Reset Parameters 2 B 1 5 Assume cash flows start at time 4. 5 Allow your model to accommodate up to 25 periods. 7 Note that the number of periods, value period and starting period can change. Instructions: Build a model to calculate the year 3 value of receiving $150 for 15 years. Assume a discount rate of 8%. Cash Flow Discount Rate Periods Starting Period Value Period B Use your model to answer the following questions: э Your answer 0 11 What is the year 3 value of receiving $1 for 25 years? 1 12 What is the year 3 value of the annuity? 2 13 What is the sum of the unadjusted cash flows? 3 4 $150 8% 15 4 3 Correct Answer $13.45 $1,283.92 $2,250.00
Reset Parameters 2 B 1 5 Assume cash flows start at time 4. 5 Allow your model to accommodate up to 25 periods. 7 Note that the number of periods, value period and starting period can change. Instructions: Build a model to calculate the year 3 value of receiving $150 for 15 years. Assume a discount rate of 8%. Cash Flow Discount Rate Periods Starting Period Value Period B Use your model to answer the following questions: э Your answer 0 11 What is the year 3 value of receiving $1 for 25 years? 1 12 What is the year 3 value of the annuity? 2 13 What is the sum of the unadjusted cash flows? 3 4 $150 8% 15 4 3 Correct Answer $13.45 $1,283.92 $2,250.00
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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Transcribed Image Text:Reset Parameters
2
B
1
5
Assume cash flows start at time 4.
5
Allow your model to accommodate up to 25 periods.
7
Note that the number of periods, value period and starting period can change.
Instructions:
Build a model to calculate the year 3 value of receiving $150 for 15 years.
Assume a discount rate of 8%.
Cash Flow
Discount Rate
Periods
Starting Period
Value Period
B
Use your model to answer the following questions:
э
Your answer
0
11 What is the year 3 value of receiving $1 for 25 years?
1
12
What is the year 3 value of the annuity?
2
13 What is the sum of the unadjusted cash flows?
3
4
$150
8%
15
4
3
Correct Answer
$13.45
$1,283.92
$2,250.00
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