/transcriptRequired informationAs indicated, some of the cash flows are expressed in future (then-current) dollars and others in current-value (today's)dollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year.Year10314Cash Flow, $19,00038,50022,00028,5007Skip to questionExpressed AsToday'sThen-currentThen-currentToday'sNOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.Find the present worth of the estimated cash flows.The present worth of the estimated cash flows is $91451.92

Present worth is the value of an amount of money at a particular point in time, specifically the…

Answered: Required information As indicated, some…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.12: Uneven, Or Irregular, Cash Flows

Problem 3ST

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Assume San Lucas Corporation in MAD 26-1 assigns the following probabilities to the estimated annual net cash flows: a. Compute the expected value of the annual net cash flows. b. Determine the expected net present value of the equipment, assuming a desired rate of return of 10% and the expected annual net cash flows computed in part (a). Use the present value tables (Exhibits 2 and 5) provided in the chapter in determining your answer. c. Based on your results in parts (a) and (b), should San Lucas Corporation invest in the equipment?
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…….
What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 -$1,977 1 $421 2 $889 3 $517 4 $939 Assume an interest rate of 3%
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
In a geometric sequence of annual cash flows starting at the end of year zero, the value of A at e zero(Ao) is $1304.35( which is cash flow). The value of the last term in the series, A10 is $5276.82 what is equivalent value for A for year 1-10? Interest is 10%.
What is the present value of the following set of cash flows at an interest rate of 8% p.a. compounded annually? End of Year 1 $1,150 End of Year 2 $2,300 End of Year 3 $5,100 Select one: a. $7,401.20 b. $7,085.23 c. $8,550.00 d. $7,805.23
Find the present worth of the following estimated cash flows. As indicated, some are expressed in then-current (future) terms and others in today’sdollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year.
What is the present value of the following cash flow stream at a rate of 10.0%? Years: 0 1 2 3 CFs: $750 $2,450 $3,175 $4,400 a. $10,755.00 b. $13,143.15 c. $11,855.25 d. $9,722.73 e. $8,907.02
What is the present value of the following cash flow stream at a rate of 8.0%? Years 0 1 2 3 4 Cash Flows ($) 750.00 2,450.00 2,450.00 - 4,000.00
Consider the following investment cash flows with the interest rate of 9% compounded annually. End of Year Net Cash Flow End of Year Net Cash Flow 0 $0 4 $200 1 $500 5 − $100 2 − $100 6 − $100 3 $800 7 $700 Find the present worth of the cash flows using the actual cash flows. Find the future worth of this cash flow series using the actual cash flows. Find the future worth using the present worth. Find the worth of the series at EOY 3 using the individual cash flows. Find the present worth using the worth at EOY 3.
What is the present value of the following set of cash flows, discounted at 15.2% per year? Year 1 2 3 4 CF $109 −$109 $200 −$200 The present value of the cash flow stream is $______. (Round to the nearest cent.)
Consider the following investment cash flows with the interest rate of 9% compounded annually. End of Year Net Cash Flow End of Year Net Cash Flow 0 $0 4 $200 1 $500 5 − $100 2 − $100 6 − $100 3 $800 7 $700 Find the present worth of the cash flows using the actual cash flows. Find the future worth of this cash flow series using the actual cash flows. Find the future worth using the present worth.

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