In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand cash-flow diagram? Let i = 12%. In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that isequivalent to the right-hand cash-flow diagram? Let i = 12%.1003 45

Cash flow is defined as the net amount of cash and cash equivalents carried into and out of a…

Answered: In the accompanying diagram, what is…

In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand cash-flow diagram? Let i = 12%.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.12: Uneven, Or Irregular, Cash Flows

Problem 1ST

See similar textbooks

Related questions

Q: . Calculate the IRR for each of the three cash-flow diagrams that follow. U

A: IRR: It is the rate that makes the project's net present value equal to zero. Therefore, the value…

Q: It costs P500,000 at the end of each year to maintain a section of Kennon Road in Baguio City. If…

A: The question is based on the concept of the present value of money. The present value is calculated…

Q: (Expected Cash Flows) For each of the following, determine the expected cash flows.

A: Cash inflows: The amount of cash received by a company from the operating, investing, and financing…

Q: Determine the sum of the cash flows in the incremental difference column (i.e., Y-X) for systems X…

A: INCREMENTAL CASH FLOW Incremental cash flow is the extra cash flow that is generated for accepting a…

Q: The down payment or equity needed for this investment is $60,000 (outflow) Cash Flow $15,000 5,000…

A: Investment $ 60,000.00 Saving Rate 1.50% Loan Rate 8%

Q: The PW-criterion accounts for the time value of money by converting the cash flows to the period…

A: Present worth (PW) is the current value of the future cash flow, for the specific time at specific…

Q: $500 $500 $500 $500 Year 2 3 i =12% compunded annually B P=?

A: Let CFn be the cashflow in year n. CF1 = B = - $1200 CF2 = $500 CF3 = $500 CF4 = $500 CF5 = $500 i =…

Q: What is the IRR of the following set of cash flows? (Round your answer to percent with two decimals,…

A: Given:

Q: 15. M purchased a small lot in a subdivision, paying P200.000 wn and promising to pay P15.000 every…

Q: d. Compute its (1) operating cash flow to current liabilities ratio, (2) operating cash flow to…

Q: In a cash flow series regarding the gradient: Select one: O a. Uniform gradient signifies that an…

A: When cash flows of a series changes with a constant amount, it is knows as gradient series.

Q: A bond with a face value of P1,500,000 is sold at P1,400,000. If the bond matures in 5 years and…

A: Step 1 Bond valuation: It is the cycle to determine the fair value of a bond or present value of a…

Q: Compute F so the following cash flows have a future worth of 0.

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: There are four variables in the process of adjusting single cash flow amounts for the time value of…

A: Formulas: Future value = Present value*(1+rate)^years Future value = FV Present value = PV Rate = i…

Q: For the alternatives shown, determine the sum of the cash flows in the Z-X difference column.

A: Given information: First cost of System X is -$40,000 and for Z is -$95,000 Annual operating cost of…

Q: Based on the interest rates and cash flows shown in the cash flow diagram, determine the value of…

A: Given information: Initial outflow : $50,000 Interest rates for 9 years Cash inflows : x Cash…

Q: Find the F, P, and A values for the negative cash flows shown in the diagram.

A: The question is based on the concept of future value , present value and annual value of given…

Q: In a cash flow series regarding the gradient: Select one: a. Uniform gradient signifies that an…

A: A series of cash flows may increase or decrease by an amount each period. Such a series of cash…

Q: What is the present value of a perpetuity of P150,000 payable quarterly if money is 4%…

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: Consider the following cash flows and calculate IRR.

A: Capital budgeting techniques are the methods that are used to evaluate various alternatives of…

Q: Tower City aims to construct a new bypass between two main rout travel time. The route will cost $15…

A: ERR is calculated as shown below.

Q: ieff= ? PoTotal = ? A/POTotal = ?

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…

Q: A man has purchased a new automobile. He wishes to set aside enough money in a bank account to pay…

A: When a number of equal payments are made at equal intervals, it is called annuity. If the payments…

Q: A man formerly employed as a chief mechanic of an automobile repair shop has saved P1,000,000 which…

A: Given,N = 5 years I = 20%Rental P30,000.00 a monthMiscellaneous P25,000.00 a monthSales tax 3% of…

Q: Based on the interest rates and cash flows shown in the cash flow diagram, determine the value of…

A: Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a…

Q: A = $2,000 %3D Er rf Year 2 17 18 19 20 21 i = 12% per Year Po = ? Py= F17 %3D

A: End of year annuity payments Interest rate = 12% Annuity Amount at end of year 18-21 = 2000

Q: Direction: Define, draw the cash flow diagram, and write the general formula of the following:…

A: Since you have posted a multiple question therefore we will be solving only the first question for…

Q: Consider the calculation of an external rate of return (ERR). The positive cash flows in the cash…

A: External rate of return is the return rate which is expected to be generated from the project. If…

Q: cash flow

Q: A mechanical contractor is trying to calculate the present worth of personnel salaries over the next…

A: given that: interest rate= 12%= 0.12 n (no. of period)= 5 years 1st year salaries=$150000 (S) since…

Q: Investment Perlod 1 3 4 A $(1,000) $100 $100 $100 $100 $1,100 B (1,000) 264 264 264 264 264 C…

A: IRR is an estimation of required rate of return that is compounded on a project or investment to…

Q: YEAR CASH FLOW 50.000 -$ 20,000 $100,000 S400.000 sa00,000 A. Assume annual cash flows are expected…

A: Here, Expected Rate of Return is 30% Expected Rate of Return drop to 18% after year 6 Growth rate…

Q: A cash flow table is basically a two-column table, in which the first column lists the time periods…

A: Cash flows table is the inflows and outflows for a project at different time periods.

Question

In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand cash-flow diagram? Let i = 12%.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

X FIND (X) FOR THE SHOWN CASH-FLOW DIAGRAMS. USE: i.9%. SHOW CALCULATIONS. 360 (each)
FIND (x)FOR THE SHOWN CASH-FLOW DIAGRAMS USE:i=9% 20000 ifr 3 12000 X 8000
Consider the calculation of an external rate of return (ERR). The positive cash flows in the cash flow profile are moved forward to t = n using what value of i in the (F|P,i,n–t) factors? a. 0 b. The unknown value of ERR (i′) c. MARR d. IRR.
The following set of cash flows has two internal rates of return. Calculate the 2nd IRR for the cash flows. (Enter percentages as decimals and round to 4 decimals). Hint: you will need to use a guess in the Excel function. Time 0 1 2 3 4 CF 8125 -17000 8000 -7500 9000
What is the internal rate of return of the following cash flow diagram? a. 20.0% b. 18.2% c. 17.5% d. 15.0%.
Which of the following cash flow streams could be evaluated using the basic Internal Rate of Return (IRR) method? A. CF1 $100 CF2 = -$20 CF3 - $20 B. CF1 =-$100 CF2 $20 CF3 $20 c. CF1 -$100 CF2 = $20 CFJ -$20 D. CF1 $100 CF2 = $20 CFJ $20 All of the above E.
not use of the excel
= 6) Find the internal rates of return on a cash flow with deposit amounts of A = A₁ = 240, B₁ 120, A₂ = 20, B₂ = 290, and withdrawal amounts of Bo at times t = 0, t = 1, t = 2, respectively. = 40, 10,
Consider the following cash flow diagram. What is the value of X if the internal rate of return is 15%? Solve, a. $246 b. $255 c. $281 d. $290.
Refer to the cash flow diagram. What is the future worth, F of the gradient cash flows? 900 400 300 A 200 + .... 0I 2 3 VF A. 200(F/A, i, 8) + 100(F/G, i, 7) B. 200(F/A, i, 8) + 100(F/G, i, 8) O C. 200(F/P, i, 7) + 100(F/G, i, 7)
The down payment or equity needed for this investment is $60,000 (outflow) Cash Flow $15,000 N 1 2 3 4 5,000 -4,000 8,000 Sale 4 $65,000 Savings Rate is: 1.5% and Loan Rate is 8%
a. Calculate the IRR for each of the three cash-flow diagrams that follow. Use EOY zero for (i) and EOY four for (ii) and (ii) as the reference points in time. What can you conclude about "reference year shift" and "proportionality" issues of the IRR method?