uantitative Problem: You own a security with the cash flows shown below. 0 1 2 3 4 0 630 375 270 If you require an annual return of 10%, what is the present value of this cash flow stream? Do not round intermediate calc answer to the nearest cent. $ 300

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter19: Lease Financing
Section: Chapter Questions
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internal rate of return (IRR) ▼
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Quantitative Problem: You own a security with the cash flows shown below.
0
1
$
Hide Feedback
Incorrect
0
630
375
270
If you require an annual return of 10%, what is the present value of this cash flow stream? Do not round intermediate calculations. Round your
answer to the nearest cent.
h
f6
Q Search
6
Y
H
N
2
Check My Work Feedback
Review the general PV equation for valuing an asset with an uneven cash flow stream.
f7
If using a financial calculator, be careful to enter zero for CFo. Otherwise, your present value calculation will be overstated.
&
87
using the IRR
U
f8
*
B
DHOMO
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8
T
K
fg
4
<
300
hp
144
key.
9
f10
99+1
O
V
f11
0
a CS 9x W
f12
?
+
L
ins
prt sc
]
delete
backspace
1
pause
home
num
lock
enter
Transcribed Image Text:internal rate of return (IRR) ▼ Hide Feedback Correct Quantitative Problem: You own a security with the cash flows shown below. 0 1 $ Hide Feedback Incorrect 0 630 375 270 If you require an annual return of 10%, what is the present value of this cash flow stream? Do not round intermediate calculations. Round your answer to the nearest cent. h f6 Q Search 6 Y H N 2 Check My Work Feedback Review the general PV equation for valuing an asset with an uneven cash flow stream. f7 If using a financial calculator, be careful to enter zero for CFo. Otherwise, your present value calculation will be overstated. & 87 using the IRR U f8 * B DHOMO + 8 T K fg 4 < 300 hp 144 key. 9 f10 99+1 O V f11 0 a CS 9x W f12 ? + L ins prt sc ] delete backspace 1 pause home num lock enter
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