Calculate the present worth of a geometric gradient series with a cash flow of 60,000 pesos in year 1 and increases of 7% each year through year 9. The interest rate is 12% per year.

Q: Find the value of x that makes the equivalent annual worth in years 1 through 10 equal to $800 per…

A: Calculation of values of x and 2x:Answer:The value of x is 4,915.75

Q: Determine the present value in year zero of a gradient series that begins with a cash flow of $7,000…

A: Interest rate = 8% Cash flow in year 5 = $7000 Annual increase in cash flow = 8%

Q: Suppose  you expect to receive the following future cash flows at the end of the years indicated.…

A: Future value- Year       FV 2          $2300 4          $5200 5          $2600 9          $8000…

Q: Consider the following three cash flow series: Determine the values of X and Y so that all three…

A: Cash flow for the series is computed using excel: Result is:

Q: If you are calculating the present value of this cash flow under semiannual (twice per year)…

A: Future Value: It represents the value of annual cash flows or the sum of money at a later/future…

Q: A cash flow at time zero (now) of $9,982 is equivalent to another cash flow that is an EOY annuity…

A: Zero time cash flow = End of the year annuity amount × ((P/A, i5)

Q: Calculate the present worth of a geometric gradient series with a cash flow of $40,000 in year 1 and…

A: Interest Rate = 10% Annual Increase = 6% Initial Cash Flow = 40,000 Time Period (N) = 10 years

Q: A scries of cash flows begin at $15,000 the first year and steadily increasc over the next few years…

A: "Hi, Thanks for the Question. since you asked multiple question, we will answer the first question…

Q: Calculate the present value of the following stream of cash flows: cash flows of $7,000, quarterly…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: annual payment from a cash flow is expected to grow 4% per year from year 1 to year 10, after which…

A: The present value of cash flow would be the equivalent value today that is equivalent to cash flow…

Q: Calculate the future (terminal) value of each stream at the end of year 5 with a compound annual…

A: Future Value: Future value is the value of an asset after a particular period of time, considering…

Q: Calculate the value of x for the cash flows below such that the equivalent total value in year 8 is…

A: Equivalent value of a cash flow, Ct occurring at time t, at the end of year n = Ct x (1 + r)n - t…

Q: What is the present value of a perpetual stream of cash flows that pays $5, 000 at the end of year…

A: Cashflows = $5,000 Growth rate = 4%  Discount rate = 11%

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: A cash-flow series is increasing geometrically at the rate of 8% per year. The initial payment at…

A: Computation:

Q: Suppose that a geometric gradient begins with $17,000 at the end of 3 years and increases by 12%…

A: Present worth of the cash flows is the present value of the money today as the value of money in the…

Q: Calculate the present worth of a geometric gradient series with a cash flow of 60,000 pesos in year…

A: Present Worth: The notion of present value asserts that a sum of money is worth more now than it…

Q: A set of cash flows begins at $20,000 the first year, with an increase each year until n = 10 years.…

A: Information provided: Initial cashflow = $20,000 n = 10 years interest rate = 8%   Present value =…

Q: Consider the following two cash flow series of payments: Series A is a geometric series increasing…

A: Total amount paid should be equal to the cost. Value of X will be equal to the sum of PV of future…

Q: 1. Consider the following cash flow payments An income of $2000 at the end of year 2, an income of…

A: YEAR CASHFLOW 1   2  $   2,000.00 3   4  $   5,000.00 5   6   7   8  $   3,000.00…

Q: Calculate the present value of the following net cash flows if the discount rate is 12%. Year Cash…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: Consider the following EOY geometric sequence of cash flows and determine the P, A, and F equivalent…

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

Q: For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth…

A: The calculation is shown:

Q: The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is…

A: The future value of a cash flow series depends on the interest rate and time period for which it has…

Q: Consider a cash flow that lasts for ten years. the initial value A occurs at the third year,…

A: Present Value of series = 34,717 Interest Rate = 8% Annual Growth Rate = -6% Cash flows start at end…

Q: What is the present value of a perpetual stream of cash flows that pays $2,500 at the end of year…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: The cash flow associated with a stripper oil well is expected to be $4,000 in month one, $3,925 in…

A: Cash flow is referred to as the movement of the funds, which includes the inflow as well as the…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. The…

A: Future value is basically calculated by compounding the present value at a given rate.

Q: What is the present value of a perpetual stream of cash flows that pays $5, 000 at the end of year…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: At an interest rate of 12% per year, the cash inflows generated by a gold mining operation are…

A: Gradient is the uniform change in value of cash flows at each uniform interval. Gradient =…

Q: At a rate of 8%, what is the present value of the following cash flow stream? $0 at Time 0; $100 at…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: How much money should be deposited each year for 7 years starting 1 year from today, if you wish to…

A: Let the annual deposit = A i = 8% We need to find the future value of deposits at the end of 13…

Q: Consider an EOY geometric sequence of cash flows in which the first payment made was P2,000. This is…

A: Annuity refers to a constant stream of payments made at regular intervals for a defined period. The…

Q: The present value of the following cash flow stream is $7,300 when discounted at 8 percent annually.…

A: Cash Flow means the movement of cash either into or outside of the business.

Q: 2. Mathias Company estimated that it has a 20% probability of receiving $240,000 one year from now,…

A: Present value of cash inflow means where cash inflow will be discount as per given percentage so as…

Q: A series of cash flows starts at $1,000 at the end of the first year and increases each year for the…

A: Future value of cash flow includes the deposit and plus interest accumulated over the period of…

Q: Consider two streams of cash flows, A and B. Stream A is expected to have three cash [5] flows at…

A: In order to decide which streams of income would be preferable, one need to calculate the present…

Q: 1. Consider the following cash flow payments: An income of $2000 at the end of year 2, an income of…

A: Cash flow Diagram for the cash flow payments.

Q: Calculate the present worth of a geometric gradient series with a cash flow of $35,000 in year 1 and…

A: The computation of PW is done below:

Q: Consider two streams of cash flows, A and B. Stream A is expected to have three cash flows at the…

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

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.