In: Finance

What is $100 today, plus $100 at the end of 1 year, plus $200 at the end of 2 years, plus $300 at the end of 3 years, worth to you today, given a discount rate of 4%

What is $100 today, plus $100 at the end of 1 year, plus $200 at
the end of 2 years, plus $300 at the end of 3 years, worth to you
**at the end of year 3**, given a discount rate of
4%?

Amount worth today= $647.76

Amount worth at the end of 3 years= $728.65

Calculations as below.

True or False?
16
Year-end #1: Sales 200 with Cash 100 = + long-term debt 100 +
capital stock 100 + opening retained earnings 0 + net income 50 +
accounts payable 100 – accounts receivable 100 – inventory 50 -
fixed assets 100.
Year-end #2: Sales 400 with Cash 100 = + long-term debt 200 +
capital stock 100 + opening retained earnings 50 + net income 50 +
accounts payable 200 – accounts receivable 100 – inventory 100...

1. What is the future value at the end of year 18 of $10,000 deposited today into an account that pays interest of 4.5% p.a., but with daily compounding (assume 365 days per year)?
2. Ellie is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $11,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Ellie believes that...

An investor invests $500. The investment pays $100 at the end of
year 2, $200 at the end of year 3 and $300 at the end of year
4.
Calculate the net present value (NPV) of the investment using
interest preference rate of 5.7%.
----------------------------------------------
I got
v = 1/1.12
So would it just be NPV = -500 + 100(v)^2 + 200v^3 + 300v^4?

$100 is received at the beginning of year 1, $200 is received
at the beginning of year 2, and $300 is received at the beginning
of year 3. If these cash flows are invested at 12 percent, what
will their future value be at the end of year 3?What is the present value of a $25,000 perpetuity be if the
discount rate (required rate of return) is 14 percent? (HINT: Excel
does not have a built-in formula for perpetuity. You...

An investment will pay $100 at the end of each of the next 3
years, $200 at the end of Year 4, $300 at the end of Year 5, and
$500 at the end of Year 6. If other investments of equal risk earn
6% annually, what its future value? Do not round intermediate
calculations. Round your answers to the nearest cent.

what is the approximate future value of $100 to be received in
one year, $200 in two years, and $300 in three years, a 5% annual
interest?

A project will cost $1,000 today and will pay back $100 one year
from today (t=1), $200 two years from today (t=2), $500 three years
from today (t=3) and $1,000 four years from today (t=4). If the
required rate of return is 7%, answer question Q1 to Q5.
Q1: What is the present value of the future cashflow?
a)1578.62
b)1439.19
c)1374.25
d)1664.83
Q2: What is the NPV of the project
a)439.19
b)1439.19
c)578.62
d)1374.25
Q3: What is the IRR of...

Investment will pay $100 at the end of each of the
next 3 years 200 at the end of year 4 350 at the end of yearr 5 and
550 at the end of year 6 if other investments of equal risk earn 4%
annually what is its present value Round your answer to the nearest
cents.

Consider a bank account where you make deposits of $100 at year
1, $200 at year 5, and $200 at year 9. You do not remember the
offered compound interest rate, but you know that the balance of
your account right after the deposit at year 9 was twice the
balance right after the deposit at year 5. Find the first time (in
years) that the balance on your account reaches $1,000

Jeff deposits $100 into a fund today and $200 into the same fund
15 years later. Interest for the first 10 years is credited at a
nominal discount rate of d compounded quarterly, and thereafter at
a nominal interest rate of 6% compounded semiannually. The
accumulated value in the fund at the end of 30 years is $1000.
Calculate d.

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