Consider another set of net cash flows:   Year Cash flow 0 1,000 1 1,000 2 0 3 1,500 4 2,000 5 3,500     What is the net present value of the stream if the opportunity cost of capital is 10 percent?

Q: 1. The following cash-flow streams need to be analyzed: END OF YEAR CASH-FLOW STREAM 2 3 4 5 $100…

A: Future value is the compounded value of a present amount after a certain time and on a certain rate…

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

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

Q: Given the following cash flows, find the internal rate of return. Use an interest rate of 8% as a…

A: An internal rate of return or IRR is defined as the financial metric, which used in the financial…

Q: What is the present value of the following set of cash​ flows, discounted at 15.2% per​ year?…

A: Given:

Q: 1- Calculate the rate of return to be obtained for the investment to be made in the 1st year…

A: Investment means engaging your funds to generate income in the future. The rate of return (ROR)…

Q: 4. An investment has the following cash flows. What is the ARR? Year 0 -90,000 Year 1 45,000 Year 2…

A: Year Cash Flows 0 -90,000 1 45,000 2 10,000 3 30,000 4 30,000

Q: 2. At an interest rate of 10% per year, calculate the capitalized cost of $10,000 (cost) in year 0,…

A: Capitalized Cost=-Initial Cost-Annual Payment×(P/A, r%, n years)-Terminal Payment×(P/F, r%, n years)

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

A: Present value (PV) refers to the current value of a future sum of money or cash flows computed at a…

Q: What is the future value of this cash flow stream at the beginning of year 7 : $100 at the end of 1…

A: Note: The Answer mentioned in the question is wrong, we will solve the correct one for you as per…

Q: Year Cash Flow 0 −$8,200           1 2,500           2 4,100           3 3,900             What is…

A: Profitability index- It is an index that gives a measure of a project's attractiveness. It is…

Q: 1- Calculate the rate of return to be obtained for the investment to be made in the 1st year…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: 2. For the cash flows shown below, determine the present worth at an interest rate of 12% per year.…

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

Q: What is the present value of the following cash flow stream at a rate of 15.0%? Years: 1 3. CFs: $0…

A: Present value is a current worth of cash flows that are expected to occur in the future.

Q: Construct a cash flow diagram for the following cash flows: $10,000 outflow at time zero, $3000 per…

A: Outflow at time 0= ($10,000) Inflow in years 1 through 5= $3000 per year Time= 5 years Rate= 5%…

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: Consider the following cash flows over a 5-year period: −$100,000 @ t = 0;$35,000 @ t = 1; $45,000 @…

A: Net cash flows and cumulative cash flows Year Net Cash Flow  Cumulative Cash Flow 0 -100,000…

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: What is the present value of the following set of cash flows at an interest rate of 6% p.a.…

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

Q: Consider an uneven cash flow stream: Year Cash Flow 0 $2,000 1 $2,000 2 $0 3 $1,500 4…

A: Before we get into the solution, let's understand two reciprocal concepts:If present value (PV) is…

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: What is the present value of the following cash flow stream at a rate of 15.0%? Years:…

A: Present value of cash flows means value as on date of all the future cash flows that are to be…

Q: 1- Calculate the rate of return to be obtained for the investment to be made in the 1st year…

A: In manual calculation, we have to use hit and trial method. In this method, we start by arbitrarily…

Q: 3. Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through…

A: Introduction: Present Value of cash flows:  It identifies today's value for the future cash flows or…

Q: 1. The following cash-flow streams need to be analyzed: END OF YEAR CASH-FLOW STREAM 1 2 3 4 $100…

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

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: What is the future value at the end of year three of the following set of cash flows at an interest…

A: Future Value = Present value * ( 1 + Interest rate)time period

Q: The future value of a cash flow occurring 36 months from today is $15000, and its present value is…

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: What is the present value of the following cash flow stream at a rate of 6.25%? Years 1 2 3 4…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Given the following cash flow, what is the payback period? Time Cash Flow -$670,850 |1 310,020 2…

A: Using the cumulative table in excel

Q: 1. An investment has the following cash flows - what is the payback ? Question 1 Year 0 -120,000…

A: Payback period means the time with in which we will get our investment amount back.

Q: $1,000 $1,000 2T $500 $500 2 3 4 5 6 2 3 4 5 EOY EOY 3T.

A: For calculating the value of 'T' we shall find the present value of both the cash flows and compare…

Q: 1. Draw a cash flow diagram showing payments of S6000 now, $2500 two years from now and $4500 six…

A: Given That : Cashflow = $6,000 now , $2500 two years from now and $4500 six years from now Interest…

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: For the value of P shown, what is the NPV for the cashflow? Value of P S1,000 Rate 5% Year Cash Flow…

A: NPV is calculated as the difference of present value of inflows and outflows associated with 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: What amount of cash would result at the end of one year, if $15,000 is invested today and the rate…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: What is the CW, when i=10% per year, of $1,500 per year starting in one year and continuing forever,…

A:

Q: Consider another set of net cash flows:   Year Cash flow 0 1,500 1 2,000 2 0 3 1,500 4…

A: Formulas:

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: $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

Q: A sum of $10,000 now (time 0) is equivalent to the following cash flow diagram. What is the value of…

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

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.