Marcia observed the following cash flow series (in $1000 units) in an accounting report at work. The actual amounts in years 1 am are missing; however, the report states that the present worth in year 0 was $378,000 at an interest rate of 9% per year. Calculat walue of x. Year Cash flow, $×1000 O 40 1 X 2 40 The value of x is determined to be $ 28000. 3 40 4 X 5 40 6 40

Marcia observed the following cash flow series (in $1000 units) in an accounting report at work. The actual amounts in years 1 am are missing; however, the report states that the present worth in year 0 was $378,000 at an interest rate of 9% per year. Calculat walue of x. Year Cash flow, $×1000 O 40 1 X 2 40 The value of x is determined to be $ 28000. 3 40 4 X 5 40 6 40

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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Similar questions

Marcia observed the following cash flow series (in $1000 units) in an accounting report at work. The actual amounts in years 1 and 4 are missing; however, the report states that the present worth in year 0 was $300,000 at an interest rate of 10% per year. Calculate the value of x. Year 0 1 2 3 4 5 6 Cash Flow, $1000 40 x 40 40 x 40 40
1. Consider the following cash flow payments: An income of $2000 at the end of year 2, an income of $5000 at the end of year 4, an expense of $3000 at the end of year 8, and a final income of $4000 at the end of year 10. (a) Draw the cash flow diagram for the cash flow payments. (b) Write an expression: what is the present equivalent value of these payments over the 10-year period assuming an interest rate of 10% per year. Just write down the expression like "e.g. P = 1,000 (P/F, 4%, 10) + 2,500 (P/A, 4%, 5)-4,000". You don't need to calculate the final numerical answer. (Hint: you can write out the present equivalent value for each cash flow, and then sum them up.)
Assume that you are looking at 3 perpetuities. P1 has annual cash flows of $850 in Yeata 1 through infinity (1-infinity) and present value at Year 0 of $10,119.047619. P2 has annual cash flows of $620 in Yeara 11 through infinity (11-infinity) and same effective rate as P1. P3 has annual cash flows of $480 in Years 25 through infinity (25-infinity) and same effective rate as P1 and P2. Determine the value of all three perpetuities when evaluated at Year 35.
The net cash flow diagram of a tradesman's account based on his work is given above. a) According to this cash flow diagram (when n=12 years), calculate the current (at time 0), year 7 and year 12 values of the total money, taking into account the specified interest rate. b) When n=60 years indicated in the figure, n. what will be the value in the year (flow values and trend remain the same)? Note: Show your calculations step by step.
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"?
For each of the following annuities, calculate the annual cash flow. (Enter rounded anware adirected, but do not use rounded numbers in intermediate calculations. 2 nswers to 2 decimal places (e.g., 32.16).): Years Cash Flow Present Value Interest Rate $ 36,800 27,500 145,000 215,000 11% 6 8 8 15 6 20
For each of the following annuities, calculate the annual cash flow. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Cash Flow Present Value Years Interest Rate $ 33,100 6 10 % 30,700 8 8 $ 170,000 17 13 $ 243,300 24 12 %24
The annual worth for years 1 through 8 of the cash flows shown is $30,000. What is the amount of the cash flow labeled x in year 3, if i = 10% per year? Solve using (a) tabulated factors, and (b) a spreadsheet.
Compute the future worth of the following cash flows at (a) i = 3% per year, (b) i = 12% per year, if PW= $ 1581.48, compounded annually. Explain the results.
The present value of the following cash flow stream is $8,400 when discounted at 9 percent annually. What is the value of the missing cash flow? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Please use formulas and give explanation) Year Cash Flow 1 $2,000 2 3 2,600 4 3,200
Solve it correct.
Compute the future value of a $175 cash flow for the following combinations of rates and times. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. r = 7%; t = 10 years b. r = 7%; t = 20 years c. r = 3%; t = 10 years d. r = 3%; t = 20 years

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