Answered: What is the value in year 15 of a $260…

What is the value in year 15 of a $260 cash flow made in year 4 if interest rates are 12 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

See similar textbooks

Related questions

Q: Refer to the following cash flow diagram. If / 12% per year, what is P, when N- o0? 1234 EOY P A…

A: When N = Infinite, we are dealing with perpetuity

Q: The present value of the following cash flow stream is $8,650 when discounted at 9.5 percent…

A: Given: Present Value of Cash flow =$8650 Present value of Cash flow =$2250×PVF(9.5%,1 Year)+Cash…

Q: a. What is the approximate probability that your money will double in value in a single year? (Do…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: If $25,000 is deposited in a 5% savings account and inflation is 3%, what is the value of the…

A: Given information : Deposited amount = $25,000 Interest rate on savings = 5% Inflation rate = 3%…

Q: Consider the following cash flows: Year Cash Flow -$4,800 1,400 2,500 1,200 900 What is the payback…

A: pay back period is the number of years, it will take to recover the initial investment made in a…

Q: Required information As indicated, some of the cash flows are expressed in future (then-current)…

A: Given : Real interest rate = 10% Inflation rate = 6% Working Note #1 Calculation of inflation…

Q: What is present value of the cash flow at the end of years 1 the cash flow is $1000 and $2000at the…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

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: consider the following cash flow diagram: Date $500 -$500 Cash flow If the current interest rate is…

A: Cash flow at year 1 should be equivalent to sum of values of other cash flows at year 1.

Q: What is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand…

A: The value received by an individual today is of more worth than that of receiving the exact amount…

Q: If interest is 7% compounded annually, calculate the present value of four year cash flows of…

A: Net present value is the sum of present value of future cashflows

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 two cash flow transactions shown in the accompanying cash flow diagram are said to be equivalent…

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

Q: Different cash flow. Given the following cash inflow at the end of each year, . what is the future…

A: Given Information: Interest rates are 5%, 11% and 15% Cash flows for year 1 is 15,000, year 2 is…

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

A: Given:

Q: What single payment at the beginning of year 2 is equivalent to an equal annual series of payments…

A: First payment is made at the end of Year 3 and will be made till Year 8. Hence, a total of 6 payment…

Q: 4. A set of cash flows are given in the table below. Using the principles of equivalence, determine…

A: As per principle of equivalence ,to calculate cash flow from year 5 to year 10 in this question we…

Q: Mr. Zigong wishes to know about the future values of the single cash flow deposited today that will…

A: The value of a cash flow deposited today and to be received in the future can be calculated using…

Q: Suppose you receive cashflows of $10 at year 1, $12 at year 2, $14 at year 3 and $16 at year 4. What…

A: Solution:- Value of cash flows at year 2 = Future value of year 1 cash flow for 1 year + Year 2 cash…

Q: Given the following cash flows, what is the future value at year ten when compounded at an interest…

A: Future Value is the value of current investments at a certain future date at the assumed…

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: Consider the following cash flows: Year Cash Flow 2 $ 22,800 3 40,800 5 58,800…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: olur? 06:031370160 i= %7.8 -%3,9 2 3 A=500 TL/yıl 2511 2887 2200 2776

A: Cash Outflows: Year Cash Flow 0 -500 1 -500 2 -500 3 -500 4 -500 Annual Interest…

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…

Q: Assume the appropriate discount rate for the following cash flows is 10.2 percent. Year…

A: Compute the present value of the given cash flows:

Q: Draw a cash flow diagram given the following data and determine the values of P and F. Length of…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: What is the value in year 5 of a $740 cash flow made in year 7 if interest rates are 9 percent? (Do…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: For the cash flows shown, the equivalent annual worth in periods 1 through 5 at an interest rate of…

A: Interest Rate = 10% Cash Flows: Year Cash Flow 0 1000 1 1000 2 1000 3 1000 4 1000 5…

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Annual interest rate = 8% Quarterly interest rate = 8%/4 = 2% Number of quarterly deposits = 8

Q: What is the value in year 4 of a $710 cash flow made in year 6 if interest rates are 9 percent? ( do…

A: We need to compute the present value of an amount 2 years prior to the cash flow. It can be…

Q: What is the present equivalent (at EOY 0) of the following cash-flows if the annual interest rate is…

A: The present value of cash flow is the present worth of cash to be received or paid in the future.…

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 532,000 14,200 17,500 11,600 What is the IRR of…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: What is the future value (as at year 4) of the following cash flows, given an interest rate of 5%…

A: Future value = Present value*(1+rate)^years

Q: What is the present value of end-of-year cash flows of $9,000 per year, with the first cash flow…

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

Q: Consider the following cash flows: Year Cash Flow -$6,600 1,900 3,900 1,700 1,400 What is the…

A: Year Cash flows Cumulative Cash flows 0 (6600) (6600) 1 1900 (4700) 2 3900 (800) 3 1700 900…

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 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…

Q: equivalent worth for the annual cash flow series at an interest rate of 10% per year compounded…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

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

Q: Compute the present value of a $2,000 deposit in year 1, and another $1,500 deposit at the end of…

A: Deposit in year 1= $2000 Deposit in year 3 = $1500 Interest rate = 10%

Q: hat is the future value (as at year 3) of the following cash flows, given an interest rate of 5%…

A: In this question net present value is to be find out. All the cash flows are given just need to find…

Q: The appropriate discount rate for the following cash flows is 8.5 percent compounded quarterly. Year…

A: Given:

Concept explainers

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.

Question

What is the value in year 15 of a $260 cash flow made in year 4 if interest rates are 12 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
(1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?
What is the value in year 11 of a $2,100 cash flow made in year 3 if interest rates are 8 percent?
What is the present value of a perpetuity of $8,447 per year given an interest rate of 8.2%, assuming that the first cash flow occurs today (that is, in year 0)? Record your answer as a dollar amount rounded to 2 decimal places , but do not include a dollar sign or any commas in your answer . For example , enter $ 12,327.24987 as 12327.25 .
What is the future value at the end of year three of the following set of cash flows at an interest rate of 12% p.a. compounded annually? End of Year 1 $150 End of Year 2 $300 End of Year 3 $500 Select one: a. $1,204.61 b. $1,402.16 c. $1,024.16 d. $950.00
Solve the following and draw the cash flow diagram What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $21618 is made at the end of year 11, and subsequent withdrawals increase at the rate of 10% per year over the previous year’s, if the interest rate is 10%, compounded annually? Interest rate should be rounded of by 5 decimal places and final answer to 2 decimal places Note: Do not use excel
Need answers ASAP... If P100 is deposited in a savings account that pays 6% annual interest, what amount has accumulated by the end of the eighth year? How much of this is interest and how much is principal? Draw the cash flow diagram.
Suppose you invest $1,500 in an account paying 6% interest per year. How much of this balance corresponds to interest on interest earned in the last (7th) period? (Dollar figures should be approximated to the nearest cent of a dollar, while rates should be expressed in percentage terms without using the "%" symbol and approximated to the nearest second decimal place.)
Consider the following cash flows: Year Cash Flow 2 $ 22,900 3 40,900 5 58,900 Assume an interest rate of 9.7 percent per year. a. If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Troy will receive $8678 at the end of Year 2. At the end of the following two years, he will receive $8260 and $2665, respectively. What is the future value of these cash flows at the end of Year 6 if the interest rate is 4 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Assume the appropriate discount rate for the following cash flows is 10.2 percent. Year Cash Flow 1 $2,100 2 2,000 3 1,700 4 1,500 What is the present value of the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)