Question

In: Finance

Find the future value of the following cash flow stream at a rate of 5%: Year...

Find the future value of the following cash flow stream at a rate of 5%: Year 0: $0, Year 1: $400, Year 2 $300, Year 3 $250.

Solutions

Expert Solution

Discount rate 5.0000%
Cash flows Year Discounted CF= cash flows/(1+rate)^year Cumulative cash flow
                               -   0                                            -                                           -  
                   400.000 1                                   380.95                                380.95
                   300.000 2                                   272.11                             653.061
                   250.000 3                                   215.96                                869.02

Present value = 869.02

future value = 869.02 * 1.05^3 = 1006.00


Related Solutions

What is the present value and future value of the following cash flow stream at a...
What is the present value and future value of the following cash flow stream at a rate of 8.00%? Years: 0 1 2 3 4 CFs: $0 $75 $225 $0 $500
1. Find the present value of the following cash flow stream with an interest rate of...
1. Find the present value of the following cash flow stream with an interest rate of 7%: Year 1 = $2,000 Year 2 = $4,000 Year 3 = $1,000 Year 4 = $6,000 2. Find the present value of the following ordinary annuity: $800 per year for 10 years at 6% 3. If you invest $5,000 in an investment which has an annual return of 10% but compounds every 6 months (instead of yearly), how much will it have after...
Find the present value of the following cash flow stream if the discount rate is 7.17%:...
Find the present value of the following cash flow stream if the discount rate is 7.17%: CF1 = 24, CF2 = 41, CF3 = 51, CF4 = 69. The cash flows are received at the end of each year. Round to the nearest $0.01 (e.g., if your answer is $175.386, record it as 175.39).
Find the present value of the following cash flow stream assuming a discount rate of 8%:...
Find the present value of the following cash flow stream assuming a discount rate of 8%: A payment of $10,000 received at the end of each MONTH over the coming 4 years, followed by a payment of $5000 received at the end of each MONTH over the 6 years after that. a.) $556,975.15 b.) $409,619.13 c.) $285,172.61 d.) $207,297.84 e.) $616,916.97
1. Find the present value as of year 0 of the following cash-flow stream if investments...
1. Find the present value as of year 0 of the following cash-flow stream if investments of similar risk are yielding 8% Year​​ Cash Flow 0 through 14 ​​ $8,000 per year in each of those years 2. Find the present value as of year 0 of the following cashflow stream if investments of similar risk are yielding 8.25% Year ​​ Cash Flow 6 through 28​ ​$8,000 per year in each of those years
8. Calculate the Future Value of the following cash flow stream. Assume that 12.50% is the...
8. Calculate the Future Value of the following cash flow stream. Assume that 12.50% is the appropriate rate. Year Cash Flow 1-5 $2,000 6-12 4,000 13 10,000 14-20 13,000 21-25 16,000
What is the present value of the following cash flow stream at a rate of 3.0%...
What is the present value of the following cash flow stream at a rate of 3.0% per year? Year 0: $0, Year 1: $75, Year 2: $225, Year 3: $0, Year 4: $300
What is the present value of the following cash flow stream at a rate of 7.0%...
What is the present value of the following cash flow stream at a rate of 7.0% per year? cash flow stream : 0=0$ 1=$75 2=$225 3=$0 4=$300 years and CF'S
What is the Net Present Value of the following cash flow stream? Year Cash Flow 0...
What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 -$489 1 $363 2 $192 3 $161 4 $256 Assume an interest rate of 13% Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. If your answer is negative, enter your answer as a negative number rounded off to two decimal points.
Assume that 17.00 % is the appropriate rate for the following cash flow stream. Year Cash...
Assume that 17.00 % is the appropriate rate for the following cash flow stream. Year Cash Flow ($) 1 3,000 2-11 4,000 12-25 6,000 26-40 10,000 1. What is the Present Value of the cash flows? 2. What is the Future Value of the cash flows? Round your answer to the nearest dollar and do NOT enter a dollar sign.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT