Compute for the following. Given the uneven streams of cash flows shown in the following table,answers parts A & B:Cash Flow StreamEnd of YearABPhp 50,000 Php 10,0001240,00020,00030,00030,000420,00040,00010,00050,000Undiscounted Php 150,000 Php 150,000Totala. Find the present value of each stream, using a 15 percent discount rateSTREAM ASTREAM BYear (t)CF: x (1+15%).tPresent Value (PV)Year (t)CF: x (1+15%).tPresent Value (PV)50,000 x .869565PHP 43,478.26110,000 x .869565PHP 8,695.65240,000 x .756144PHP 30,245.75220,000 x .756144PHP 15,122.87330,000 x .657516PHP 19,725.49330,000 x .657516PHP 19,725.49420,000 x .571753PHP 11,435.06440,000 x .571753PHP 22,870.13510,000 x .497177PHP 4,971.7750,000 x .497177PHP 24,858.84ТОTALPHP 109,856.33TОTALPHP 91,272.98b. Compare the calculated present values, and discuss them in the light of the fact that theundiscounted total cash flows amount to Php 150,000 in each case.PLS, ANSWER LETTER B ONLY.

The present discounted value (PDV) is an estimate of the total amount of money received over a…

Compute for the following. Given the uneven streams of cash flows shown in the following table, answers parts A & B: Cash Flow Stream End of Year A в Php 50,000 Php 10,000 1 2 40,000 20,000 3 30,000 30,000 4 20,000 40,000 10,000 50,000 Undiscounted Php 150,000 Php 150,000 Total a. Find the present value of each stream, using a 15 percent discount rate STREAM A STREAM B Year (t) CF: x (1+15%)-t Present Value (PV) Year (t) CF: x (1+15%)t Present Value (PV) 1 50,000 x .869565 PHP 43,478.26 10,000 x .869565 PHP 8,695.65 40,000 x .756144 PHP 30,245.75 2 20,000 x .756144 PHP 15,122.87 3 30,000 x .657516 PHP 19,725.49 3 30,000 x .657516 PHP 19,725.49 PHP 11,435.06 PHP 22,870.13 PHP 24,858.84 4 20,000 x .571753 4 40,000 x .571753 5 10,000 x .497177 PHP 4,971.77 50,000 x .497177 TOTAL PHP 109,856.33 ТОTAL PHP 91,272.98 b. Compare the calculated present values, and discuss them in the light of the fact that the undiscounted total cash flows amount to Php 150,000 in each case. PLS, ANSWER LETTER B ONLY.

Compute for the following. Given the uneven streams of cash flows shown in the following table, answers parts A & B: Cash Flow Stream End of Year A в Php 50,000 Php 10,000 1 2 40,000 20,000 3 30,000 30,000 4 20,000 40,000 10,000 50,000 Undiscounted Php 150,000 Php 150,000 Total a. Find the present value of each stream, using a 15 percent discount rate STREAM A STREAM B Year (t) CF: x (1+15%)-t Present Value (PV) Year (t) CF: x (1+15%)t Present Value (PV) 1 50,000 x .869565 PHP 43,478.26 10,000 x .869565 PHP 8,695.65 40,000 x .756144 PHP 30,245.75 2 20,000 x .756144 PHP 15,122.87 3 30,000 x .657516 PHP 19,725.49 3 30,000 x .657516 PHP 19,725.49 PHP 11,435.06 PHP 22,870.13 PHP 24,858.84 4 20,000 x .571753 4 40,000 x .571753 5 10,000 x .497177 PHP 4,971.77 50,000 x .497177 TOTAL PHP 109,856.33 ТОTAL PHP 91,272.98 b. Compare the calculated present values, and discuss them in the light of the fact that the undiscounted total cash flows amount to Php 150,000 in each case. PLS, ANSWER LETTER B ONLY.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 4MAD

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