What is the present value of a stream of $800 cash payments, each to be made at the end of the next four years, with 10% annual compounding interest rate? Group of answer choices $4,084.08 $3,712.80 $2,789.48 $2,535.89

Q: Determine the present value of a financial instrument that pays $18,500 in 10 years if instruments…

A: Present Value: It refers to the real value or worth of any asset or project. It determines the fair…

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A: Net Present Value: It is the present worth of the annual cash flows and the initial cost of the…

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Q: Present Value of Amounts Due Assume that you are going to receive $260,000 in 10 years. The current…

A: Formula: Present value = Future value x PV factor. Future value gets multiplied with PV factor to…

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A: Future value of a present value is the value of that amount after taking into account the time value…

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A: Annual cash receipts (C) = $ 800 Number of annual cash receipts (n) = 4 Annual interest rate (r) =…

Q: 1. The following are exercises in future (terminal) values: a. At the end of three years, how much…

A:

Q: Use the following table for this questio Present value of an Annuity of $1   Periods…

A: Net present value(NPV) is the difference between present value of all cash inflows and initial…

Q: single

A: Formulas: Part 1: FV = PV(1+r)^?n Part 2: PV = FV/(1+r)^n Part 3: FV = C*[(1+i)^n - 1]…

Q: For what interest rate will an uniform cash flow of $40,000 per year for 10 years, (t=1 to 10) be…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

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

Q: 5. Find the present worth of a future payment of 100,000 to be made in 10 years with an interest of…

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Q: annual cash flow f

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A: 1.                                                  Computation of present value of annuity Year…

Q: onsider the following cash flows:   Year Cash Flow 2   $ 22,900   3     40,900   5     58,900…

A: The value of the cash flow after a particular time period with the addition of the interest amount…

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A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: What is the present value of $1,552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6…

A: Compute present value of $1,552.90 due in 10 years at 12% discount rate as shown below:

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A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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A: Future value =Present value *(1+rateper period)^n Where, n = no. of compounding period

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A: Present value: Present value is the future cash flow at a specific discount rate. The time value…

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A: a. PV = FV / (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest…

Q: What is the present value of $1,552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6…

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A: Cash flow: It denotes to the sum of cash that keeps flowing in the business and out of business…

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A: Solution a:   Amount PV Factor Present Value First Year $170,000.00 0.94787 $161,138 Second…

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Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…

A: Present Value represents the present worth of the investment. This can be computed by using Excel…

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A: Formula: Present value of Amount = yearly Amount x PV factor  Multiplying yearly amounts with PV…

Q: What is the future value of a stream of $800 cash receipts, each to be received at the beginning of…

A: Given data; payment amount = $800 interest rate = 10% number of years = 4

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A:

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A: Given information: Annual amount is $320,000 Interest rate is 6% Number of years is 4

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.