Determine the value of X that makes the following two cash flow diagrams equivalent when the interes rate is 10% per period. 800 800 800 800 800 800 800 10
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- Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)Consider the following cash flow diagram. What is the value of X if the present worth of the diagram is $400 and the interest rate is 15% compounded annually? a. $246 b. $165 c. $200 d. $146.A cash flow series is described by the following: $10,000 + $250(t), where t is the number of compounding periods. The present worth of this series at the end of five periods, where interest is 2% per t, is nearest what value? (a) $11,250 (b) $50,620 (c) $56,432 (d) $60,620?
- Consider the following cash flow profile: Suppose the positive-valued cash flows are now replaced by a geometric series. If the cash flow at end of year 1 is $10,000, what geometric rate is required for the cash flow profiles to be equivalent? Interest is at a compounded annual rate of 6%.Consider the cash flow shown in the graph and assume that the interest rate is 10%. What is the value of X at to ensure that cash flow shown has a future value of $1,500,000? Answer to the closest dollar.Consider the following cash flows. The interest rate is 10%. What is the duration (hint: you need PV)? Year 0 1 2 3 4 Cash flow 100 200 300 400
- Consider the following future value problem. The respective cash flows for t = 0, 1, 2, and 3 are $3,000, $2,000, $8,000, and $5,000 and the discount rate is ten percent. What is the future value at t = 4?At a rate of 8%, what is the present value of the following cash flow stream? $0 at Time 0; $100 at the end of Year 1; $300 at the end of Year 2; $0 at the end of Year 3; and $500 at the end of Year 4? use excel.What uniform series over the interval [11,20] will be equivalent to a uniform series of $10,000 cash flows over the interval [1,10] based on: a. A 6% interest rate? b. A 10% interest rate?
- Consider the following cash flow diagram. What value of C makes the inflow series equivalent to the outflow series at an interest rate of 10% compounded annually?Find the value of the unknown quantity, P0, that establishes equivalence in the cash-flow diagram below. Suppose i = 20% per year. Use an annuity factor and a uniform gradient factor in your solution.Find the value of X so that the present value of the following cash flow is equal to $70,000. Consider an interest rate of 10% per year. End of year 1 2 3 4 5 6 7 8 9 10 Cash flow 3,000 4,000 6,000 10,000 X 14,000 16,000 18,000 20,000 22,000