Answered: For the cash flows shown, determine the…

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%

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1MC

See similar textbooks

Related questions

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: For the cash flows shown, calculate the future worth in year 13 using i= 8% per year. 2 200 Year 4…

A: INTRODUCTION Technique of calculating the future worth of a cash flow is known as compounding.…

Q: 2. Using the indirect method of cash flow statement, what is the net cash provided by investing…

A: Cash flow statement (CFS) refers to one of the financial statement which states the inflows as well…

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

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: Analyze below Cash Flow and compute for the unknown value. ... EOY (end of year) $5 $5 $5 $10 $15…

A: Here, Interest Rate (r) is 10% Compounding Period (m) is Semi Annual i.e 2 Payment Period (p) is…

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: Compute the present value for the cash flow diagram shown below if i=6%, compounded annually. $500…

A: Year Cash Flow 1 300.00 2 300.00 3 300.00 4 100.00 5 200.00 6 300.00 7 400.00 8…

Q: 6. Determine the equivalent present worth in year 0 (PT) of all of the cash flows at i = 12% per…

A: Data given: i= 12% Initial cash flow in year 0 = $30000 Annual cash flow from year 1 to 3 = $5000…

Q: What is the present value of the cash flow given below, interest at 8% compounded semi-annually. 0.5…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: What is the future value of the following cash flows AT THE END OF YEAR 5, assuming a 6% interest…

A: Interest rate is 6% Compounded annually To Find: Future value at the end of 5 years

Q: Question attached

A: Net Present Worth is the sum of present value of 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: öf thé nát is the present value of the followin annually? Beginning Cash Flow of Year 1 P2,500 2…

A: The present value of a future sum of money or stream of cash flows with a fixed rate of return is…

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: 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: What is the present value of the following cash flow stream at a rate of 6.25%? YEAR O=O YEAR 1= P75…

A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

Q: What is the IRR of the following cashflows? Year 1: - $120 Year 2: + $20 Year 3: + $90 Year 4: -…

A: IRR is that rate of return which makes the worth of future cash flows equal to the existing worth.

Q: What is the payback period for the following set of cash flows? (Round your answer to 2 decimal…

A: The payback Period indicates the time period under which the initial investment or initial outlay is…

Q: a. What is the present value of the following set of cash flows, discounted at 9.3% per year? Year 1…

A: Companies are invested into projects for the purpose of expecting some cash flows. The projects are…

Q: What is the present value of the following cash flow stream at a rate of 8.0%? Years 0 1 2 3 4 Cash…

A: Present value is calculating by discounting the cash flows at required rate of return i.e. 8%.

Q: Р450 Р370 Р290 Р210 Р130 Р50 Р50 3. i = 10% F

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: What is the present value of the following cash flow stream at a rate of 6.25%? Years 1 2 3 4 Cash…

A: Discount rate = 6.25% Year Cash flow 0 0 1 75 2 225 3 0 4 267.8

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

A: According to the rule, we will answer the first three subparts only, for the remaining parts, kindly…

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 future value of the following cash flows AT THE END OF YEAR 5 assuming a 6% interest…

A: We will use the following formula : F=P(1+r100)nWhere,F=future value P=present value r=rate of…

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: What is the present value of the following cash flow stream at a rate of 6.25%? Years 1 2 3 4…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: For the cash flows and interest rate shown below, determine the present worth 600 Cash flow in year…

A: Present worth is the value of investment currently. It is based on the interest rate and years for…

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: 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: Analyze below Cash Flow and compute for the unknown value. ... 2 3 4 7 8 9 10 EOY (end of year) $5…

A: Interest rate = 10% semiannually compounded Let CFn = Cashflow in year n n = 10 years

Q: Can you please confirm my calculations: discount rate is 6%; end of year cash flows are as follows:…

A: Given information: Initial Investment = $20,000 Yearly Cash Flows = $5000 Time = 5 years Discount…

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: 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…

Question

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%

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

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

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
AFN EQUATION Refer to Problem 16-1. What additional funds would be needed if the companys year-end 2019 assets had been 4 million? Assume that all other numbers are the same. Why is this AFN different from the one you found in Problem 16-1? Is the companys capital intensity the same or different? Explain.
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 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 $ ____.
What is the present value of a stream of cash flows, which has the timeline given below.(After year 11, all cash flows are $500)Discount rate is 10%. CF $850 850 850 850 500 500 500 750 700 500 500…….Year 0 1 2 3 4 5 6 7 8 9 10 11…….
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
Find the present worth in year 0 for the cash flows shown. Let i = 16% per year.
For the cash flows shown, calculate the equivalent annual worth in years 1 through 4 at an interest rate of 10% per year. Year 0 1 2 3 4 Cash Flow, $ 250,000 275,000 300,000 325,000 375,000
For the cash flows shown, determine the future worth in year 5 at an interest rate of 10% per year compounded continuously. Solve using (a) tabulated factors, and (b) a financial calculator. Year 1 2 3 4 5 Cash Flow, $ $300,000 0 $250,000 0 $200,000
For the cash flows shown, determine the value of G that makes the present worth in year 0 equal to $14,000. The interest rate is 10% per year.Year 0 1 2 3 4 Cash flow, $ per year — 8000 8000-G 8000-2G 8000-3G
Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %19. Year Cash Flow 0 -3000 1 2000 2 4000 3 -1000 4 3000 5 4000 6 -5000 7 9000 Select one: a. 0.2988 b. 0.2638 c. 0.2565 d. 0.3073 e. 0.2783 f. 0.3491
The annual worth for years 1 through 8 of the cash flows shown is $30,000. What is the amount of the cash flow labeled x in year 3, if i = 10% per year? Solve using (a) tabulated factors, and (b) a spreadsheet.