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: what is the future value of cash flow of ¢2,000.00 for the first month and a monthly rise of 0.1%…

A: 1st deposit =2000 Increase per month = 0.1% = 0.001 Increase Factor(r) = 1+0.001 = 1.001 Number of…

Q: Calculate the equivalent uniform annual worth for the following set of cash flows. Round your answer…

A: Annual interest rate = 2% Period = 5 Years Initial investment = $ 755 Annual revenue = $ 503

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

A: Answer: Cash flow for first month = $4000 It decreases $75 every month till 5 years rate of…

Q: Calculate the equivalent lump-sum(total) receipt now for the following cash flows: You invest $3,000…

A: Equivalent lump sum receipt: It is the equivalent value of the lump sum received at a different…

Q: Find the total present worth of a series of cash flows with an annual interest rate of 2% per year.…

A: Annual interest rate = 2% Initial cash flow = 6628 Benefit at year 3 = 13477 Salvage value at year 4…

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 worth of a geometric gradient series with a cash flow of 60,000 pesos in year…

A: Cash flow in year-1 = 60,000 Annual increase = 7% Interest rate = 12% Period = 9 Years

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

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

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

A: Present value of cashflows = Cashinflows/(1+ Interest Rate) Equivalent uniform monthly cashflow =…

Q: Consider the cash flow series shown below. Determine the required annual deposits (end of year) that…

A: The present value of an annuity is the current value of a series of cash flow discounted at a…

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

A: Computation:

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is…

A: The future worth of the single of a single cash flow is calculated by the following formula. Here,…

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

A: The month 1 cash flow is $4,000 and the cash flow decreased by 75 monthly. The annual effective rate…

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

A: The time value of money becomes an important factor for capital budgeting decisions. It is an idea…

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 defined as the movement of the funds that inflows as well as outflows of the…

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: What is the present value of the following cash-flow stream if the interest rate is 12%? You receive…

A: In the given question we require to calculate the present value of the stream of cashflows.

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is…

A: Present worth is the sum total of present values of all future cash flows. It is calculated as…

Q: Find the annual worth in years 1 through 10 of an investment that starts at $8000 in year 1 and…

A: PV of single growing cashflow = (C(1+g)n)/(1+r)n Where C = cashflows = $8000 r = interest rate = 10%…

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

A: The question is based on the concept of Financial Management. Annuity refers to the series of…

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

A: Interest Rate = 12%/12 = 1% per month Cash Flow in month one = 4000 Cash Flow in month two = 3925…

Q: Ann knows that the effective rate is 17% per year compounded monthly. She has asked you to evaluate…

A: Interest rate (r) = 17% per annum  = 1.41667% per month Let cashflows be denoted by CFn. As the…

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

A: First, We need to compute the present value of cash flows using NPV formula in excel. Then we should…

Q: What is the present worth of cash flows that begin at $10,000 and increase at 8% per year when N is…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: Construct a cash flow diagram to find the present worth of a future outflow of $40,000 in year 5 at…

A: Present Value of cash outflow = Future Outflow / (1+Interest%)^Time Period Present Value of cash…

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

A: Interest Rate = 12%/12 = 1% per month Cash Flow in month one = 4000 Cash Flow in month two = 3925…

Q: Determine the present worth of the following cash flows based on an interest rate of 7.46% per year,…

A: ANSWER COMPUTATION OF PRESENT WORTH OF CASH FLOW END OF YEAR  FUTURE CASH FLOW(1) PRESENT…

Q: An investment project has annual cash inflows of $2,800, $3,700, $: for the next four years,…

A: The payback period method is a very important technique used in capital budgeting for assessing…

Q: Find the present worth of an investment that starts at $8000 in year 1 and increases by 10% each…

A: Time value It tells that value received today has more value than that of receiving the same value…

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

A: Geometric gradient is a series of flow of cash which keeps fluctuating by a perpetual percentage…

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: Create a spreadsheet to solve , Consider the following EOY geometric sequence of cash flows and…

A: PV: It is the present worth of cash flows that have occurred in the past or present.

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

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: What are the PW and FW of a 20-year geometric cash-flow progression increasing at 2% per year if the…

A: Present worth is the value of money today as compared to the future time. Present worth states that…

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.