Problem 4 Given: Cash transactions (arithmetic gradient series) with increasing negative gradient. 1 3 4 6. 7 10 12 13 14 15 Yrs i = 10%/year 425 500 575 650 725 800 875 Required: The equivalent present worth at year 0, Po.
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- What is the NPV of the following cash flows if the required rate of return is 0.09? Year 0 1 2 3 4 CF -4,529 2,431 572 1,804 3,132 Enter the answer with 2 decimals (e.g. 1000.23).Calculate the NPV of the following cash flows using a 10% discount rate? The first cashflow is negative, Year 0= -900, all others are positive Year 1= +100, Year 2= +100, Year 3= +400, Year 4= +500, Year 5= +500 a. $36 b. $ 520 c. $ 996 d. $ 326 e. $ 226Year Cash Flow ($) 0 17,700 1 10,000 2 8,900 3 5,400 What is the profitability index for the set of cash flows if the relevant discount rate is 11 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
- Consider the following cash flows: Year Cash Flow 0 –$ 34,000 1 13,600 2 18,100 3 11,000 What is the IRR of the cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)n.com Connect (i) Consider the following cash flows: Year Cash Flow 0 -$29,600 1 14,100 2 14,800 3 11,200 a. What is the profitability index for the cash flows if the relevant discount rate is 11 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161 b. What is the profitability index if the discount rate is 16 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. c. What is the profitability index if the discount rate is 23 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. a. Profitability index b. Profitability index c. Profitability index.What is the net present value of the following set of cash flows at a discount rate of 5 percent? At 15percent? Multiple Choice $1, 018.47; -$628.30 $1,620.17: $2, 618.99 $1,620.17: $525.13 $722.09; - S1,708.16 $722.09: $418.05
- What is the internal rate of return for the following set of cash flows?Year Cash Flow0 -$60,0001 20,0002 20,0003 40,0004 40,000 Do not answer in excel format. Please give formula/handwritten or TI-84 calculator methodWhat is the payback period for the following set of cash flows? (Round answer to two decomals, i.e. 32.16) Period Cash Flow 0 -6700 1 2200 2 3800 3 1000 4 4000What is the NPV for the following set of cash flows with a discount rate of 16.7 percent? (Round answer to two decimals, i.e. 32.16) Period Cash Flow 0 -6700 1 2200 2 3800 3 9000 4 4000
- Year Cash Flow 0 –$ 17,700 1 10,000 2 8,900 3 5,400 a. What is the profitability index for the set of cash flows if the relevant discount rate is 11 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. What is the profitability index for the set of cash flows if the relevant discount rate is 16 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the profitability index for the set of cash flows if the relevant discount rate is 23 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)Consider the mixed streams of cash flows shown in the following table. YEAR A B1 $50,000 $10,0002 $40,000 $20,0003 $30,000 $30,0004 $20,000 $40,0005 $10,000 $50,000 Totals $150,000 $150,000 (a) Find the present value of each stream using a 15% discount rate(b) Compare the calculated present values and discuss them in light of the fact that the undiscounted cash flows total $150,000 in each case.How many IRRs could the following cash flows produce? YR CF 0 -200,000 1 -50,000 2 80,000 3 90,000 4 120,000 5 70,000