Assume that the interest rate is 8.5% per year and you expect to receive the following stream of annual cash flows (The year 0 cash flow occurs today and the year 4 cash flow occurs exactly 4 years from today): (Year 0: $15,100); (Year 1: $21,100); (Year 2: $12,700): (Year 3: $19,250): (Year 4: $9,550); What is the current Present Value (PVO) of the stream of cash flows?" a)"$68,013- b)"$67,297" c)"$77,700 d)"$62,025" e)$64,399 f)$68,643"
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- ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? 4 5 6 27 28 29 C. Suppose you invest St $ 570 monthly. What is the future value of the investment in 29 years, if interest at 5% is compounded monthly? Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A W +What is the present value of the following cash-flow stream if the interest rate is 4%? Year 1: $170; 2: $370; 3:$270Suppose 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?
- Assume that time is measured in years and that interest rates are constant. A cashflow of amount £1000 is paid each year, with the first payment made at time 1 and the last payment made at time 20. Using a constant effective interest rate of 3% per annum, calculate the present value at time 0 of the cashflows.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.)2. Suppose you expect to receive the following future cash flows at the end of the years indicated: GHC 1800 in year 2, GHC 4200 in year 4, GHC 2,700 in year 5, and GHC 9000 in year 9. If the interest rate is 9% per year, what is the value of the four flows at year 3?
- 1. Consider the following cash flow payments: An income of $2000 at the end of year 2, an income of $5000 at the end of year 4, an expense of $3000 at the end of year 8, and a final income of $4000 at the end of year 10. • Draw the cash flow diagram for the cash flow payments. • Write an expression: what is the present equivalent value of these payments over the 10-year period assuming an interest rate of 10% per year.. Just write down the expression like "e.g. P = 1,000 (P/F, 4%, 10) + 2,500 (P/A, 4%, 5) -4,000". You don't need to calculate the final numerical answer. (Hint: you can write out the present equivalent value for each cash flow, and then sum them up.)Calculate the present value at t=0 (now) of the following cash flows: D. $100 every 3 years forever, with the first payment at t=3 (t counts years), where the effective annual rate is .05 (i.e. 5%) E. $1000 every 3 years forever, with the first payment at t = 3 (t counts years), where the effective annual rate is .05 (i.e., 5%). F. $1000 every 3 years forever, with the first payment at t = 3 (t counts years), where the effective annual rate is .10 (i.e., 10%).1. Consider the following cash flow payments: An income of $2000 at the end of year 2, an income of $5000 at the end of year 4, an expense of $3000 at the end of year 8, and a final income of $4000 at the end of year 10. (a) Draw the cash flow diagram for the cash flow payments. (b) Write an expression: what is the present equivalent value of these payments over the 10-year period assuming an interest rate of 10% per year. Just write down the expression like "e.g. P = 1,000 (P/F, 4%, 10) + 2,500 (P/A, 4%, 5)-4,000". You don't need to calculate the final numerical answer. (Hint: you can write out the present equivalent value for each cash flow, and then sum them up.)
- Answer the following questions: 1) Consider the following cash flow: You will receive $500 at the end of years 3 and 4 and $1,000 at the end of year 5. If the interest rate is 7%, what amount received at the present is equivalent to this cash flow? 2) Given the cash flow in the figure below, and i=10% per year. Find V4 (or equivalent worth at n=4) $200 $150 $120 $100 $100 $80 Years 6. 3. 5 Base period 3) Given the cash flow in the figure below, and i=8% per year. Find V3, V4 and V5 (or equivalent worth at third, fourth and fifth year) Rs 500 Rs 400 Rs 300 Rs 200 Rs 80 Rs 80 Rs 40 Years 1 Base period 4) If you want to receive 100,000 $ after 5 years from your bank account, what is the amount that you have to deposit now, if the bank gives 10% interest accumulated annually? 5) A person deposits $5000 now in an account at 14% compounded annually. He wants to withdraw the money when it becomes $ 20,000. How long time will he wait for?Suppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11 percent per year. Requirement 1: What is the present value of the payments if they are in the form of an ordinary (a)annuity (cash flow starts at the end of the first compounding period)? (Click to select) (b) What is the present value if the payments are an annuity due (cash flow starts at the beginning of the first compounding period)? (Click to select) Requirement 2: (a)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an ordinary annuity? (Click to select) (b)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an annuity due? (Click to select)Find the value of x that makes the equivalent annual worth in years 1 through 10 equal to $800 per year. Use an interest rate of 10% per year. The cash flows in year 0 and year 10 has an unknown value x, and 1 through 9 has an annual worth of $800. The value of x is determined to be $.....