The CFO of the company believes that an appropriate annual interest rate on this investment is 6%. What is the present value of this uneven cash flow stream (rounded to the nearest whole dollar)? O $17,476,298 $13,900,000 O $12,047,954 $18,705,488
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- A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next six years: Year 1 $400,000 Year 2 $20,000 Annual Cash Flows Year 3 Year 4 $180,000 $300,000 O $600,000 O $1,975,000 O $1,395,097 O $1,775,000 Year 5 $350,000 Year 6 $725,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments: Description Debbie has been donating 10% of her salary at the end of every year to charity for the last three years. Her salary increased by 15% every year in the last three…A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Annual Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 $250,000 $37,500 $480,000 $300,000 $550,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 4%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? $1,650,000 $767,500 $1,410,275 $2,167,500 Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments: Description Uneven Cash Flows Annuity Payments Debbie has been donating 10% of her salary at the end of every year…7. Uneven cash flows A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Annual Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 $250,000 $20,000 $180,000 $450,000 $550,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 4%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? $450,000 $2,000,000 $1,800,000 $1,255,617 Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments: Description Uneven Cash Flows Annuity Payments You recently moved to a new apartment and…
- A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next four years: Annual Cash Flows Year 1 Year 2 Year 3 Year 4 $250,000 $37,500 $180,000 $300,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 6.5%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? $650,014 $1,475,000 $467,500 $1,692,500 Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments: Description Uneven Cash Flows Annuity Payments You recently moved to a new apartment and signed a contract to pay monthly rent to your…11. Uneven cash flows A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next six years: Year 1 $400,000 Year 2 $37,500 O $1,979,094 O $917,500 Annual Cash Flows Year 3 $480,000 Year 4 $450,000 O $2,292,500 O $1,775,000 Year 5 The CFO of the company believes that an appropriate annual interest rate on this investment is 4%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? $550,000 Year 6 $375,000Don't provide handwritten solution.
- Consider the following cash flow profile: Suppose the positive-valued cash flows are now replaced by a geometric series. If the cash flow at end of year 1 is $10,000, what geometric rate is required for the cash flow profiles to be equivalent? Interest is at a compounded annual rate of 6%.D4)Consider a loan of $10,000 and the following pattern of cash flows. a. What is the interest rate that makes the present worth equal to $0.00? b. Using the interest rate determined in part (a), and leaving the −$10,000 at year 0 in place, determine the equal annual incomes that are equivalent to the gradient series in years 1, 2, 3, and 4?
- Draw the cashflow diagram and solve using the formulaFind the value of the unknown quantity Z in the following diagram, such that the equivalent cash outflow equals the equivalent cash inflows when i= 18% per year, compounded semiannually. YcarsFor the cash flows shown, determine the equivalent future worth in year 10 at an interest rate of 2.5% per month. Year 2 3 5 7 8 10 Cash Inflows, 250 250 250 250 250 250 250 250 250 (a) The compounding period is: (a) The payment period is: (c) The effective interest rate per compounding period is: (d) The effective interest rate per payment period is: (e) The general equation (without numbers) for calculating the equivalent future worth is: (f) After plugging in the numbers, the equation for calculating the equivalent future worth is (calculation is NOT required): 6, 6. 4)