HW Assignment 4-1

Question 2: In the following cash flow, how much should be deposited at the beginning of year 1 so that the four-year withdrawals as shown below can be made at the end of each year. Assume the interest rate is 13.5%. 24000 20000 16000 12000 012 3 4

Question 3) Suppose that next three years you will receive $100, $200, and $300 at the end of the first, second, and the third years, respectively. Assume that the yearly interest rate is %12. (a) Calculate the present value of this cash flow stream. (7 p.) (b) Calculate the annual equivalent of this cash flow stream. (4 p.) (c) Solve the questions in (a) and (b), if you receive the same amount of money, $100, at the end of each year. (3 p. + 1 p.)

Illustration 1 Calculate the future value of the following cash flow if it is invested @ 8% interest p.a. At the end of each year Amount Deposited 1 2,000 4,000 3. 6,000 4 8,000

Question 1 How much money should be deposited each year for 6 years starting 1 year from today, if you wish to withdraw $5604 each year for 9 years, beginning at the end of 15 years? Let i=12% per year. Round your answer to 2 decimal places. Upload the picture of your solution in Question 1 including cash flow diagram.

Intro You expect to receive two cash flows: $31,000 paid in 5 years and $46,500 paid in 10 years. You'll put the money into a savings account with an annual interest rate of 8%. Part 1 What is the future value of the combined cash flows, in 15 years? 0+ decimals Submit

part a and b

Question What is the value, 6 years in the future, of $3,707 invested to earn an annual return of 4.4% ? Enter your answer rounded to the nearest second decimal place. For example, enter $123.456 as $123.46. Flag question: Question 7 Question Imagine that you would like to withdraw $2,511 at the beginning of each year starting today and lasting for the next 8 years. Assuming the funds in the account are invested to generated an annual return of 6.4%, how much would you need to have in the account to fund this stream of payments? Enter your answer rounded to the nearest second decimal place. For example, enter $1,234.567 as 1234.57.

plz answer question 3.

I need the answer soon please

5. Present value 1. To find the present value of a cash flow expected to be paid or received in the future, you will _________   the future value cash flow by  2. What is the value today of a $12,000 cash flow expected to be received seventeen years from now based on an annual interest rate of 7%? $37,906 $5,888 $3,799 $4,749 3. Your broker called earlier today and offered you the opportunity to invest in a security. As a friend, she suggested that you compare the current, or present value, cost of the security and the discounted value of its expected future cash flows before deciding whether or not to invest. The decision rule that should be used to decide whether or not to invest should be: everything else being equal, you should invest if the discounted value of the security’s expected future cash flows is greater than or equal to the current cost of the security.   everything else being equal, you should invest if the discounted value of the security’s expected future…

1. Future Value For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today and held until the end of the deposit period if the interest is compounded annually at the rate specified. Part Single CF Interest Rate Deposit Period (Years) PV I/Y N A $900 3% B $1200 6% C $16,000 9% D $40,000 10% 6 8 12 15

SAVING ACCOUNT

K Suppose you receive $500 at the end of each year for the next three years. a. If the interest rate is 7%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 7% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)? a. The present value of the cash flow is $ (Round to the nearest cent)

Question: Use the following information to answer the next two questions: You deposited the following stream of cash flow at the end of the year: Year                                               deposit                                rate of interest  1                                                    5000                                          8%   4                                                    4000                                         8.5%   6                                                    7000                                         10% What will be the total amount in your account at the end of 6 years?        2. What is the present value of your deposit?

Problem 8. What is the equivalent worth in year 5 of the following series of income and disbursements, if the interest rate is 10% per year? Year Income, S 0 0 1-5 6000 6-8 6000 9-14 8000 Answer: Equation: CFD: Expense, S 9000 6000 3000 5000

4

Find the present worth of the cash receipts in the accompanying diagram if i = 8% compounded annually, with only four interest factors.

Please find attached the Chap 2-Problem 177 in Principles of Engineering Economic Analysis, White, 6e

Do all

SOLUTION WITH CASH FLOW DIAGRAM PLS

4-78 A A set of cash flows begins at $20,000 the first year, with an increase each year until n = 10 years. If the interest rate is 10%, what is the present value when (a) the annual increase is $2000? (b) the annual increase is 10%? 6.

Can u also answer part 2

3.51 Find the equivalent present worth of the cash receipts where i = 9%. In other words, how much do you have to deposit now (with the second deposit in the amount of $300 at the end of the first year) so that you will be able to withdraw $300 at the end of second year, $180 at the end of third year, and so forth if the bank pays you an 9% annual interest on your balance? $450 $300 $180 $180 1 2 3 4 5 Years $300 Figure P3.51

5. Present value To find the present value of a cash flow expected to be paid or received in the future, you will the future value cash flow by (1+1)N What is the value today of a $42, 000 cash flow expected to be received 17 years from now based on an annual interest rate of 7% ? $13,296 $10,637 $132, 670 $20, 609 Your broker called carfier today and offered you the opportunity to invest in a security. As a friend, he suggested that you compare the current, or present value, cost of the security and the discounted value of its expected future cash flows before deciding whether or not to invest. The decision rule that should be used to decide whether or not to invest should be. Everything else being equal, you should invest if the discounted value of the security's expected future cash flows is greater than or equal to the current cost of the security. Everything else being equal, you should invest if the current cost of the security is greater than the present value of the security's…

6. Computing Future Value of Annual Deposits. What amount would you have if you L deposited $2,500 a year for 30 years at 8 percent (compounded annually)? (Use time value of money calculations in Chapter 1 Appendix.) e here to search 17 to 4M to 144 16 40 73 14 I01 12 米 E T 00 86 R 4. 24 3.

Please solve

Question 5 Suppose you deposit $2,000 at the end of each quarter for five years at an interest rate (APR) of 8% compounded monthly. Which of the following formulas will determine the present worth value of your savings at the end of year 5? P = $2000(P/A,8%,5) P = $2000(P/A,2.01%,20) P = $2000(P/A,8%,20) OP= $2000(P/A,2.01%,5) Question 6 How many years will it take an investment to triple if the interest rate is 6% compounded continuously? (round up your answer to the nearest integer) 20 22 21 19