11. An asset is expected to generate a free cash flow of $10,000 per year for five years. If the required discount rate is 15%, what is the asset worth in the market? *

Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

Q: What is the present value of end-of-year cash flows of $1,000 per year, with the first cash flow…

A: Present value (PV) is the worth of amount today that is expected to be received in future at…

Q: A set of cash flows begins at $60,000 and increases at 10% per annum for the next 12 years. If the…

A: Begining Cash flow is $60,000 Cash flow growth rate is 10% per annum Time Period is 12 Years…

Q: 5. The present value of a $25,000 perpetuity at an 11 percent discount rate is? A firm wishes to…

A: Present value of prepetuity = amount / discount rate

Q: What present value amounts to $15,000 if it is invested for 20 years at 6% compounded annually?…

A:

Q: 19. A business worth $180,000 is expected to grow at 12% per year compounded annually for the next 4…

A: a) The question gives the following information:

Q: You invest $12,650 in a project today. You expect to receive cash flows $3,200, $5,160, $4,288,…

A: Discounted payback period is calculated as number of years required for a project to recover the…

Q: In one year, a project will be worth $10,000. What is that project worth today assuming a discount…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: An investment pays 10​% interest compounded continuously. If money is invested steadily at the rate…

A: Continuous Compounding: It is the maximum limit of the compound interest if it is calculated and…

Q: 3. An investment offers P4,900 per year for 15 years, with the first payment occurring one year…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: 22. You plan to purchase a property which has an expected NOI of $200,000. You plan to borrow…

A: DCR stands for debt coverage ratio. This ratio is used to measure the ability of a project to use…

Q: What present value amounts to $25,000 if it is invested for 20 years at 5% compounded annually?…

A: Solution Concept The interest rate compounded annually means the interest is charged on interest and…

Q: An investment project costs $50,000 and has annual cash flows of $3,500 for 20 years. What is the…

A: Discounted Payback period refers to one of the modern techniques which measure the time that the…

Q: Draw a Cash Flow Diagram for P10,535 being loaned out at an interest rate of 12% per year over a…

A: Simple Interest per annum = Principle * Rate * Time = P10,535 * 12% * 1 = 1264.2   Cash flow diagram…

Q: What is the present value of a cash flow stream of $1,000 per year annually for 11 years that then…

A: Cash flow at end of 11 years = Cash flow of 11th year * (1+growth rate)/ discount rate - growth rate…

Q: What is the net present value of a project that has an initial cost of $40,000 and produces cash…

A: Initial Cost is $40,000 Cash Inflows of $8,500 for 10 years. Discount rate is 12.68%   To Find:- Net…

Q: What is the present value of your end-of-year investment of $1,000 per year, with the first cash…

A: According to the time value concept, the purchasing power of a sum of money today is more than the…

Q: At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?

A: We use rate function to calculate interest rate

Q: What is the present value of a stream of $800 cash payments, each to be made at the end of the next…

A: Given:

Q: A project has an initial cost of $56,000 and is expected to generate a single cash inflow of $77,000…

A: Excel Spreadsheet:

Q: Which is the correct answer? Use the following table for this question Present value of an Annuity…

A: Net present value is the difference between Present Value of cash Inflows and Initial Investment.…

Q: a) The cost of a proposed project is $10,000 and has annual cash flows pf $2,900 for six years. a.…

A: The discounted payback period is the time period in which the project will recover the initial cash…

Q: 10. Determine the present value now of an investment of OMR3,000 made one year from now and an…

A: The money's worth varies with time. Therefore, we consider the value of the money with time. Today's…

Q: An investment project has annual cash inflows of $2800, $3700, $ 5100, and $4300, for the next 4…

A: Discount Rate = 9%   Cash Flows:  Year  Cash Flow 0 -5,200 1 2,800 2 3,700 3 5,100 4…

Q: How much is an asset with expected annual cashflows of $19,000 for 11 years worth today, if the…

A: Present value considers the time value of money concept. It considers the discounting factor at…

Q: What is the net present value of a project

A: While choosing which investment project will be undertaken, different investment appraisal…

Q: is the present value of $10000 to be received 20 years from now, if the principal is invested at 8%…

A: Given, Amount to be received, A = $10,000 No. of years, n = 20 Interest rate , i = 8% or 0.08

Q: :Sidir steinəl What is the present value of your end-of-year investment of $1,000 per year, with the…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: A firm is considering a six-year project with a payback period of 3.5 years. It has cash flows the…

A: Payback period means the period when the project is able to recover its initial investment without…

Q: A company expects to receive the following cash flows $2,000 for the first ten years and then $3,000…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: g) Find the present value of Ugx 120,000 payable in 5 years' time, assuming that an investment rate…

A: Using the PV function

Q: You are offered an investment opportunity that costs you $175,000, has an NPV of ($364.86), lasts…

A: YEAR CASH FLOW      1  $      10,000.00 2  $      10,000.00 3  $      10,000.00 4  $…

Q: What is the IRR of an investment of 2 million with a yearly savings of 500,000 for 10 years and a…

A: Internal Rate of Return (IRR) is that discounting rate at which Net Present Value of the project is…

Q: What is the present value of your end-of-year investment of $1,000 per year, with the first cash…

A: present value formula: present value =A×1-11+rnr where, r=discount rate n=number of years

Q: What is the present value of end-of-year cash flows of 1000 per year, with the first cash flow…

A: Present value is the sum of discounted future cashflow

Q: 9) A project has an initial cost of $65,000, expected net cash inflows of $11,000 per year for 9…

A: Payback period: It is the duration within which the initial cost of a project is recovered.

Q: What is the present worth of cash flows that begin at $30,000 and decrease at 10% per year for 5…

A: Given that , Cash flows = $30,000 no.of years (t)= 5 years  interest rate (r)= 15%

Q: 1. If you invest P10,000 with a rate of interest of 12% compounded annually, compute the interest of…

A: Investment amount (X) = P 10000 Interest rate = 12% Inflation rate = 10% n = 10 years

Q: rate of interest, compounded annually, will result in the receipt of $15938.48 if $10000 is invested…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: present value

A: Present Value is the computed amount today of either a single sum amount or a series of payments to…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.