Calculate the value of x for the cash flows below such that the equivalent total value in year 8 is $20,000, using an interest rate of 15% per year. Year          Cash flow, $                      Year             Cash flow, $ 0             2000                                      6                    x 1             2000                                      7                    x 2                x                                         8                    x 3                x                                         9                1000 4                x                                        10               1000 5                x                                        11               1000

Q: An arithmetic cash flow gradient series equals $500 in year 1, $600 in year 2, and amounts…

A: Computation:

Q: For the cash flows shown in the diagram, determine the future worth in year 8 at an interest rate of…

A: Cash flow analysis is done in order to measure the liquidity of the entity. The cash flow chart…

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: An arithmetic cash flow gradient series equals $800 in year 1, $900 in year 2, and amounts…

A: A cash flow series is a series of equal payments, that is, in a cash flow series there are regular…

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: For the cash flows shown in the diagram, determine the future worth in year 8 at an interest rate of…

A: Future value is referred to as the current asset value at future date on the basis of an assumed…

Q: For the following cash flow diagram, the equation that represents the equivalent at the end of (year…

A: Annuity refers to series of equalized payments that are either made at start or end of specific…

Q: What is the present value of the following sets of cash flows, discounted at 10% per year? Year 1…

A: Years 0 1 2 3 4 5 Cash flows   10 20 30 40 50

Q: For the given cash flow, if the equivalent uniform annual payments is $2000 and the interest rate is…

A: Uniform annual payment = $2000 i = 4% = 0.04 Period = 9 years Future value of annuity is calculated…

Q: Can you estimate the annual rate of return to grow $5,000 to $20 million in 51 years?  Show cash…

A: The following information is provided.FV = 20,000,000PV = 5000n = 51 years Annual rate of return can…

Q: At a rate of 9%, what is the present value of the following cash flow stream? $0 at Time 0; $1,000…

A: Introduction:- Present value is the current value of the future sum of money, at a specified rate of…

Q: 5. For the cash flow shown in the diagram, determine the future worth in 8 years at an interest rate…

A: A concept through which it is studied that the current worth of money is higher than its future…

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: Find the present worth of the following estimated cash flows. As indicated, some are expressed in…

A: Nominal interest rate is the rate of return which an investment yield to the investor. When the…

Q: The future worth in year 8 for the cash flow series shown is $20,000. At an interest rate of 10% per…

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

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

A: Cash flow diagrams visually represents cash inflows and outflows through a diagram, where any…

Q: Given the following cash flows, what is the future value at year ten when compounded at an interest…

A: Future value of an asset is the value of that asset at a future date at a given growth rate. It is…

Q: For Example: Find the present value of a series of cash flows occurred in different years when the…

A: Present value is a concept that is used to calculate the current value of a future amount of money…

Q: An arithmetic cash flow gradient series equals $600 in year 1, $700 in year 2, and amounts…

A: Present worth is the sum of the discounted values of all the future cash flows.

Q: Let i = 10% per year, find the present worth in year 0 for the cash flows diagram shown below: i =…

A: Interest Rate = 10% Cash Flows: Year Cash Flow 1 50 2 50 3 70 4 90 5 170 6 130 7…

Q: Let i = 10% per year, find the present worth in year 0 for the cash flows diagram shown below: i =…

A: Present Value of cash flow is the cash flow of a certain year multiplied by the discounting factor…

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 below Cash Flow, find the total PW value using 10% interest rate years cost $ 3,065 1…

A: Present worth is sum of all cash flows discounted at certain discount rate.

Q: Consider the following cash flow diagram. Compute the equivalent annual worth at i-12% $5,000 $6,000…

A: Cash-Flow diagram depicts amount of cash that is either received (inflows) or paid (outflows) over…

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: .Find the present worth in year 0 (PT) for the cash flow diagram using an interest rate of 15% per…

A: present value formula: present value = future value1+rn r=rate  n=year

Q: For the cash flows shown, calculate the equivalent annual worth in years 1 through 4 at an interest…

A: YEAR CASH FLOW   DISCOUNT RATE 10% 0 250000.00 1 275000.00 2 300000.00 3 325000.00 4…

Q: Find the present worth of cash flows of $1000 that start now (time 0) and continue through year 10,…

A: Present Value:  The present value (PV) is the present sum of a series of fixed payments. The series…

Q: Find the annual worth (AW) that is equivalent to the following cash flow diagram, if the interest…

A: Given information: Interest rate: 8% Year Cash flows 0 0 1 0 2 2000 3 3000 4 4000 5…

Q: For the cash flows shown, determine the future worth in year 5 at an interest rate of 10% per year…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: Find the equivalent value at time 0 of the cash flow in the following diagram assuming 1000 1000 0 1…

A:

Q: Compute the equivalent annual value of the following cash flows using an annual interest rate of…

A: Annual Interest Rate = 5% Cash Flows:  Year  Cash Flow 0 3,000.00 1 2,000.00 2 2,000.00 3…

Q: For the cash flow series shown, determine the future worth in year 5 at an interest rate of 10% per…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: quivalent worth for the annual cash flow series at an interest rate of 10% per year compounded…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: What is the present value of the following set of cash flows, discounted at 10% per year?  year 1…

A: The provided information are: Discount rate (r) = 10% = 0.10 The formula to compute the present…

Q: Find the value of X so that the present value of the following cash flow is equal to $70,000.…

A: We will use the concept of time value of money. As per the concept of time value of money for…

Q: Given the cash flow diagram, what is the uniform annual equivalent value at the end of each year for…

A:

Q: In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams…

A: Rate ie. i =12% We have to find the Present Value of 1st diagram and then we have to calculate the…

Q: flows for an investment with an economic life of 5 years are as follows: k0 = -10000, k1 = k2 = k3 =…

A: The net present value is the difference between the present value of cash flow and initial…

Q: Calculate the equivalent AW at i 10% per year for the following net cash flow: Year Cash flow, $…

A: Given: Year Cash flows 0   1 -$2,000.00 2 -$2,000.00 3 -$2,000.00 4 $5,000.00 5…

Q: Given the following cash flows, what is the future value at year six when compounded at an interest…

A: The value of the cash flow after a particular time period with the addition of the interest amount…

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: For the cash flows shown, determine the value of G that makes the present worth in year 0 equal to…

A:

Q: The future worth in year 8 for the cash flows shown is $20,000. At an interest rate of 10% per year,…

A: The formula to compute future value as follows:

Q: An arithmetic cash flow gradient series equals $350 in year 1, $450 in year 2, and amounts…

A: The cash flows that decrease or increase by the same amount is known as arithmetic cash flows.

Q: $20,000 now is equivalent to cash flows worth 5X at the end of year 3, 4X at the end of year 4, 3X…

A: present value of each cash flow = cash flow/(1+rate)^n

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.