3.Assumethatreceive$2,000 a year in Years 1 through 5,$3,000 a year in Years 6 through 8,and $4,000 in Year 9, with all cashflows to be received at the end ofyou willthe year.you require a 14percent rate of return, what is thepresent value of these cash flows?Ifa. $ 9,851b. $13,250$11,714$15,129$17,353Cd.e.

Introduction: Present Value of cash flows: It identifies today's value for the future cash flows or…

3. Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of the year.. If you require a 14 percent rate of return, what is the present value of these cash flows?

3. Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of the year.. If you require a 14 percent rate of return, what is the present value of these cash flows?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

3.
Assume
that
receive
$2,000 a year in Years 1 through 5,
$3,000 a year in Years 6 through 8,
and $4,000 in Year 9, with all cash
flows to be received at the end of
you will
the year.
you require a 14
percent rate of return, what is the
present value of these cash flows?
If
a. $ 9,851
b. $13,250
$11,714
$15,129
$17,353
C
d.
e.

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