What are the PW and FW of a 20-year geometric cash-flow progression increasing at 2% per year if the first year amount is $1,020 and the interest rate is 10% per year?

Q: The present worth of of P40,000 in the first year and amounts of increasing by P3,000 per year…

A: Here, Initial cash flow = P40,000 Increase in amount per year through five years = P3,000 Rate of…

Q: what is the future value of cash flow of ¢2,000.00 for the first month and a monthly rise of 0.1%…

A: 1st deposit =2000 Increase per month = 0.1% = 0.001 Increase Factor(r) = 1+0.001 = 1.001 Number of…

Q: Determine the present value in year zero of a gradient series that begins with a cash flow of $7,000…

A: Interest rate = 8% Cash flow in year 5 = $7000 Annual increase in cash flow = 8%

Q: What is the present value of end-of-year cash flows of $1,000 per year, with the first cash flow…

A: Present value (PV) is the worth of amount today that is expected to be received in future at…

Q: A set of cash flows begins at $60,000 and increases at 10% per annum for the next 12 years. If the…

A: Begining Cash flow is $60,000 Cash flow growth rate is 10% per annum Time Period is 12 Years…

Q: Suppose that starting a year from now you will receive $720 a year at the end of every year. If the…

A: In this question we need to calculate the Present value of perpetuity i.e. stream of cash flows…

Q: Suppose  you expect to receive the following future cash flows at the end of the years indicated.…

A: Future value- Year       FV 2          $2300 4          $5200 5          $2600 9          $8000…

Q: Suppose that starting one year from now you will receive $560 a year at the end of every year. If…

A: Present value of perpetuity = perpetuity amount / discount rate

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: c. A series of quarterly payments of $1000 for 25 years is economically equivalent to what present…

A: Quarterly Interest Rate = Annual Rate / 4 Quarters = 8% / 4 = 2%.Number of Quarters in 25 Years = 25…

Q: Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of…

A: Future Value of annuity due is the annuity in which payment is made at the beginning of the period…

Q: What is the present value of a cash flow stream of $1,000 per year annually for 11 years that then…

A: Cash flow at end of 11 years = Cash flow of 11th year * (1+growth rate)/ discount rate - growth rate…

Q: worth of a ten year geometric gradient series of cash flows was found to be $100,000. If the…

A: Future value of growing annuity can be found out from the growth rate and interest rate and period…

Q: A cash-flow series is increasing geometrically at the rate of 8% per year. The initial payment at…

A: Computation:

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is…

A: The future worth of the single of a single cash flow is calculated by the following formula. Here,…

Q: Calculate the present worth of a geometric gradient series with a cash flow of 60,000 pesos in year…

A: Present Worth: The notion of present value asserts that a sum of money is worth more now than it…

Q: What is the present value of 24 monthly cashflows of $420 each starting today if the interest rate…

A: Using excel PV function, This is question of annuity due since cashflow starting today

Q: A set of cash flows begins at $20,000 the first year, with an increase each year until n = 10 years.…

A: Information provided: Initial cashflow = $20,000 n = 10 years interest rate = 8%   Present value =…

Q: What is the present value of the following cash-flow stream if the interest rate is 12%? You receive…

A: In the given question we require to calculate the present value of the stream of cashflows.

Q: Consider the following EOY geometric sequence of cash flows and determine the P, A, and F equivalent…

A: The present value of the cash flow is the current worth of the cash flow at a certain rate of…

Q: A sum of $10,000 now (time 0) is equivalent to the following cash flow diagram. What is the value of…

A: Initial investment (I) = $10000 i = 5% Present value of cashflows should be equal to $10000

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is…

A: Present worth is the sum total of present values of all future cash flows. It is calculated as…

Q: What is the present value of a perpetual stream of cash flows that pays $2,500 at the end of year…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: A firm expects to make payments of 1.1, 1.5, 1.2, 1.4 and 1.9 million for a particular supply over…

A: Solution:- Present value means the value in today’s terms after discounting the future cash flows to…

Q: With a present value of $125,000, what is the size of the withdrawals that can be made at the end of…

A: Working note:

Q: A set of cash flows begins at $80,000 the first year, with an increase each year until n = 10 years.…

A: Present Value(PV) is current value of any amount that is to be paid or received in future. It is…

Q: A cash flow series is increasing geometrically at the rate of 6% per year. The initial cash flow at…

A: Computation:

Q: Find the present worth of cash flows of $1000 that start now (time 0) and continue through year 10,…

A: Present Value:  The present value (PV) is the present sum of a series of fixed payments. The series…

Q: What is the present value of a perpetual stream of cash flows that pays $5, 000 at the end of year…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: i) If a continuous investment of $5,600 per year for 29 years leads to the accumulation of $500,000…

A: i) Annual investment (A) = $5600 n = 29 years Accumulated value = $500000 Let r = Continuously…

Q: For a present sum of $620,000, determine the annual worth (in then-current dollars) in years 1…

A: Present sum = 620000 i = 12% inflation rate = 5% n=7 years PW = 620000(A/P,12%,7) =620000(0.2191177)…

Q: Consider an EOY geometric sequence of cash flows in which the first payment made was P2,000. This is…

A: Annuity refers to a constant stream of payments made at regular intervals for a defined period. The…

Q: What constant annual payment is this equivalent to if the annual rate is 10%?

A: Equivalent Annual Payment: It computes the constant annual cash flow produced by a project over its…

Q: What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of year…

A: Year 1 cash flow (CF1) = $80,000 Growth rate (g) = 0.06 Interest rate (r) = 0.10 Present value = ?

Q: Consider two streams of cash flows, A and B. Stream A is expected to have three cash [5] flows at…

A: In order to decide which streams of income would be preferable, one need to calculate the present…

Q: The rate of return on an investment of $1500 that doubles in value over a 4-year period, and…

A: We will use the NPER formula in excel =NPER(rate, pmt,pv,-fv,type) where NPER is the number of…

Q: What is the present value of the expected cash flows for the next 10 years if the interest rate is…

A: Present value of growing annuity refers to the value of series of periodic payments in today's terms…

Q: The rate of return on an investment of $1500 that doubles in value over a 4-year period, and…

A: We will use the NPER formula in excel =NPER(rate, pmt,pv,-fv,type) where NPER is the number of…

Q: What is the present value of end-of-year cash flows of 1000 per year, with the first cash flow…

A: Present value is the sum of discounted future cashflow

Q: A geometric gradient that increases at ? = 6% per year for 15 years is shown in the accompanying…

A: It is given that:P = $500 Growth g- 6% Interest r- 12% Time n – 15 yrs

Q: A set of cash flows begins at $25,000 the first year, decreasing 10% each year until n = 10 years.…

A: The present value is the sum of cashflows discounted at given discount rate

Q: Consider two streams of cash flows, A and B. Stream A is expected to have three cash flows at the…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: present value

A: Present Value is the computed amount today of either a single sum amount or a series of payments to…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.