Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
3rd Edition
ISBN: 9780133507676
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 4, Problem 2P
What is the
Year 1 2 3 4 CF 100 -100 200 -200
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What is the present value of the following cash flow stream?
Year 01 to year 10: $300
Year 11 to year 20: $200
From year 21 and onwards: $100
Assume a 10% discount rate.
$1,835.20
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$2,465.81
$2,662.13
What is the present value of the following set of cash flows at a
10% discount rate?
Year
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OMR800
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OMR800
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What is the present value of the following cash flow at a 12% discount rate?
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Chapter 4 Solutions
Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
Ch. 4 - Prob. 1CCCh. 4 - Prob. 2CCCh. 4 - Prob. 3CCCh. 4 - Prob. 4CCCh. 4 - Prob. 5CCCh. 4 - Prob. 6CCCh. 4 - Howcanan infinitely...Ch. 4 - Prob. 8CCCh. 4 - Prob. 9CCCh. 4 - Prob. 10CC
Ch. 4 - Prob. 11CCCh. 4 - Whencashflowsoccur at anon-annual interval, what...Ch. 4 - What is the intuition behind the fact that the...Ch. 4 - What must be true about a cash flow stream in...Ch. 4 - Prob. 3CTCh. 4 - Prob. 4CTCh. 4 - Prob. 5CTCh. 4 - Prob. 6CTCh. 4 - What must be true about the growth rate in order...Ch. 4 - In what types of situations would it be useful to...Ch. 4 - Prob. 1DCCh. 4 - Prob. 2DCCh. 4 - Prob. 3DCCh. 4 - Calculate the present value of the salary...Ch. 4 - Prob. 5DCCh. 4 - Prob. 1PCh. 4 - What is the present value of the following set of...Ch. 4 - You want to borrow $10,000. You figure that you...Ch. 4 - Prob. 4PCh. 4 - You have just taken out a five-year loan from a...Ch. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - 11. Assume you can earn 9% per year on your...Ch. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - 14. The British government has a consol bond...Ch. 4 - Prob. 15PCh. 4 - 19. Your grandmother has been putting $1000 into a...Ch. 4 - 20. Assume that your parents wanted to have...Ch. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - 23. Assume that Social Security promises you...Ch. 4 - 24. When Alex Rodriguez moved to the Texas...Ch. 4 - Prob. 22PCh. 4 - A rich relative has bequeathed you a growing...Ch. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - 30. A rich aunt has promised you $5000 one year...Ch. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - 34. You have decided to buy a perpetual bond. The...Ch. 4 - Prob. 32PCh. 4 - 36. You are thinking about buying a piece oi art...Ch. 4 - 35. You are thinking of purchasing a house. The...Ch. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - 40. A local bank is running the following...Ch. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - 43. Suppose you currently have $5000 in your...Ch. 4 - 44. Your firm spends $5000 every month on printing...Ch. 4 - 45. You are looking to buy a car and can afford to...Ch. 4 - Prob. 43P
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- a. What is the present value of the following set of cash flows, discounted at 9.3% per year? Year 1 2 3 4 CF $12 $23 $34 $45 $56arrow_forwardAt a rate of 5.25%, what is the future value of the following cash flow stream? Year 0: $0 Year 1: $75 Year 2: $225 Year 3: $0 Year 4: $300arrow_forwardAt a rate of 10.0%, what is the future value of the following cash flow stream? Years: CFS: a. $820 b. $544 c. $672 d. $746 e. $726 0 $0 1 $75 2 $225 3 $0 4 $300arrow_forward
- What is the present value of the following cash flow stream at a rate of 15.0%? Years: 0 1 2 3 4 CFs: $0 $1,500 $3,000 $4,500 $6,000 Select one: a. $10,261 b. $12,453 c. $12,154 d. $10,859 e. $9,962arrow_forwarda. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 4 5 CF $10 $20 $30 $40 $50 b. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 4 CF $50 $40 $30 $20 $10 c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different? a. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 4 CF $10 $20 $30 $40 $50 The present value of the cash flow stream is $ (Round to the nearest cent.) b. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 2 3 4 CF $50 $40 $30 $20 $10 The present value of the cash flow stream is|. (Round to the nearest cent.) c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different? (Select the best choice below.)arrow_forwardAt a rate of 9.5%, what is the future value of the following cash flow stream? Years: CFS: 0 $0 1 $80 2 $240 3 $0 4 $320arrow_forward
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