what is the present value of all your profits over the next 5 years? SHOW A “ROUGH” CASH FLOW DIAGRAM SHOW YOUR WORK ON HOW YOU CAME TO THE ANSWER (i.e. Equation)  Answer _____________________ Work ---→

Q: You are offered a chance to buy an asset for $4,000 that is expected to produce cash flows of $750…

A: The internal rate of return (IRR) is a financial metric used to estimate the potential profitability…

Q: The cost is $2,000 in year 1 and amounts increasing by 7% per year through year 10. Use an interest…

A: PRESENT VALUE FORMULA: PRESENT WORTH=∑NFUTURE VALUE1+RN R=RATE OF INTEREST N=NUMBER OF YEARS

Q: What is the future worth of P1,000 if it is invested at 12% compounded annually for the first year,…

A: Because you have multiple questions , we will answer the first question only, for the remaining…

Q: Given the following cash flows, find the internal rate of return. Use an interest rate of 8% as a…

A: An internal rate of return or IRR is defined as the financial metric, which used in the financial…

Q: Determine the value of Won the right-hand side of the accompanying diagram that makes the two…

A: Present value is today's value of future cash flows. It is computed by discounting the cash flows by…

Q: There is a cash inflow of $500 today and a cash outflow of $500 two years from now. If the current…

A: To find the value of these cash flows at the end of year 1, we need to first discount or compound…

Q: 1 2 3 5 Year 6 Cash flow, ID 200 200 200 200 200 300 300

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What is the present value of the combined cash flows?

A: Present Value: It represents the present value of the future cash flow stream.  It is computed by…

Q: Different cash flow. Given the following cash inflow at the end of each year, , what is the future…

A: Every investor wants to make a profit. To decide which investment is good, investors should use the…

Q: Lourdes has just retired and plans to consume $11093 from the retirement account every year for the…

A: A retirement account is an account that is opened by someone to have the required balance in hand at…

Q: (a) Using tabulated factors for the cash flow series shown, calculate the future worth at the end of…

A: Future value refers to the future worth of current cash flow at a  certain rate of interest and…

Q: A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year…

A: The present value of cash flows of investment is computed so that investors can decide whether to…

Q: Savings year nbe sold to ealize cash flows of $6,100, Interest is 10%. Assume the cash flows c NA of…

A: TVM stands for time value of money is the accounting concept which states that the amount which is…

Q: The buyer of a certain machine may pay either 200,000 cash down payment and 200,000 annually for the…

A: Here,

Q: 4 (a) Evaluate the cash flow diagram given by the figure below. Determine a Net Present Value and a…

A: First, we will calculate the NPV using the rates provided and cash flows then we will calculate the…

Q: 1. You expect to receive $1,000 in one year, $2,000 in three years, and $1,500 in five years. Assume…

A: The principle behind the time value of money is that a certain amount of money today can be invested…

Q: Problem #1: For the following cash flows, (receipt of 10,000 at t=0; payment of 15,000 at t=1;…

A: Equivalent is a method used to compare the value of cash flows or investments at different points in…

Q: Determine the present worth of the given cash flow. Draw a cash flow diagram and explain your work…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: You expect to receive two cash flows: $41,000 paid in 5 years and $61,500 paid in 10 years. You'll…

A: Future value is an estimate of future cash values ​​that may be received at a future date,…

Q: Q)For the cash flow shown in the table, calculate the future worth in year 8 using i=10% per years.…

A: The formula for the future value is as shown below:

Q: Construct a cash flow diagram that represents the amount of money that will be accumulated in 1 year…

A: Initial Investment is 6% The time period is 1 year The interest rate is 6% per year compounded…

Q: Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8,…

A: Let CFn be the cashflow in year n. CF1 to CF5 = $2000 CF6 to CF8 = $3000 CF9 = $4000 r = 14%

Q: A. Which of the following investments is worth the most to a rational investor, and why? Assume the…

A: Year Cash flow ($) PVF @10% PV of Cash flow ($) 1 $100 0.9091 90.91 2 $500 0.8264 413.20 3…

Q: Suppose you are given the following cash flow stream. If the interest rate is 20 percent, what is…

A: The time value of money is an important concept in finance that recognizes the idea that a sum of…

Q: How much money should be deposited each year for 6 years starting 1 year from today, if you wish to…

A: Here, Withdrawal Amount is $5132 Time Period for Withdrawal (n) is 13 years Time Period to start the…

Q: What is the value of the following cash flows in year 6? What is the value today? Assume interest…

A: The present value of the annuity is the current value of the future payments that are calculated…

Q: An investment has the following expected cash flows: Year 2 3 Cash Flows $10,033 $20,003 30,000 The…

A: Variables in the question:              Year        Cash Flow ($)110033220003330000Discount…

Q: n                          Net cash Flow                             0…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: You have just received a windfall from an investment you made in a friend’s business. You will…

A: a) Present value = Future value / (1 + Rate)^Time Present value = $14,050/1.06 + $3,250/1.06^2 +…

Q: Using Excel to calculate 1. What is the present value of the following cash flow at a 12% discount…

A: NPV is also known as Net present value. It is a capital budgeting technique which helps in decision…

Q: The cash-flow diagram is provided a. If P=$1,000, A = $200, and % = 15% per year, then N= ? b. If…

A: Present value is the equivalent today of the future cash flow based on the time value of money and…

Q: (a) Calculate the present value of this cash flow stream. (7 p.) (b) Calculate the annual equivalent…

A: Present value of cash flow stream is the net present worth of future expected cash flows i.e. value…

Q: oth interest earnings and the fact that money put to good use should generate additional funds above…

A:

Q: What is the present value of a perpetual stream of cash flows that pays ​$   7,500 at the end of…

A: Year one cash flow = $7500 Growth rate = 0.02 Discount rate = 0.09 Discount rate = 0.07     Present…

Q: If you make yearly deposits of $1200 in a bank account, how much money will you have in your account…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where r = rate of interest i.e. 6% n = no. of…

Q: You invest in a company which expects to pay you the following amounts in return each year. Year 1:…

A: The formula for calculating the present value of a future cash flow is:​Where:FV = Future Value of…

Q: Present value for the case shown in the following table, calculate the present value of the cash…

A: We need to use present value formula below to calculate present value of single cash flows.wherePV=…

Q: Show the complete solution by showing your answer in terms of : • Cash flow diagram General Formula…

A: Here, Annual Payment is $70,000 Time Period is 12 years Interest Rate is 7% General Formula with…

Q: Assume that investing $ 1,000 entitles you to a ten-year cash flow that yields $ 100 the following…

A: In order to calculate, present value of cash flows, we are required to discount the current value…

Q: Complete the following 6 Wk 3 Financial Exercises: Problem Set 1, Part 2 problems: 1. Calculate the…

A: The process through which any entity or individual decides if a project is profitable and can be…

Q: Consider the following cash flow diagram. What is the value of X if the present worth of the diagram…

A: PRESENT WORTH FORMULA: PRESENT WORTH=FUTURE VALUE1+RATETIME

Q: Q1.26 Construct a cash flow diagram that represents the amount of money that will be accumulated in…

A: Initial Investment20000Annual cash flow3500Tenure,Year7