The present value of the following cash flow stream is $8,650 when discounted at 9.5 percent annually. What is the value of the missing cash flow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)   1  $2,250 2    ??? 3   2,850 4   3,450

Q: For each of the following annuities, calculate the annual cash flow. (Do not round intermediate…

A: The net present value is a very common and one of the most important terminologies used in…

Q: The present value of the following cash flow stream is $6500 when discounted at 10% annually.  What…

A: The calculation of the missing cash flow is as follows:     Hence, the cash flow of the 2nd year is…

Q: What lump sum would have to be deposited today into an account bearing interest of 10% per year to…

A: Lump sum payment today should be sufficient enough to enable withdrawals at T8,9,10 and 11. For that…

Q: What is the future worth of P1,000 if it is invested at 12% compounded annually for the first year,…

A: Because you have multiple questions , we will answer the first question only, for the remaining…

Q: For the following cash flow diagram, the equation that represents the equivalent at the end of (year…

A: Annuity refers to series of equalized payments that are either made at start or end of specific…

Q: The cash flows shown in the table below occur every six months (bi-annually) and have a total…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: What is the present value of the following set of cash​ flows, discounted at 15.2% per​ year?…

A: Given:

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: For the given cash flow, if the equivalent uniform annual payments is $2000 and the interest rate is…

A: Uniform annual payment = $2000 i = 4% = 0.04 Period = 9 years Future value of annuity is calculated…

Q: If you are calculating the present value of this cash flow under semiannual (twice per year)…

A: Future Value: It represents the value of annual cash flows or the sum of money at a later/future…

Q: Lemon’s evaluation of its cash outlay required indicates that it needs 200,000 for the year.…

A: The question is based on the concept of optimal cash level in a business by use of the Baumol model…

Q: At a rate of 9%, what is the present value of the following cash flow stream? $0 at Time 0; $1,000…

A: Introduction:- Present value is the current value of the future sum of money, at a specified rate of…

Q: A cash flow at time zero (now) of $9,982 is equivalent to another cash flow that is an EOY annuity…

A: Zero time cash flow = End of the year annuity amount × ((P/A, i5)

Q: For the given cash flow, if the equivalent uniform annual payments is $5000 and the interest rate is…

A: When the periodic cash flows are constant for the period, it is known as annuity. Annuity is…

Q: Compute the future value of a $140 cash flow for the following combinations of rates and times. (Do…

A: Future value(FV) value of current amount at future date that is computed by compounding current…

Q: What is the future value at the end of year three of the following set of cash flows at an interest…

A: Given: Year Cash flows 1 $150 2 $300 3 $500

Q: Compute for the present value of the following future cash inflows discounted at 10%: 1,000 a year…

A: We need to compute  the present value of the given future cash inflows.

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 present value of the following set of cash flows, discounted at 15.7% per year? Year 1 4…

A: Present value is calculated by discounting the future cash flow at the given discount rate.…

Q: Given the cashflow tabulated below. What is the payback period using the discounted method at…

A: Discounted payback period is the most common capital budgeting technique which aims to ascertain…

Q: Find the present worth of the cash receipts in the accompanying diagram if i = 8% compounded…

A: The present value is the present worth of future cash flows discounted at a rate of interest and…

Q: Calculate to at least four decimal places, answers should be stated as percentages to two places for…

A: Internal rate of return or IRR is the rate at which the net present value or NPV of a project is…

Q: What is the PRESENT VALUE of a ₱20,000 single payment with annual rate of 12% to be compounded…

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

Q: The following present value factors are provided for use in this problem. Present Value Present…

A: The question is related to Capital Budgeting. The Net Present Value is calculated with the help of…

Q: The appropriate discount rate for the following cash flows is 6.98 percent per year.    Year   Cash…

A: Present value of cash flows can be calculated by discounting all the cash flows at required rate of…

Q: For each of the following annuities, calculate the annual cash flow. (Do not round intermediate…

A: Given, The present values, interest rate and number of years of the annuities. Required: To…

Q: What is the present value of the following set of cash flows, discounted at 15.8% per year? Year 1 3…

A: The present value method is a method of finding the profitability of a project by discounting cash…

Q: Today, there is a negative cash flow of $2485. In year 1, you have a positive cash flow of $2170. In…

A: Present value is mainly calculated by discounting the future cash flor at the appropriate discount…

Q: The appropriate discount rate for the following cash flows is 8 percent compounded quarterly.…

A: Cash flows are the cash components and cash equivalents which are being transferred in and out of…

Q: Compute for the following. Given the uneven streams of cash flows shown in the following table,…

A: The present discounted value (PDV) is an estimate of the total amount of money received over a…

Q: For each of the following annuities, calculate the annual cash flow. intermediate calculations and…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear…

A: Present Value = 100,000 N = 8 years Future Value = 341,655.49 Real Rate = 10%

Q: Investment X offers to pay you $4,700 per year for 9 years, whereas Investment Y offers to pay you…

A: Present value is calculated by discounting the future cash flows with appropriate discount rate. The…

Q: DIRECTIONS: Solve the following problems neatly and legibly. Draw the necessary cash flow diagrams.…

A: Present value is the present worth of any sum of money to be received in the future at a specified…

Q: Given the following cash flow, what is the payback period? Time Cash Flow -$670,850 |1 310,020 2…

A: Using the cumulative table in excel

Q: For each of the following annuities, calculate the annual cash flow. (Enter rounded anware…

A: We can find the annual payment using PMT function of excel. The PMT function works with following…

Q: Consider the following cash flows: Year Cash Flow 32,000 1 13,700 18,000 11,100 a. What is the NPV…

A: Net Present value is present value of cash flow minus initial investment

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: What is the present value of the following cash flows, if the discount rate is 10% annually?…

A: The present value of the cash flow can be calculated by taking the future cash flows and discounting…

Q: for Econco is expected to be $100 at Year 1 (which is one year from today). $125 at Year 2, and $150…

A: We need to use present value formula here  Present value =Future Value/(1+Discount  rate)number of…

Q: What is the value in year 15 of a $260 cash flow made in year 4 if interest rates are 12 percent?…

A: Future value can be defined as the monetary value of an asset on an individual date in future…

Q: Different cash flow.   Given the following cash​ inflow, what is the present value of this cash flow…

A: Present Value refers to the current value of all the cash flows which is to be received in the…

Q: If you put up $55.000 1oday in exchange for a 6.5 percent, 16-year annulty. whal wil the annual cash…

A: The given problem can be solved using PMT function in excel. PMT function computes savings/…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.