Below is an equation to compute the present value of a cash flow series. Determine the cash flow profile that is implied by the equation. P = −7,000 + [1,850 + 200 (A|G8%, 6)] (P|A8%, 6) (P|F8%, 4)
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Below is an equation to compute the present value of a cash flow series. Determine the cash flow profile that is implied by the equation. P = −7,000 + [1,850 + 200 (A|G8%, 6)] (P|A8%, 6) (P|F8%, 4)
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- Refer to the accompanying cash-flow diagram (see Figure), and solve for the unknown quantity in If G = $1,000, N = 12, and i = 10% per period, thenF = ? that makes the equivalent value of cash outflows equal to the equivalent value of the cash inflow, F.What is the NPV of the following cash flows if the required rate of return is 0.06? Year 0 1 2 3 4 CF -9,866 2,389 4,782 3,390 871 Enter the answer with 2 decimals (e.g. 1000.23).In computing the equivalent present worth of each given cash flow series atperiod zero, which of the following expressions is incorrect?(a) P=$500(P/A, i, 4)(P/F, i, 4).(b) P = $500(F/A, i, 4)(P/F, i, 7).(c) P= $500(P/A, i, 1)-$100(P/A, i, 3).(d) P = $500[(P/F, i, 4) + (P/F, i, 5) + (P/F, i, 6) + (P/F, i, 7)].
- What is the payback period for the following set of cash flows? (Round answer to two decomals, i.e. 32.16) Period Cash Flow 0 -6700 1 2200 2 3800 3 1000 4 4000Using spreadsheet financial formula, calculate the following PV of an uneven cash flow stream3. At a rate of 5%, what is the present value of the following cash flow stream? $0 at Time 0; $250 at the end of Year 1; $600 at the end of Year 2; $0 at the end of Year 3; and $700 at the end of Year 4?Consider the following cash flows: Year Cash Flow 0 –$7,400 1 2,100 2 4,700 3 1,900 4 1,600 What is the payback period for the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- For the cash flows shown, determine: (a) the number of possible i* values (b) the i* value displayed by the IRR function (c) the external rate of return using the MIRR method if ii = 18% per year and ib = 10% per year. Year 0 1 2 3 4 Revenues, $ 0 25,000 19,000 4000 18,000 Costs, $ −6000 −30,000 −7000 −6000 −12,000Consider the following cash flows: Year Cash flow 0 -25000 1 7000 2 6000 3 5000 4 3000 5 3000 6 1500 7 1500 8 500 Compute the rate of return represented by the cash flows.An arithmetic cash flow gradient series equals $350 in year 1, $450 in year 2, and amounts increasing by $100 per year through year 12. At i = 11% per year, determine the present worth of the cash flow series in year 0. What is the present worth of the cash flow series in year 0?
- In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand cash-flow diagram? Let i = 10% per year. Show clear calculations.Construct a NPV profile and determine EXACTLY how many non-negative IRRs you can find for the following set of cash flows: Time 0 1 2 3 4 5 6 7 Cash flow -$150 $275 $150 -$100 $300 -$300 $200 -$300Consider the following cash flows: Year Cash Flow 0 −$28,300 1 15,400 2 13,500 3 9,900 a. What is the profitability index for the cash flows if the relevant discount rate is 9 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. What is the profitability index if the discount rate is 14 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the profitability index if the discount rate is 25 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)