Little Love estimates 2021 net cash flow of P3,800,000 and projects 2030 net cash flow of P8,000,000. Using discount rate of 10%, calculate the terminal value (round the growth rate to four decimal point).

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: Find the present worth of all the cash disbursements using gradient interest formulas if money is…

A: First payment=P5000Gradient=P1000Number of payments=4Interest rate=15%

Q: Mike Derr Company expects to earn 12% per year on an Investment that will pay $616,000 six years…

A: Answer :Present value=?=?[1/(1+ rate) ^time]Future value = $616,000Rate = 8%Time = 7  yearsPresent…

Q: The company is going to invest P26,000, P34,000, P46,000, and P54,000 respectively into a savings…

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

Q: The cost is $2,000 in year 1 and amounts increasing by 7% per year through year 10. Use an interest…

A: PRESENT VALUE FORMULA: PRESENT WORTH=∑NFUTURE VALUE1+RN R=RATE OF INTEREST N=NUMBER OF YEARS

Q: 2. What is the future worth of P600 deposited at the end of every quarter for 4 years if the…

A: The value of an asset at a specific date is referred to as its future value. It is the present value…

Q: Can you estimate the annual rate of return to grow $5,000 to $20 million in 51 years?  Show cash…

A: The following information is provided.FV = 20,000,000PV = 5000n = 51 years Annual rate of return can…

Q: The firm forecasts a free cash flow of ₱ 41 million in Year 3, i.e., at t = 3, and it expects FCF to…

A: The horizon value is the present value of all perpetual cash flows. For free cash flow, use WACC as…

Q: Nominal annual interest rates are 7.3%. If a businessperson has an opportunity to invest $40,000…

A: Option 1: If 40,000 invested at 7.3% for 5 years: Future Value = Present Value * ( 1 + Interest…

Q: What will be the future value of the following cash flows by the end of the fifth year, if the…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: The future worth in year 8 for the cash flow series shown is $20,000. At an interest rate of 10% per…

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

Q: Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of…

A: Future Value of annuity due is the annuity in which payment is made at the beginning of the period…

Q: A project starts with an initial capital outflow of RM450,000 in exchange for the following likely…

A: Net Present Value (NPV) is the difference between present value cash inflow and present value cash…

Q: Calculate the future equivalent at the end of 2012, at 25% per year, of the following series of cash…

A: Interest rate (r) = 25% Cashflow in year 2008 (CF1) = $1000 CF2 = $1000 - $100 = $900 CF3 = $1000 -…

Q: Construct a cash flow diagram that represents the amount of money that will be accumulated in 1 year…

A: Initial Investment is 6% The time period is 1 year The interest rate is 6% per year compounded…

Q: Dosky expects to receive GHȼ300, GHȼ500, GHȼ1000 and GHȼ1500 in year1,2,3 and 4 respectively. What…

A: Cash flow Year 1 = 300 Cash flow Year 2 = 500 Cash flow Year 3 = 1000 Cash flow Year 4 = 1500…

Q: A company is considering an investment with the Bollars. The general inflation rate (7) during this…

A: The cash flows are in constant dollars. Constant dollars means that the dollar (or the cash flow)…

Q: Holly plc expects to receive annual cash flows of £75,000 per year in current price terms for a…

A: Since the discount rate is given in nominal terms and the cash flows are given in real terms, we can…

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is…

A: Present worth is the sum total of present values of all future cash flows. It is calculated as…

Q: The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is…

A: The future value of a cash flow series depends on the interest rate and time period for which it has…

Q: QUESTION . Al-Salam is expecting the following cash flows starting at the end of the year BD…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Use an external investing rate of 12% and an external borrowing rate of 6%. Compute the rate of…

A: The given problem can be solved using MIRR function in excel. MIRR function computes rate of return…

Q: A firm expects to make payments of 1.1, 1.5, 1.2, 1.4 and 1.9 million for a particular supply over…

A: Solution:- Present value means the value in today’s terms after discounting the future cash flows to…

Q: You have invested $10,000 in this ETF at the beginning of year 2020 and its year-end value was…

A: Rate of return refers to the return earned on an investment or asset over a fixed period of time.…

Q: Using the forecast template approach, forecast the 2021 Free Cash Flow (FCF) for Australian Vintage…

A: Free Cash Flow: Following the payment of operational costs and capital expenditures, free cash flow…

Q: A financial investment equal to BRL 100,000.00 allows a withdrawal of BRL 20,000.00 in the first…

A: Investment  BRL  1,00,000.00 Withdrawal  BRL     20,000.00 Annual growth 2% Time Period 10…

Q: se the information provided below to calculate the following: 2.2.1 Internal Rate of Return…

A: IRR is the internal rate of return and at this present value of cash flow is equal to initial…

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: Consider the cash flow shown in the accompanying diagram. If the value of C is $937, calculate the…

A: The PV of an investment refers to the collective value of the cash flows of the investment assuming…

Q: A company expects to receive the following cash flows $2,000 for the first ten years and then $3,000…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: XYZ plans to open a new store with the following forecasted free cash flows. If the interest rate is…

A: NPV basically stands for net present value . It is the present value of all the future cash flow…

Q: The table below gives the expected cash inflows of a firm for a period of 9 years. Time 3 6 9 Cash…

A: The objective of the question is to calculate the future value of the cash inflows and the Modified…

Q: 2. Mathias Company estimated that it has a 20% probability of receiving $240,000 one year from now,…

A: Present value of cash inflow means where cash inflow will be discount as per given percentage so as…

Q: Question 7: A series of cash flows begins at $20,000 the first year, with an increase each year…

A: Present Value: It is the current worth of a series of cash flows  at specified rate of return.…

Q: e Derr Company expects to earn 8% per year on an investment that will pay $616,000 seven years from…

A: Answer : Present value= Future value * [1/(1+ rate) ^time] Future value = $616,000 Rate = 8% Time =…

Q: The HUT is evaluating a 5 year investment projected to yield the following relevant cash flows over…

A: Solution:- Net Present Value (NPV) means the net present value of cash inflows net of initial…

Q: Draw the cash flow

A: We are given the following: Cash outflow at time 0 = $16,784.14Cash inflow at time 2 = 10,000Cash…

Q: Assume that $2000 is deposited today, $2000 two years from now, and $2000 four years from now. At a…

A: Future value can be calculated by using future value tables or by formula:

Q: How much must be deposited today into an account earning 3% interest annually to support annual…

A: Interest Rate = 3% Annual Withdrawal = $1,550