question 12 What is the present value of investment A, B, and C at an annual discount rate of 12 percent? (Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:End of YearA$ 2,0003,000CInvestmentB1$1,000$ 4,00021,0004,00031,000(4,000)45(5,000)5,0001,000(4,000)4,00014,000(Click on the iconin order to copy its contents into a spreadsheet.)4,000What is the present value of each of these three investments if the appropriate discount rate is 12 percent?

Answered: Image /qna-images/answer/0adfd2fa-af57-4699-a067-313b74a8e0a0.jpg

Answered: (Present value of an uneven stream of…

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

See similar textbooks

Similar questions

You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 3,000 $ 1,000 $ 5,000 2 4,000 1,000 5,000 3 5,000 1,000 (5,000) 4 (6,000) 1,000 (5,000) 5 6,000 5,000 15,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the present value of each of these three investments if the appropriate discount rate is 14 percent? Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 14 percent? $ enter your response here (Round to the nearest cent.)
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as fo Investment End of Year C $ 2,000 $1,000 $4,000 2. 3,000 1,000 4,000 4,000 1,000 (4,000) (4,000) 14,000 4 (5,000) 1,000 5,000 (Click on the icon in order to copy its contents into a spreadsheet.) 4,000 What is the present value of each of these three investments if the appropriate discount rate is 14 percent? a. What is the present value of investment A at an annual discount rate of 14 percent? %24 (Round to the nearest cent.) %24
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A C $ 2,000 $1,000 $ 5,000 5,000 2 3,000 1,000 4,000 (5,000) 5,000 1,000 1,000 (5,000) (5,000) 15,000 3,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the present value of each of these three investments if the appropriate discount rate is 12 percent? a. What is the present value of investment A at an annual discount rate of 12 percent? $ 6,683.95 (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 12 percent? $ 4,739.63 (Round to the nearest cent.) c. What is the present value of investment C at an annual discount rate of 12 percent? (Round to the nearest cent.)
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of Year 1 2 3 A $ 2,000 3,000 4 5 Investment B $1,000 1,000 4,000 1,000 (5,000) 1,000 5,000 5,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the present value of each of these three investments if the appropriate discount rate is 11 percent? с $ 4,000 4,000 (4,000) (4,000) 14,000 a. What is the present value of investment A at an annual discount rate of 11 percent? (Round to the nearest cent.)
Please look at the attached image for a better understanding of the question. Question 1: Present Value of an Uneven Stream of Payments You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of Year A B C 1 $2,000 $2,000 $5,000 2 3,000 2,000 5,000 3 4,000 2,000 (5,000) 4 (5,000) 2,000 (5,000) 5 5,000 5,000 15,000 What is the present value of each of these three investments if the appropriate discount rate is 10 per cent?
Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:
ou are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 2,000 $ 2,000 $ 6,000 2 3,000 2,000 6,000 3 4,000 2,000 (6,000) 4 (5,000) 2,000 (6,000) 5 5,000 6,000 16,000 a. What is the present value of investment A at an annual discount rate of 13 percent? b. What is the present value of investment B at an annual discount rate of 13 percent? c. What is the present value of investment C at an annual discount rate of 13 percent?
For each of the investments below, calculate the rate of return earned over the period. Cash Flow During Period - $900 14,000 5,000 70 1,500 (Click on the icon here in order to copy the contents of the data table above into a spreadsheet.) Investment A B C D E Beginning-of-Period End-of-Period Value Value $1,400 140,000 55,000 500 14,000 $400 115,000 49,000 200 12,600
(Related to Checkpoint 6.6) (Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment Alternatives End of Year 1 2 3 4 5 6 $ 780 A $ 19,000 19,000 19,000 19,000 19,000 B $19,000 19,000 19,000 19,000 19.000 C $19,000 95,000 a. What is the present value of investment A at an annual discount rate of 23 percent? $ 53265.99 (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 23 percent? (Round to the nearest cent.) ..
Damien offers you a sequence of end-of-year cash flows for an investment as follows: Year 1 2 3 4 4 What is the value of the cash flows if the opportunity cost is 6 percent? (Round to the nearest dollar). Please click on the following link to access a blank worksheet Click to open:: O $8.392 $8.598 Cash Flow $4,000 $3,000 $2,000 $1,000 $8.734 $8.915
Save (Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year 1 A B C $ 2.000 $3,000 $ 4,000 2 3,000 3,000 4,000 3 4,000 3,000 (4,000) (5,000) 3,000 (4,000) 5 5,000 7,000 14,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the present value of each of these three investments if the appropriate discount rate is 9 percent? a. What is the present value of investment A at an annual discount rate of 9 percent? (Round to the nearest cent.)
(Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment Alternatives End of Year A B C 1 $ 18,000 $ 18,000 2 18,000 3 18,000 4 18,000 5 18,000 $ 18,000 6 18,000 90,000 7 18,000 8 18,000 9 18,000 10 18,000 18,000 (Click on the icon in order to copy its contents into a spreadsheet.) Assuming an annual discount rate of 23 percent, find the present value of each investment. Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 23 percent? $ enter your response here (Round to the…

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS