For each requirement, change the values of the given information as shown and keep all other original data the same. Then enter your updated final answers for each scenario.Scenario A: Future value to be received$10,000 Future date received 3years Discount Rate6%10%16% Scenario B: Annual Cash Receipt$5,000 Number of Years 6years Discount Rate6%10%16% Scenario C:Discount Rate 8%Investment ProjectCash FlowInitial Investment$(6,500) Year 1$700 Year 2$800 Year 3$1,400 Year 4$3,600 Year 5$6,800 Required:a. A company is expecting to receive a lump sum of money at a future date from now. Using the PV formula in Excel, what is the Present Value of that money at three different rates? (Round your answers to 2 decimal places.) Required:a. A company is expecting to receive a lump sum of money at a future date from now. Using the PV formula in Excel, what is thePresent Value of that money at three different rates? (Round your answers to 2 decimal places.)Discount Rate6%10%16%b. A company is expecting to receive a stream of year-end annual cash payments over multiple years. Using the PV formula in Excel,what is the Present Value of that money at three different didcount rates? (Round your answers to 2 decimal places.)Discount RatePresent Value6%10%16%Present Value c. A company is planning to invest in a project over a 5-year period, but wants to know its financial implications. It expects the cash in-flow return on the investment to steadily increase over the 5 years. Using the information given, help to determine the Total Net CashFlows, the Net Present Value, and the estimated Payback Period. Note: Estimate the payback period to the nearest year. (Round yourNet Cash Flow values to the nearest whole dollar and your final Net Present Value answer to 2 decimal places.)Investment ProjectInitial InvestmentYear 1Year 2Year 3Year 4Year 5NPV of investmentEstimated Payback PeriodTotal Net Cash Flow

Present value is calculated when we have information about either the future amount or the annual…

Answered: For each requirement, change the values…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 11E

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Question

For each requirement, change the values of the given information as shown and keep all other original data the same. Then enter your updated final answers for each scenario.

Scenario A:


Future value to be received	$	10,000
Future date received		3	years

Discount Rate

10%

16%

Scenario B:


Annual Cash Receipt	$	5,000
Number of Years		6	years

Discount Rate

10%

16%

Scenario C:

Discount Rate 8%

Investment Project	Cash Flow
Initial Investment	$	(6,500)
Year 1	$	700
Year 2	$	800
Year 3	$	1,400
Year 4	$	3,600
Year 5	$	6,800

Required:

a. A company is expecting to receive a lump sum of money at a future date from now. Using the PV formula in Excel, what is the Present Value of that money at three different rates? (Round your answers to 2 decimal places.)

c. A company is planning to invest in a project over a 5-year period, but wants to know its financial implications. It expects the cash in-
flow return on the investment to steadily increase over the 5 years. Using the information given, help to determine the Total Net Cash
Flows, the Net Present Value, and the estimated Payback Period. Note: Estimate the payback period to the nearest year. (Round your
Net Cash Flow values to the nearest whole dollar and your final Net Present Value answer to 2 decimal places.)
Investment Project
Initial Investment
Year 1
Year 2
Year 3
Year 4
Year 5
NPV of investment
Estimated Payback Period
Total Net Cash Flow

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