Question
In: Finance
Inputs: Use 2 inputs: cash flow vector, interest rate. Use values: cash flow = (-10, 2,...
Inputs: Use 2 inputs: cash flow vector, interest rate. Use values: cash flow = (-10, 2, 4, 5, 9, 6), interest rate = 12%. Assume that cash flows start at t=0 and go on year by year.
Output: Produce a table containing years, cash flows, PV of cash flows, and a summary with NPV, PI, and Payback.
(Rstudio)
Solutions
Expert Solution
| Year | Cash flows | PV of CF | Cumulative CF |
| 0 | -10 | -10 | -10 |
| 1 | 2 | 1.785714 | -8 |
| 2 | 4 | 3.188776 | -4 |
| 3 | 5 | 3.558901 | 1 |
| 4 | 9 | 5.719663 | 10 |
| 5 | 6 | 3.404561 | 16 |
| NPV | 7.66 |
| PI | 1.77 |
| Payback | 2.80 |
WORKINGS
jeff jeffy answered 2 weeks agoRelated Solutions
Consider the 2 cash flow options below at an interest rate of 10% A B Initial...
Consider the 2 cash flow options below at an interest rate of
10%
A
B
Initial Cost
100,000
120,000
Year Cost 1
1000
1500
Year Cost 2
1400
1800
Year Cost 3
1800
2100
Year Cost 4
2200
2400
Year Cost 5
2600
2700
Year Cost 6
3000
3000
Year Cost 7
3400
3300
Year Cost 8
3800
3600
Year Cost 9
4200
3900
Year Cost 10
4600
4200
Year Cost 11
5000
4500
Year Cost 12
5400
4800
Year...
Find the present values of the following cash flow streams. The appropriate interest rate is 12%....
Find the present values of the following cash flow streams. The
appropriate interest rate is 12%. (Hint: It is fairly easy
to work this problem dealing with the individual cash flows.
However, if you have a financial calculator, read the section of
the manual that describes how to enter cash flows such as the ones
in this problem. This will take a little time, but the investment
will pay huge dividends throughout the course. Note that, when
working with the...
Find the present values of the following cash flow streams. The appropriate interest rate is 12%....
Find the present values of the following cash flow streams.
The appropriate interest rate is 12%. (Hint: It is fairly easy to
work this problem dealing with the individual cash flows. However,
if you have a financial calculator, read the section of the manual
that describes how to enter cash flows such as the ones in this
problem. This will take a little time, but the investment will pay
huge dividends throughout the course. Note that, when working with
the...
Find the present values of the following cash flow streams. The appropriate interest rate is 6%....
Find the present values of the following cash flow streams. The
appropriate interest rate is 6%. Round your answers to the nearest
cent. (Hint: It is fairly easy to work this problem dealing with
the individual cash flows. However, if you have a financial
calculator, read the section of the manual that describes how to
enter cash flows such as the ones in this problem. This will take a
little time, but the investment will pay huge dividends throughout
the...
Find the present values of the following cash flow streams. The appropriate interest rate is 12%....
Find the present values of the following cash flow streams. The
appropriate interest rate is 12%. (Hint: It is fairly easy
to work this problem dealing with the individual cash flows.
However, if you have a financial calculator, read the section of
the manual that describes how to enter cash flows such as the ones
in this problem. This will take a little time, but the investment
will pay huge dividends throughout the course. Note that, when
working with the...
Find the present values of the following cash flow streams at a 10% discount rate. Do...
Find the present values of the following cash flow streams at a
10% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$100
$350
$350
$350
$300
Stream B
$0
$300
$350
$350
$350
$100
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $ ...
For the below Cash Flow find PW using 10% interest rate. years $ cost 0 4,888...
For the below Cash Flow find PW using 10% interest rate.
years
$ cost
0
4,888
1
-
2
-
3
3,000.00
4
3,100.00
5
3,200.00
6
3,300.00
7
3,400.00
8
3,500.00
Use the following cash flow with a 5% discount rate: Year Cash Flow 0 -$ 80,000...
Use the following cash flow with a 5% discount rate:
Year Cash Flow
0 -$ 80,000
1 20,000
2 15,000
3 20,000
4 25,000
5 30,000
What is the NPV?
$ 9,154
-$2,567
$14,003
$10,036
How would an interest rate derivative be used to address the interest cash flow mismatch in...
How would an interest rate derivative be used to address the
interest cash flow mismatch in securitization consisting of fixed
rate loans in which floating rate securities are issued?
Problem 4-10 Present and Future Values of Single Cash Flows for Different Interest Rates Use both...
Problem 4-10
Present and Future Values of Single Cash Flows for Different
Interest Rates
Use both the TVM equations and a financial calculator to find
the following values. Round your answers to the nearest cent.
(Hint: Using a financial calculator, you can enter the
known values and then press the appropriate key to find the unknown
variable. Then, without clearing the TVM register, you can
"override" the variable that changes by simply entering a new value
for it and then...
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