You have cash flows of $100 at the end of year 1, $200 at the end of years 2 and 3, and $300 at the end of years 4 and 5. Assume the interest rate is 10% for all periods. What is the present value of all five cash flows at the end of year 3?

The problem requires the determination of the present value of the cash flows using discounting and…

Answered: You have cash flows of $100 at the end…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 29P

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Similar questions

Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)
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.
An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second year. What is the payback period? a. 1.67 years b. 0.50 year c. 2.00 years d. 1.20 years e. Cannot be determined
You will be receiving cash flows of: $2,000 today, $2,000 at the end of year 1, $3,000 at the end of year 3, and $6,000 at the end of year 5. What is the net present value of these cash flows at an interest rate of 4%?
Suppose you expect to receive the following future cash flows at the end of the years indicated. $2300 in year 2, $5200 in year 4, $2600 in year 5, and $8000 in year 9. If the interest rate is 13% per year. What is the value of all the four flows at year 3?
For the cash flows below determine the amount in year 1, if the annual worth in years 1 through 9 is $3500 and the interest rate is 10% per year
What is the present value of the following sets of cash flows, discounted at 10% per year? Year 1 with cash flow of 10, Year 2 with cash flow of 20, Year 3 with cash flow of 30, year 4 with cash flow of 40 and year 5 with cash flow of 50?
At a rate of 9%, what is the present value of the following cash flow stream? $0 at Time 0; $1,000 at the end of Year 1; $3,000 at the end of Year 2; $0 at the end of Year 3; and $5,000 at the end of Year 4?
What is the future value at the end of year three of the following set of cash flows at an interest rate of 10% p.a. compounded annually? End of Year 1 $5,100 End of Year 2 $2,300 End of Year 3 $1,150 Select one: a. $8,550 b. $9,966 c. $9,851 d. $9,581
What is the present worth of cash flows that begin at $10,000 and increase at 8% per year when N is 4 years? The interest rate is 6%.
A set of cash flows begins at $15,000 the first year, with an increase each year until n = 12 years. If the interest rate is 8%, what is the present value when (a) the annual increase is $1000? (b) the annual increase is 8%?
What is the present value of the following set of cash flows at an interest rate of 6% p.a. compounded annually? End of Year 1 $2,200 End of Year 2 $5,100 End of Year 3 $1,150 Select one: a. $7,580.01 b. $8,450.00 c. $7,850.01 d. $5,880.35

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