UNIT 7-13 (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 AlternativesEnd of YearABC123456789$11,000$11,00011,00011,00011,00011,000$11,00011,00055,00011,00011,00011.000a. What is the present value of investment A at an annual discount rate of 17 percent?(Round to the nearest cent.)b. What is the present value of investment B at an annual discount rate of 17 percent?(Round to the nearest cent.)c. What is the present value of investment C at an annual discount rate of 17 percent?(Round to the nearest cent.)

Present value (PV) is the current value of a future sum of money or stream of cash flows. It is…

Answered: (Related to Checkpoint 6.6) (Present…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 3SEQ: The expected period of time that will elapse between the date of a capital investment and...

See similar textbooks

Similar questions

(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…
(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 4677AWN 3 5 8 A $10,000 10,000 10,000 10,000 10,000 B $10,000 10,000 10,000 10,000 C $10,000 50,000 a. What is the present value of investment A at an annual discount rate of 21 percent? (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 21 percent? (Round to the nearest cent.) C. What is the present value of investment C at an annual discount rate of 21 percent? (Round to the nearest cent.)
elated 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 7 8 9 A $12,000 12,000 12,000 12,000 12,000 $12,000 12,000 12,000 12,000 12.000 C $ 12,000 60,000 a. What is the present value of investment A at an annual discount rate of 22 percent? $36271.36 (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 22 percent? (Round to the nearest cent.) c. What is the present value of investment C at an annual discount rate of 22 percent? (Round to the nearest cent.)
(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: End of Year 1 2 3 4 5 6 7 8 9 10 A $10,000 10,000 10,000 10,000 10,000 Investment Alternatives B $10,000 10,000 10,000 10,000 C $10,000 50,000 10,000 10,000 (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. 10.000
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:
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 $ 11,000 $ 16,000 2 11,000 3 11,000 4 11,000 5 11,000 $ 11,000 6 11,000 48,000 7 11,000 8 11,000 9 11,000 10 11,000 16,000 (Click on the icon in order to copy its contents into a spreadsheet.) Assuming an annual discount rate of 15 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 15 percent? $ enter your response here (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: End of Year 1 NO456TO 2 3 7 8 S A $13,000 13,000 13,000 13,000 13,000 Investment B S $13,000 13,000 13,000 13,000 (Round to the nearest cent.) C a. What is the present value of investment A at an annual discount rate of 25 percent? $37227.32 (Round to the nearest cent.) $18.000 b. What is the present value of investment B at an annual discount rate of 25 percent? 54.000 c. What is the present value of investment C at an annual discount rate of 25 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: End of Year 1 2 567356 4 8 A $13,000 13,000 13,000 13,000 13.000 Investment B $13,000 13,000 13,000 13,000 C $18,000 54,000 a. What is the present value of investment A at an annual discount rate of 22 percent? $ 37227.32 (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 22 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.)
Consider an investment where the cash flows are: – $946.21 at time t = 0 (negative since this is your initial investment) $377 at time t = 1 in years $204 at time t = 2 in years $499 at time t = 3 in years (a) Use Excel's "Solver" to find the internal rate of return (IRR) of this investment. Take a screen shot showing Solver open with your entries for the function clearly visible. Paste the screen shot into an application (like Paint), and save it as a (.png) file. Upload your screenshot below. (b) What is the value of IRR found by Solver?
Calculate the HPR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Period Cashflow 0 -14100 1 3300 2 3300 3 3100 4 2800
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?

SEE MORE QUESTIONS

Recommended textbooks for you

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS