Consider the following investment cash flows with the interest rate of 9% compounded annually. End of Year Net Cash Flow End of Year Net Cash Flow 0 $0 4 $200 1 $500 5 − $100 2 − $100 6     − $100 3 $800 7      $700   Find the present worth of the cash flows using the actual cash flows. Find the future worth of this cash flow series using the actual cash flows. Find the future worth using the present worth. Find the worth of the series at EOY 3 using the individual cash flows. Find the present worth using the worth at EOY 3.

Q: Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B…

A: given, r=13% year cashflow B 0 -2500 1 2770 2 2470 3 2170 4 1870 5 1570 npv 5388.66…

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: 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: 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: 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 cash flows below, determine the amount in year 1, if the annual worth in years 1 through 9…

A: Annual Worth :— The annual worth is the net of all the benefits and costs incurred over a one-year…

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: 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: Construct a cash flow diagram to find the present worth in year 0 of a $400 expenditure in year 3, a…

A: Year Cash Expense DF @15% Amount at year 0 3 400 for 3 years= 2.28 175.44 =400/2.28 4 (900)…

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: 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: Determine the expected present worth of the following cash flow series if each series may be…

A: Expected present worth can be defined as the mean or average value of the given variables which…

Q: The present worth in year 10 of a decreasing geometric gradient series was calculated using…

A: a

Q: (a) Using tabulated factors for the cash flow series shown, calculate the future worth at the end of…

A: Future value refers to the future worth of current cash flow at a  certain rate of interest and…

Q: Use the cash flow diagram below to calculate the present amount, which equivalent to all the cash…

A: Present Value(PV) is current value of amount that is due to paid or received in future that us…

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: 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: • For the cash flow series shown below, a) Find the present worth b) Find the equivalent annual…

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

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 cash flow profile: Using a gradient series factor, determine the present…

A: Present value is the discounted value of a single cash flow or a series of cash flow. It states that…

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: Number of years to provide a given return In each of the following cases, determine the number of…

A: In this question we are given different cases of investment with different initial amounts, annual…

Q: An arithmetic cash flow gradient series equals $850 in year 1. $950 in year 2. and amounts…

A: The present worth method is used to determine whether an investment project should be undertaken or…

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 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: Consider the following three cash flow series: End of Year Cash Flow Serles A Cash Flow Series B…

A: Calculate NPV by deducting present value of cash inflows and cash outflows of cash flow series B and…

Q: The investment shown in the following figure has an annual equivalent worthof $200 at i = 8%.…

A: annual worth formula: annual worth=npv ×r1-11+rn

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: 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: Calculate the duration for the following cash flows of an investment. Given the market interest…

A: Year Cash flow 0 0 1 140 2 150 3 160 4 170 5 180 6 190 7 200 8 250 Interest…

Q: The cash flow profile for an investment is given below and the interest rate is 8% compounded…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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: 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: 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: Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B…

A: NPV or net present value of any investment is calculated in order to know the present value of…

Q: For the cash flows shown, find the value of x that makes the equivalent annual worth in years 1…

A: Equivalent annual worth is the tool which can be used by investors for assessment of investment…

Q: Consider the following investment cash flows with the interest rate of 9% compounded annually. End…

A: A study that proves that the future worth of the money is lower than its current value due to…

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: 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: An investment has the following cash flow series where interest is 8%: a. Determine the present…

A: There are two ways to consider a money’s time value i.e. compounding and discounting. Compounding…

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.