Accounting question Joseph has just accepted a job as a stockbroker.He estimates his gross pay each year for the next3 years is $35,000 in year 1, $21,000 in year 2, and$32,000 in year 3. What is the present value ofthese cash flows if they are discounted at 4%?

Final Answer:The present value of the cash flows discounted at 4% is approximately $81,517.41.

Answered: Joseph has just accepted a job as a…

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter14: Multinational Capital Budgeting

Section: Chapter Questions

Problem 1IEE

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You will be receiving cash flows of: $2,000 today, $2,000 at the end of year 1, $3,000 at the end of year 3, and $6,000 at the end of year 5. What is the net present value of these cash flows at an interest rate of 4%?
Suppose that every 2 years beginning 3 years from now you will receive $151 in perpetuity. Assuming that the annual opportunity cost of capital is 7%, what is this stream of cash flows worth today? Round your final answer to two decimals.
What is the present value of the following cash flows if the discount rate is at 5%? You receive 100 today, 200 in each of next 3 years (Year 1,2,3) and 150 in each of the next following 2 years (Year 4,5)? Enter your answer in absolute number with 2 decimal places.
You will receive the following cash flows at the end of each year for the next 5 years. Year 1: $1,500; Year 2: $3,500; Year 3: $9,500; Year 4: $0; Year 5: $1,500. You can invest the money at an annual return rate of 8%. What is the present value of this stream of future cash flows? Group of answer choices $12,325.07 $12,951.86 $13,033.53 $13,988.00
Fill in the blank to answer the below. You invested $20,000 at the beginning of the year. At the end of the year, you received cash flows of $400 from the investment and you cashed out entirely, receiving $21,600. What is your return for the year? %
Walt is evaluating an investment that will provide the following cash flows at the end of each of the following years: year 1, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Walt believes that he should earn an annual rate of 9% on this investment. How much should he pay today for the investment?
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Mickey & Minnie have $41 million in cash. Before they retire, they want the $41 million to grow to $118 million. How many years before Mickey & Minnie can retire if they earn 5.2% per annum on their stash of cash? Assume annual compounding. (Enter your answer in years to 2 decimal places, e.g., 12.34)
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1. You expect to receive $1,000 in one year, $2,000 in three years, and $1,500 in five years. Assume that the appropriate discount rate is 13%. a. Display these cash flows in a spreadsheet using the layout of a time line. Enter all period numbers (up to year 5) in one row, and the expected cash flows in the next row. b. What is the present value of these expected cash flows? Your answer should consist of one spreadsheet file with all your work in one worksheet. it should answer in excel file
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Roger decides to start an investment account by depositing $5,000 today. In one year he will invest $500. He plans to make annual investments that increase by $100 each year ($600 in year two, $700 in year three, etc.). If he earns 9% on his investment, what will his account be worth 6 years from today, assuming he compounds annually

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Joseph has just accepted a job as a stockbroker. He estimates his gross pay each year for the next 3 years is $35,000 in year 1, $21,000 in year 2, and $32,000 in year 3. What is the present value of these cash flows if they are discounted at 4%?