Year Cash Flow0$0.001$110.002$121.003$133.104$146.415$161.056$177.167$194.87$214.36$235.79$259.37$285.31$313.84$345.23$379.75891011121314151617181920$417.72$459.50$505.45$555.99$611.59$672.75The cash flow in Year 1 is equivalent to ($100.00)*(1.10), and all other cash flows then growat an annual rate of 10 percent per year. The correct discount rate is 8 percent.What is the present value of the cash flows in the odd years? That is, what is the sum of theten present values of the cash flows in Year 1, Year 3, ..., Year 17, and Year 19?

The concept of time value of money will be used here. As per the concept of time value of money the…

Answered: Year Cash Flow 0 $0.00 1 $110.00 2…

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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Abhaliya
Year Investment $13,000 $10,000 Cash Inflow $1,000 $2,000 $2,500 $4,000 $5,000 $4,000 $5,000 $4,000 $3,000 $2,000 Determine the Payback Period. 1234567899
S50 S50 S70 S90 SI10 S130 For the following cash flow, if the PP is semiannually and i= 12% per year compounded monthly, Find the present worth of the cash flow
Internal rate of return and modified internal rate of return. Quark Industries has three potential projects, all with an initial cost of $2,100,000. Given the discount rate and the future cash flow of each project in the following table, E, what are the IRRS and MIRRS of the three projects for Quark Industries?
Question 1 At a certain discount rate the present values of the following cash flows are equal (a) 808 at the end of 4 (b) 426 at the end of 4 years plus 1000 at the end of 8 years At the same discount rate, find the net present value of 100 deposited now, 200 deposited in 4 years and a withdrawal of 128 at the end of 8 years A 157 72 B 819.94 C The answer does not appear here D. 1090.84 OE 195 08
Free Cash Flow method Needed for this what is the total value? How did you get there
Initial Outlay Cash Flow in Period 1 2 3 4 $4,000,000 $1,546,170 $1,546,170 $1,546,170 $1,546,170 The Internal Rate of Return (IRR) =? A) 10%. B) 18%. C) 20%. D) 24%.
D Open recovered wor x✓ fx 0 A B C D E F OMEGA PROJECT CASH FLOW INFORMATION Year Inflow Outflow = Newflow 0 1 2 3 G -$225,000 -$190,000 $150,000 $190,000 $215,000 $175,000 $197,000 $70,000 $582,000 $225,000 0 $190,000 $150,000 0 $220,000 $30,000 4 $215,000 0 5 $205,000 $30,000 6 $197,000 0 7 $100,000 $30,000 Total $1,087,000 $505,000 Required ROI 18% Project Omega NPV (Year 0) Project Omega Total NPV Which of the two projects would you fund and why? ▶ 3T Company Data + Ready have on project selection? (Reference Section 2.4, pg 38-39) 19 MAY 910 30 H NPV I K L M N O ALPHA PROJECT CASH FLOW INFORMATION Year Inflow Outflow = 0 1 $50,000 2 $150,000 3 $250,000 4 $250,000 5 $200,000 6 $180,000 7 $120,000 Total $ 1,200,000 Required ROI Project Alpha NPV (Year 1). Project Alpha NPV 1 tv $300,000 $100,000 0 $50,000 0 $50,000 0 $30,000 $530,000 18% d P Newflow -$300,005 -$50,000 $150,000 $200,000 $250,000 $150,000 $180,000 $90,000 $670,000 A Q NPV
Initial investment (CF) Year (t) 1 567GA WN 2 3 4 8 Machine A $85,300 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 Machine B $60,300 Cash inflows (CF₂) $11,500 $13,700 $15,600 $18,400 $20,300 $25,400 Machine C $130,300 $50,200 $30,300 $20,500 $20,100 $20,300 $29,900 $39,600 $49,900
Year 1: $16,000 Year 2: $21,000 Year 3: $28,000 Years 4 through 6: $0 Year 7: $130000 what is the future value of this cash flow at 4%, 12%, and 18% interest rates at the end of year 7?
QUESTION 26 Find the IRR of an investment having initial cash outflow of $213,000. The cash flows, and corresponding dates are given below. ($213,000) 1/1/2013 $65,200 $96,000 $73,000 $55,400 A. B. 8.45% 12.32% C. 15.67% D. None of the above 5/7/2014 4/3/2015 6/8/2016 2/9/2017

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