The appropriate discount rate for the following cash flows is an 8 percent APR compounded quarterly.Year Cash Flow123$9301,01001,600What is the present value of the cash flows?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.Present value

The PV of an investment refers to the combined worth of the cash flows of the investment assuming…

The appropriate discount rate for the following cash flows is an 8 percent APR compounded quarterly. Year Cash Flow 1 $ 930 2 1,010 0 1,600 3 What is the present value of the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present value

The appropriate discount rate for the following cash flows is an 8 percent APR compounded quarterly. Year Cash Flow 1 $ 930 2 1,010 0 1,600 3 What is the present value of the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present value

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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Similar questions

The appropriate discount rate for the following cash flows is 12 percent compounded quarterly. �What is the present value of the cash flows? �Year 1 CF=700, Year 2 CF=600, Year 3 CF=0, Year 4 CF=1000 Question 4 options: $1,635 $1,667 $1,736 $1,510 $1,719
For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years 12 4 16 21 Interest Rate 4 % 9 12 11 Future Value $ 18,128 42,317 798,382 655,816
Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Payment $ 5,600 10,600 4,600 Annual Rate Interest Compounded Semiannually 9.0% 10.0% Quarterly 11.0% Annually Period Invested 3 years 2 years 5 years Present Value of Annuity
What is the future value of the following cash flows, given an appropriate discount rate of 6.96% (to the nearest penny)? Year 1 Year 2 Year 3 Year 4 Year 5 $4708 $6056 $3724 $8267 $7761
Compute the present value of a $240 cash flow for the following combinations of discount rates and times: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. r=12%, t=8 years b. r=12%, t=16 years c. r = 6%, t= 8 years d. r=6%, t=16 years Present Value
For each of the following annuities, calculate the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Annuity Payment $ 2,000 $ 1,280 $ 11,580 30,150 69 $ Years 7 17 25 Interest Rate 9 % 8 10 12
Complete the following using compound future value. (Use the Table provided.) (Do not round intermediate calculations. Round your final answers to the nearest cent.) Time Principal Rate Compounded Amount Interest 7 years $4 16,600 8% Quarterly cer
What is the value in year 15 of a $260 cash flow made in year 4 if interest rates are 12 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Investment X offers to pay you $5,400 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years. If the discount rate is 6 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) If the discount rate is 21 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Complete the following using compound future value. (Use the Table provided.) Note: Do not round intermediate calculations. Round your final answers to the nearest cent. Time 5 years Principal $ 17,300 Rate Compounded 6 % Quarterly Amount Interest
For each of the following annuities, calculate the present value. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value Annuity Payment $ $ $ $ 1,950 1,265 11,455 29,900 Years 7 9 16 24 Interest Rate 8% 7 9 11
The appropriate discount rate for the following cash flows is 7 percent compounded quarterly. Year Cash Flow 1 $ 700 2 800 3 0 4 1,100 What is the present value of the cash flows? Multiple Choice $2,139.12 $ 815.18 $2,192.14 $2,182.78 $2,226.43

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