1. You expect to receive $1,000 in one year, $2,000 in three years, and $1,500 in five years. Assume that the appropriate discount rate is 13%. a. Display these cash flows in a spreadsheet using the layout of a time line. Enter all period numbers (up to year 5) in one row, and the expected cash flows in the next row. b. What is the present value of these expected cash flows? Your answer should consist of one spreadsheet file with all your work in one worksheet. it should answer in excel file
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- What is the present value of the following stream of cash flows if the discount rate is 9%? Year 1-5: $14,000 inflow Years 6-20: $23,000 inflow (Use the present value tables in your course packet for any present value calculations. Round your final answer to the nearest dollar.)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.)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.)
- Find the value of the unknown quantity Z in the following diagram, such that the equivalent cash outflow equals the equivalent cash inflows when i= 18% per year, compounded semiannually. YcarsSolve, a. Calculate the IRR for each of the three cash-flow diagrams that follow. Use EOY zero for (i) and EOY four for (ii) and (iii) as the reference points in time. What can you conclude about “reference year shift” and “proportionality” issues of the IRR method? b. Calculate the PW at MARR=10 % per year at EOY zero for (i) and (ii) and EOY four for (ii) and (iii). How do the IRR and PW methods compare?Consider end-of-year cash flows for $8000, $15000, $22000, $29000, and $36000 for years 1 to 5. [ Select ) If the series of cash flows is to be split into a uniform series and a uniform gradient, what is the uniform annuity amount A? ( Select ) If the series of cash flows is to be split into a uniform series and a uniform gradient, what is the uniform gradient amount G? What is the uniform annual equivalent if the interest rate is 12% per year? [ Select ) ( Select ] What is the future equivalent if the interest rate is 12% per ycar? [ Select] What is the present equivalent if the interest rate is 12% per year?
- Consider end-of-year cash flows for $8000, $15000, $2200O, $29000, and $36000 for years 1 to 5. If the series of cash flows is to be split into a uniform series and a uniform gradient, what is the uniform [ Select ] annuity amount A? If the series of cash flows is to be split into a uniform series and a [ Select ] uniform gradient, what is the uniform gradient amount G? What is the uniform annual [ Select ] equivalent if the interest rate is 12% per year? What is the future equivalent if the [ Select ] interest rate is 12% per year? What is the present equivalent if the [ Select ] interest rate is 12% per year?Consider end-of-year cash flows for $8000, $15000, $22000, $29000, and $36000 for years 1 to 5. If the series of cash flows is to be split into a uniform [ Select ] series and a uniform gradient, what is the uniform annuity amount A? If the series of cash flows is to be split into a uniform [ Select ] series and a uniform gradient, what is the uniform gradient amount G? What is the uniform annual equivalent if the interest [ Select ] rate is 12% per year? What is the future equivalent if the interest rate is 12% [ Select ] per year? What is the present equivalent if the interest rate is 12% per year? [ Select ] > >Assume that the amount of initial investment is $350,000 and the scheduled receipts are $250,000 in the end of the first year and $200,000 in the end of the second year, respectively. Consider the DCF (Discounted Cash Flows) upon the discount rate of 8 percent p.a., then answer the NPV (net present value).
- Consider two streams of cash flows, A and B. Stream A's first cash flow is $10,000 and is received three years from today. Future cash flows in Stream A grow by 3 percent in perpetulty. Stream B's first cash flow is -$8,900, is received two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 11 percent. a. What is the present value of each stream? (A negative amount should be indicated by a minus sign. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Stream A Stream B b. Suppose that the two streams are combined into one project, called C. What is the IRR of Project C? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % c. What is the correct IRR rule for Project C? Accept the project if the discount rate is equal the IRR. O Accept the project if the discount rate is above the IRR. Accept the project if the discount rate is…For each of the following situations involving annulties, solve for the unknown. Assume that interest is compounded annually and that all annulty amounts are received at the end of each period. (/= Interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. 5. Present Value 248, 196 442,750 650,000 175,000 Annuity Amount $ 5,000 80,000 60,000 155,040 8% 11% 10% n = 5 4 10 4Consider the accompanying shown cash-flow diagram. Solve, a. If P = $1,000, A = $200, and i% = 12% per year, then N = ? b. If P = $1,000, A = $200, and N = 10 years, then i = ? c. If A = $200, i% = 12% per year, and N = 5 years, then P = ? d. If P = $1,000, i% = 12% per year, and N = 5 years, then A = ?