Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Question
Chapter 15, Problem 24P
To determine
Compute the present value in the year 0 of the given cash flows.
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Find the present equivalent worth for the annual cash flow series at an interest rate of 10% per year compounded quarterly
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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
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Select one:
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$8,450.00
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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
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$8,550
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Chapter 15 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 15 - On what three things is equivalence based?Ch. 15 - Prob. 2DQCh. 15 - How do you find the interest rate at which two or...Ch. 15 - Prob. 4DQCh. 15 - How does inflation affect interest rates?Ch. 15 - Prob. 6DQCh. 15 - What is the future value, ten years from now, of...Ch. 15 - What is the future value, ten years from now, of...Ch. 15 - Prob. 9PCh. 15 - Prob. 10P
Ch. 15 - Prob. 11PCh. 15 - What is the future value, five years from now, of...Ch. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 19PCh. 15 - Prob. 20PCh. 15 - Prob. 21PCh. 15 - Determine the future value at the end of June for...Ch. 15 - Prob. 23PCh. 15 - Prob. 24PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - Prob. 27PCh. 15 - Prob. 28PCh. 15 - Prob. 29PCh. 15 - At what periodic interest rate is a 4,000 cash...Ch. 15 - Prob. 31PCh. 15 - Prob. 32PCh. 15 - Prob. 33PCh. 15 - Prob. 34PCh. 15 - How much money needs to be set aside today to...Ch. 15 - How much money needs to be set aside today to...
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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)arrow_forwardAn 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 determinedarrow_forwardCalculate the present value of the following stream of cash flows: cash flows of $7,000, quarterly for 7 years. Assume an interest rate (annual) of 12% (i.e. APR with quarterly compounding). Assume that the first cash flow occurs at t = 0. Show work for all parts requiring computation. Calculate the present value of the stream of cash flows. What is the EAR for the same APR of 12% (i.e. APR with quarterly compounding)?arrow_forward
- Determine the present worth of the following cash flows based on an interest rate of 7.23% per year, compounded annually. Round off to two decimal places. End of Year 0 = Php 5930 End of Year 1 = Php 5181 End of Year 2 = Php 5734 End of Year 3 = Php 5458 End of Year 4 = Php 5719 End of Year 5 = Php 5923arrow_forwardCompute the future worth of the following cash flows at (a) i = 3% per year, (b) i = 12% per year, if PW= $ 1581.48, compounded annually. Explain the results.arrow_forwardConsider the cash flow series shown below. Determine the required annual deposits (end of year) that will generate the cash flows from years 4 to 7. Assume the interest rate is 9%, compounded monthly.arrow_forward
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