Starting in year 3 you will receive 5 yearly payments on January 1 for P50,000. You want to know the present value of that cash flow if your alternative expected rate of return is 4.45% per year. You are getting 5 payments of P50,000 each per year at 4.45% and paid in advance since it is the beginning of each year. Starting in year 3 there are 2 years of payments of 0. You would enter using the net present value calculator:
Starting in year 3 you will receive 5 yearly payments on January 1 for P50,000. You want to know the present value of that cash flow if your alternative expected rate of return is 4.45% per year. You are getting 5 payments of P50,000 each per year at 4.45% and paid in advance since it is the beginning of each year. Starting in year 3 there are 2 years of payments of 0. You would enter using the net present value calculator:
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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use the net present value calculator in presenting the cash flow. complete the data.
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Use the net present value calculator in presenting the cash flow.
Starting in year 3 you will receive 5 yearly payments on
January 1 for P50,000. You want to know the present
value of that cash flow if your alternative expected rate
of return is 4.45% per year. You are getting 5 payments
of P50,000 each per year at 4.45% and paid in
advance since it is the beginning of each year.
Starting in year 3 there are 2 years of payments of 0.
You would enter using the net present value calculator:
Rate per Period: 4.45%
Compounding 1 time per year
Payments at Period : Beginning (in Advance)
Number of Lines: 2
Line 1 @ 2 periods with 0 cash flow
Line 2 @ 5 Periods with 50,000 cash flow
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