Windsor Enterprises is using a discounted cash flow model. Identify which model Windsor might use to estimate the discounted fairvalue under each scenario, and calculate the fair value using the present value tables:Scenario 1: Cash flows are fairly certain$260/year for 5 yearsRisk-adjusted discount rate is 6%Risk-free discount rate is 2%(For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25.)Click here to view the factor table PRESENT VALUE OF 1.Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.Scenario 1:Windsor might useFair valueScenario 2:Windsor might useFair value$tA$Scenario 2: Cash flows are uncertain75% probability that cash flows will be $260 in 5 years25% probability that cash flows will be $115 in 5 yearsRisk-adjusted discount rate is 6%Risk-free discount rate is 2%traditional approach1,225.50expected cash flow1,095.21model.model.

Vindsor Enterprises is using a discounted cash flow model. Identify which model Windsor might use to estimate the discounted fair alue under each scenario, and calculate the fair value using the present value tables: Scenario 1: Cash flows are fairly certain $260/year for 5 years Risk-adjusted discount rate is 6% Risk-free discount rate is 2% For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25 cenario 1: lick here to view the factor table PRESENT VALUE OF 1. lick here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Windsor might use Fair value cenario 2: Windsor might use Fair value $ Scenario 2: Cash flows are uncertain 75% probability that cash flows will be $260 in 5 years 25% probability that cash flows will be $115 in 5 years Risk-adjusted discount rate is 6% $ Risk-free discount rate is 2% traditional approach ✓ model. expected cash flow 1,225.50 ✓ model. 1,095.21

Vindsor Enterprises is using a discounted cash flow model. Identify which model Windsor might use to estimate the discounted fair alue under each scenario, and calculate the fair value using the present value tables: Scenario 1: Cash flows are fairly certain $260/year for 5 years Risk-adjusted discount rate is 6% Risk-free discount rate is 2% For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25 cenario 1: lick here to view the factor table PRESENT VALUE OF 1. lick here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Windsor might use Fair value cenario 2: Windsor might use Fair value $ Scenario 2: Cash flows are uncertain 75% probability that cash flows will be $260 in 5 years 25% probability that cash flows will be $115 in 5 years Risk-adjusted discount rate is 6% $ Risk-free discount rate is 2% traditional approach ✓ model. expected cash flow 1,225.50 ✓ model. 1,095.21

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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a. Find the present values of the following cash flow streams at a 9% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 Stream A Stream B Stream A: $ $0 $0 5 $100 $350 $350 $350 $300 $300 $350 $350 $350 $100 Stream B: $ b. What are the PVS of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $ Stream B: $
Solve this question properly by making a table, calculating all the required values in detail (without using MS-Excel)
1. Discounted Payback (DCPB) and IRR analysis. Use the cash flow situation (table below) to answer. a. Determine the DCPB based on a MARR rate of 8.0% b. Determine the IRR Year Cash Flow (in $1000's) 0 1 -5500 +1500 2 +1800 3 +1500 4 +1800 5 6 +1500 +1800 7 +1500
Just answer please without explanation please
a. Find the present values of the following cash flow streams at an 11% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A Stream B Stream A: $ $0 $0 Stream B: $ $100 $400 $400 $250 $400 $400 $400 $250 $400 $100 Stream B: $ b. What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $
USING EXCEL SHOW HOW TO SOLVE THE FOLLOWING:
What is the present value of the following stream of cash flows if the discount rate is 9%? Year 1-5: $14,000 inflow Years 6-20: $23,000 inflow (Use the present value tables in your course packet for any present value calculations. Round your final answer to the nearest dollar.)
Different cash flow. Given the cash inflow in the following table. what is the present value of this cash flow at 8%, 11%, and 23% discount rates? What is the present value of this cash flow at 8% discount rate? (Round to the nearest cent.) What is the present value of this cash flow at 11% discount rate? (Round to the nearest cent.) What is the present value of this cash flow at 23% discount rate? (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 1: Year 2: $1,500 $8,000 Years 3 through 7: $0 Year 8: $30,000 -X
Consider two assets with the following cash flow streams: Asset A generates $4 at t=1, $3 at t=2, and $10 at t=3. Asset B generates $2 at t=1, $X at t=2, and $10 at t=3. Suppose X=6 and the interest rate r is constant. For r=0.1, calculate the present value of the two assets. Determine the set of all interest rates {r} such that asset A is more valuable than asset Draw the present value of the assets as a function of the interest rate. Suppose r=0.2. Find the value X such that the present value of asset B is 12. Suppose the (one-period) interest rates are variable and given as follows: r01=0.1,r12=0.2, r23=0.3. Calculate the yield to maturity of asset A. (You can use Excel or ascientific calculator to find the solution numerically.)
Skysong, Inc. is using a discounted cash flow model. Scenario 1: Cash flows are fairly certain $180/year for 5 years Risk-adjusted discount rate is 6% Risk-free discount rate is 4% Identify which model Skysong might use to estimate the discounted fair value under each scenario, and calculate the fair value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25.) Click here to view the factor table PRESENT VALUE OF 1 Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Scenario 1. Skysong might use Fair Value Scenario 2: Skysong might use Fair Value $ Scenario 2: Cash flows are uncertain 75% probability that cash flows will be $180 in 5 years 25% probability that cash flows will be $95 in 5 years Risk-adjusted discount rate is 6% Risk-free discount rate is 4% $ traditional approach ✓ model. expected cash flow model.
Take me to the text The following table indicates the net cash flows of a capital asset: Year Net Cash Flow 0 $-13,900 1 $5,500 2 $9,600 Do not enter dollar signs or commas in the input boxes. Use the negative sign where appropriate. Round the factor to 4 decimal places and the NPV to the nearest whole number. Assume the required rate of return is 13%. Determine the net present value of this asset. Year Net Cash Flow 0 1 2 Total $-13,900 $5,500 $9,600 Factor Net Present Value SA $ A
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

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