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PROVIDE - PRESENT VALUE, FUTURE VALUE, AND internal rate of return (IRR)

PROVIDE - PRESENT VALUE, FUTURE VALUE, AND internal rate of return (IRR)

Essentials Of Investments
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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PROVIDE - PRESENT VALUE, FUTURE VALUE, AND internal rate of return (IRR)

Exercise 1 - Determine PV & FV FOR EACH YEAR (1ST TO 6TH YR); IRR of FV and PV at 4th, 5th and 6th Year; and; NPV to 6th year (Note: Use 10% and 15% Discount Annual Rate of Time Value of Money Cash Flow A. 10 % rate Time (yr)Income Expenses FV IRR PV ($100,000.00) 0 -100000 -100000 FV 1 30000 -5000 2 30000 -5000 3 30000 -5000 4 30000 -5000 5 30000 -5000 6 30000 -5000 FV B. 15% rate Cash Flow Time (yr)Income Expenses 0 -100000 1 30000 -5000 2 30000 -5000 3 30000 -5000 30000 -5000 30000 -5000 30000 -5000 4 NPV 5 6 NPV PV ($100,000.00) -100000 FV IRR PV PV
Transcribed Image Text:Exercise 1 - Determine PV & FV FOR EACH YEAR (1ST TO 6TH YR); IRR of FV and PV at 4th, 5th and 6th Year; and; NPV to 6th year (Note: Use 10% and 15% Discount Annual Rate of Time Value of Money Cash Flow A. 10 % rate Time (yr)Income Expenses FV IRR PV ($100,000.00) 0 -100000 -100000 FV 1 30000 -5000 2 30000 -5000 3 30000 -5000 4 30000 -5000 5 30000 -5000 6 30000 -5000 FV B. 15% rate Cash Flow Time (yr)Income Expenses 0 -100000 1 30000 -5000 2 30000 -5000 3 30000 -5000 30000 -5000 30000 -5000 30000 -5000 4 NPV 5 6 NPV PV ($100,000.00) -100000 FV IRR PV PV
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