to Php
22,680 and Php21,000 for the years 20x2 and 20x1, respectively.
There
no change in the volume or quantity of the office supplies
except prices. The inflation of office supplies is
141

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Q6.1
Can you please confirm my calculations: discount rate is 6%; end of year cash flows are as follows: Year 0: -20,000; year 1 through 5 are each 5,000; is the net present value of all cash flows 1061.82? and how do you calculate "at what discount rate is the net present value "0"?
Consider the cash flows in actual dollars given in the table below. Use the adjusted-discount method to compute the equivalent present worth of these cash flows. ( = 5% and i = 10%) %3D NNet Cash Flow in Actual Dollars 이 -$75,000 1 32,000 2 35,700 13 32,800 14 29,000 58,000
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What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals.Year 0 cash flow = -116,000Year 1 cash flow = 28,000Year 2 cash flow = 43,000Year 3 cash flow = 38,000Year 4 cash flow = 41,000Year 5 cash flow = 40,000Year 6 cash flow = 37,000
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