consider the following cash flows. year 2 22600$ year 3 40600$ year 5 58600$ assume an...

consider the following cash flows.
year 2 22600$
year 3 40600$
year 5 58600$
assume an interest rate of 9.4% per year.
if today is year 0 what is the future value of cash flows 5 years from now?

Solutions

Expert Solution

assuming cashflows recieved in year beinging

future value= present vlaue * (1+r)ⁿ

r=rate of interest

n= no of year

year	A.CASH FLOWS	year to maturity (n)	B.〖(1+?)〗^?	*C.future value (AB)**
2	22600	3	1.309	29591.05
3	40600	2	1.197	48591.54
5	58600	1	1.094	64108.40
	CASH FLOW FUTURE VALUE (SUM OF C)			142291

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Consider the following cash flows: Year Cash Flow 2 $ 22,000 3 40,000 5 58,000 Assume...

Consider the following cash flows: Year Cash Flow 2 $ 22,000 3 40,000 5 58,000 Assume an interest rate of 8.8 percent per year. 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.) Future value ? If today is Year 0, what is the future value of the cash flows ten years from now? (Do not...

Consider the following cash flows: Year 0 1 2 3 4 5 6 Cash Flow -$10,000...

Consider the following cash flows: Year 0 1 2 3 4 5 6 Cash Flow -$10,000 $2,200 $3,300 $2,500 $2,500 $2,300 $2,100 A. Payback The company requires all projects to payback within 3 years. Calculate the payback period. Should it be accepted or rejected? B. Discounted Payback Calculate the discounted payback using a discount rate of 10%. Should it be accepted or rejected? C. IRR Calculate the IRR for this project. Should it be accepted or rejected? D. NPV Calculate...

Consider cash flows for projects A and B Year: 0, 1, 2, 3, 4, 5 Project...

Consider cash flows for projects A and B Year: 0, 1, 2, 3, 4, 5 Project A: -$1000, 375, 375, 375, 375,-100 Project B: -$1000, 900, 700, 500, -200, 200 The cost of capital for both projects is 10% 1. Find the NPV and MIRR of projects A and B. If project A and B are mutually exclusive. 2. Find the crossover rate for projects A and B. 3. What is the profitability index for projects A and B? How...

Assume a corporation is expecting the following cash flows in the future: $-5 million in year...

Assume a corporation is expecting the following cash flows in the future: $-5 million in year 1, $8 million in year 2, $22 million in year 3. After year 3, the cash flows are expected to grow at a rate of 6% forever. The discount rate is 11%, the firm has debt totaling $41 million, and 10 million shares outstanding. What should be the price per share for this company? Enter your answer in dollars, rounded to the nearest cent.

Consider the following investment cash flows: Year Cash Flow 0 ($16,000) 1 3,000 2 4,000 3...

Consider the following investment cash flows: Year Cash Flow 0 ($16,000) 1 3,000 2 4,000 3 5,000 4 6,000 5 7,000 a. What is the return expected on this investment measured in dollar terms if the opportunity cost is 6%. b. What is the return on this investment measured in percentage terms? c. Is the investment profitable? Explain your answer.

Use these cash flows to answer the following questions: Year 0 1 2 3 4 5...

Use these cash flows to answer the following questions: Year 0 1 2 3 4 5 6 A (4,000) 800 1,400 1,300 1,200 1,100 1,000 B (2,000) 700 1,300 1,200 0 0 0 a. Calculate the NPV for projects A and B using a 20 percent discount rate (write the calculate keys that you use to get the answer). b Calculate the Equivalent Annual Annuity (EAA) for projects A and B using a 20 percent discount rate (write the calculate...

Consider the following cash flows: Year Cash Flow 0 $-28,400 1 15,300 2...

Consider the following cash flows: Year Cash Flow 0 $-28,400 1 15,300 2 13,600 3 10,000 Requirement 1: What is the profitability index for the above set of cash flows if the relevant discount rate is 8 percent? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) Profitability index Requirement 2: What is the profitability index if the discount rate is 13 percent? (Do not round...

5. Assume a $200,000 investment and the following cash flows for two alternative capital projects: Year...

5. Assume a $200,000 investment and the following cash flows for two alternative capital projects: Year Project A Project B 1 $60,000 $40,000 2 90,000 70,000 3 50,000 80,000 4 40,000 20,000 a. Calculate the payback period for each project. b. Using the payback method, if the projects are mutually exclusive, which project would you select and why? c. If the year four cash flows were $100,000 for Project A and $500,000 for Project B, would your decision change under...

ou are given the following stream of cash flows: Year 1 Year 2 Year 3 Year...

ou are given the following stream of cash flows: Year 1 Year 2 Year 3 Year 4 Year 5 $100,000 $110,000 $120,000 $130,000 $140,000 A. If you thought the appropriate discount rate was 10%, what would be the present value of this cash flow stream today at t=0? B. If you thought the appropriate interest/discount rate was 10%, what would be the future value of this cash flow stream in five years at t=5 years?

Consider a project with the following cash flows: Year 0: -$1160 Year 1: $80 Year 2:...

Consider a project with the following cash flows: Year 0: -$1160 Year 1: $80 Year 2: -$270 Year 3: $580 Year 4: $2290 What is the MIRR of the project if the WACC is 13% and the financing costs are 2% ? Group of answer choices 22.23% 21.18% 23.27%

Subjects