Am. 121. Different cash flow. Given the following cash inflow at the end of each year, what is the future value of this cash flow at 5%, 12%, and 15% interest rates at the end of year 7?.What is the future value of this cash flow at 5% interest rate at the end of year 7?(Round to the nearest cent.)Data table(Click on the following icon in order to copy its contents into a spreadsheet.)Year 1:Year 2:$16,000$18,000$29,000Years 4 through 6:Year 7:$0$160,000Year 3:PrintDone- X

Step 1:We have to calculate the future value of the cash flows at the interest rate of 5%.The…

Answered: Different cash flow. Given the…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 29P

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Similar questions

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)
Different cash flow. Given the following cash inflow at the end of each year, what is the future value of this cash flow at 7%, 10%, and 16% interest rates at the end of year 7? Year 1: $13,000 Year 2: $22,000 Year 3: $30,000 Years 4 through 6: $0 Year 7: $120,000 What is the future value of this cash flow at 7% interest rate at the end of year 7? $nothing (Round to the nearest cent.)
Create a spreadsheet to solve , Consider the following EOY geometric sequence of cash flows and determine the P, A, and F equivalent values. The rate of increase is 20% per year after the first year, and the interest rate is 25% per year.
An arithmetic cash flow gradient series equals $600 in year 1, $800 in year 2, and amounts increasing by $200 per year through year 5. At i = 6% per year, determine the factor from the compound interest factor table that is used to calculate the equivalent annual worth of the revenue through year 5. Multiple choice question. A. 4.212 B. 5.637 C. 1.884 D. 7.934
What is the value of the following cash flows in year 6? What is the value today? Assume interest rates today are 6.5%, then rates will be 6.25% for the next 4 years, 3.75% for the next 3 years, 5.3% for the next 4 years, and 3.75% thereafter. year cashflow 6 5,675 8 9,725 10 6,750 17 11,750 Must show work with formulas provided.
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%.
Suppose that a geometric gradient begins with $17,000 at the end of 3 years and increases by 12% every year thereafter for 9 years. If the interest rate given on this account is 20%, determine the present worth of the cash flows. Note: Do not use excel.
What is the present worth of cash flows that begin at $10,000 and increase at 8% per year when N is 4 years? The interest rate is 6%.
Solve the following and draw the cash flow diagram What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $21618 is made at the end of year 11, and subsequent withdrawals increase at the rate of 10% per year over the previous year’s, if the interest rate is 10%, compounded annually? Interest rate should be rounded of by 5 decimal places and final answer to 2 decimal places Note: Do not use excel
What is the PV of a continuous stream of cash flows, amounting to $2,140 per year, starting immediately and continuing for 17 years? The continuously compounded rate is 9%. Please solve by formulas not Excel.
What is the present value of a savings account that is expected to pay $1,250 of cash inflow at the end of year 1, $0 cash inflow at the end of year 2 and $1,050 cash inflow at the end of 3rd year given the rate of return 10% in the first and second year and 12% in the third year? Please Show the work
The present value of the following cash flow stream is$7,300 when discounted at 8 percent annually. What is the value of the missing cashflow? Year Cash Flow1 $1,5002 ?3 2,7004 2,900

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