Answered: For the cash flows shown, calculate the…

For the cash flows shown, calculate the future worth in year 13 using i= 8% per year. 2 200 Year 4 300 Cash flow, $ 200 200 200 300 300 The future worth is calculated to be $

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 1eM

See similar textbooks

Related questions

Q: Refer to the shown table of cash flows: What is the annual worth of these cash flows over 16 years…

A: Net Present value (NPV) is used to determine the net cash flow generated from the investment over…

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: efer to the following table of cash flows: End of year: 0 4 8…

A: We need to discount the cash flows @ 5% to compute the present worth of cash flows

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 shown, calculate the future worth in year 13 using i= 9% per year. Year 2 3 4 5 6…

A: Interest rate = 9% Period = 13 Years

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: For the cash flows shown, calculate the future worth in year 8 at i = 10% per year.Year…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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: Compute the value of P for the accompanying cash flow diagram. Assume i = 6% per year.

A: Present value (PV), if the stated rates of return are provided, is the current value of a future…

Q: Find the present worth in year O for the cash flows shown. Let -13% per year. 8 Year 50 70 90 110…

A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

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: e value at the end of the 8th year for the cash flow diagram shown below if i=4% ded annually. What…

A: Future Value is the value of cash flow at a future point in time. For calculating the future value…

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: The future worth in year 8 for the cash flow series shown is $20,000. At an interest rate of 10% per…

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: At a rate of 10.0%, what is the future value of the following cash flow stream? Years: 1 4 CFs: $0…

A: Future value is the future worth of cash flows that has occurred in the past or present.

Q: In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams…

A: To calculate equivalent cash flows at end of year 5, present value of cash flows will be calculate…

Q: What are the equivalent present worth, annual worth, and future worth of the cash flow given in the…

Q: Find the size of B in the following cash flow diagram if the interest is 8% per year. $130 1 H 2…

A: Data given: Rate=8% Arithmetic gradient from year 1 to 5= - $20

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: a. For the cash flows shown in the table, calculate the future worth in year 8 usingi = 10% per…

A: Given information : Year Cash flows 0 200 1 200 2 200 3 200 4 200 5 300 6 300 7 0…

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: 1. Use the cash flow diagram to determine the uniform annual amount in years 1 through 8 that is…

A: Uniform annnual amount=(cash flow×i)i=10%Uniform annual rate:=0.10(25×5+50×3)=27.5Hence uniform…

Q: Given: Base amount = $500, gradient = -$100, i = 10%, n = 3. For the given values, determine the…

A: NPV can be calculated by following function in excel =NPV(rate,value1,[value2],…) + Initial…

Q: .Find the present worth in year 0 (PT) for the cash flow diagram using an interest rate of 15% per…

A: present value formula: present value = future value1+rn r=rate n=year

Q: For the following cash flow, calculate the equivalent AW. Assume i= 8% per year. Year Incomes…

A: Equivalent annual worth is the calculated by present value of annuity formula, where the present…

Q: W $1,000 $1,000 1 3 4 7 End of Year End of Year $1,000

A: Computation of net present value for the left hand side is as…

Q: Refer to the following table of cash flows: End of year 0 3 6 9 12 Cash Flow P25,000 P25,000…

A: Annual worth has equal value to future value when cash flows occur uniformly throughout life.

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: Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF -$80 1 $22 2 $22 3 $22…

A: The question is based on the concept of calculation of External rate of return (ERR). ERR is a…

Q: 1) What is the present worth of this cash flow diagram given i = 8.66% ? 2) What is the future worth…

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

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: For the cash flows shown, calculate the future worth in year 13 using i = 12% per year. Year 0 1 2…

A: Future worth is the value of present worth of a cash flow to be received on a future date with a…

Q: What is the present value of a stream of cash flows, which has the timeline given below. (After year…

A: Present value of a stream of cash flows = sum of present values of cashflow discounted at 10% PV of…

Q: In the following cash flows diagram, Determine the Future Worth at the end of year 12 f the interest…

A: Future value = cashflow *(1+rate)^years

Q: What is the present worth (P) of all the cash flows if F=16000, n36 years, and i= 8% per year?…

A: The present worth is the sum of the discounted values of the future cash flows.

Q: Find the ROR of the following cash flow. MARR is 18% per year. Year 0 1 3 4 5 7 8 Cash -32,000…

A: The ROR is the interest rate that results in net present worth(NPW) of project zero. It can be…

Q: Calculate the future worth in year 7 of Merchant Trucking Company’s cash flows. Use an interest rate…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: For the cash flows shown in the diagram, determine the value of x and 2x that will make the future…

A: Calculation of values of x and 2x:Answer:The values of x and 2x are 10,744.42 and 21,488.84

Q: For the cash flows shown in the diagram, determine the value of x and 2x that will make the future…

A: Interest rate = 10% per year Formula sheet: Factor Values are calculated as:

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

A: Net present value is excess of present value of cash inflows over present value of cash outflows.…

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: For the cash flows shown in the diagram, determine the equivalent uniform annual worth over years 1…

A: First, we will compute the NPV of the cash flows and then use the annuity formula to compute the…

Q: For the cash flows shown, determine the future worth in year 5. Year Cash Flow, $/Year Estimated i…

A: Future Value is the value of current investments at a certain future date at the assumed…

Question

For the cash flows shown, calculate the future worth in year 13 using i= 8% per year.
2
200
Year
4
300
Cash flow, $ 200
200
200
300
300
The future worth is calculated to be $

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

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)
An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second year. What is the payback period? a. 1.67 years b. 0.50 year c. 2.00 years d. 1.20 years e. Cannot be determined
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
How much would you invest today in order to receive $30,000 in each of the following (for further instructions on present value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
Current and projected free cash flows for Radell Global Operations are shown here. Growth is expected to be constant after 2020, and the weighted average cost of capital is 11%. What is the horizon (continuing) value at 2021 if growth from 2020 remains constant?
Brook Corporation’s free cash flow for the current year (FCF0) was $3.00 million. Its investors require a 13% rate of return on (WACC = 13%). What is the estimated value of operations if investors expect FCF to grow at a constant annual rate of (1) −5%, (2) 0%, (3) 5%, or (4) 10%?
For the cash flows shown, determine the future worth in year 5. Year Cash Flow, $/Year Estimated i Per Year 0 5000 12% 1– 4 6000 12% 5 9000 20%
For the cash flows shown, calculate the future worth in year 13 using i = 12% per year. Year 0 1 2 3 4 5 6 Cash flow, $ 200 200 200 200 300 300 300 The future worth is calculated to be $ ____.
For the cash flows shown, calculate the future worth in year 8 at i = 10% per year.Year 0 1 2 3 4 5 6 Cash flow, $ 100 100 100 200 200 200 200
For the cash flow series shown, determine the future worth in year 5 at an interest rate of 10% per year.Year 1 2 3 4 5 Cash Flow, $ 300,000 275,000 250,000 225,000 200,000
Compute the future worth of the following cash flows at (a) i = 3% per year, (b) i = 12% per year, if PW= $ 1581.48, compounded annually. Explain the results.
For the cash flows shown, find the value of x that makes the equivalent annual worth in years 1 through 7 equal to $300 per year. Use an interest rate of 10% per year. Year Cash Flow, $ Year Cash Flow, $ 0 x 4 300 1 300 5 300 2 300 6 300 3 300 7 x