Question
In: Finance
Present value For the case shown in the following table, calculate the present value of the...
Present value For the case shown in the following table, calculate the present value of the cash flow, discounting at the rate given,and assuming that the cash flow is received at the end of the period noted. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)
Single cash flow- $148,000
discount rate- 13%
end of period (years) - 7
Solutions
Expert Solution
PV = FV / (1 + r)^t
PV = $148,000 / (1 + 0.13)^7
pv = $62,908.98
jeff jeffy answered 2 years agoRelated Solutions
A. For each of the cases shown in the following table, calculate the present value of...
A. For each of the cases shown in the following table, calculate
the present value of the cash flow, discounting
the rate given and assuming that the cash flow is received at the
end of the period noted.
Case
Single cash flow ($)
Discount Rate (%)
End of Period
Present Value
A
37,000
12
9
B
25,000
10
12
C
200
5
20
D
40,000
9
10
E
4,500
5
20
B. For each of the cases shown in the...
Find the present value of the streams of cash flows shown in the following table. Assume...
Find the present value of the streams of cash flows shown in the
following table. Assume that the firm's opportunity cost is
14%.
a. The present value of stream A is $
b. The present value of stream B is $
c. The present value of stream C is $
A
B
C
Year
Cash Flow
Year
Cash Flow
Year
Cash Flow
1
−$2,100
1
$11,000
1−5
10,000/yr
2
$3,000
2−5
$5,100/yr
6−10
$7,900/yr
3
$4,100
6
$7,100
4
$6,100...
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually.
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
A
$500
8%
9
11%
B
1,000
13
20
11
C
500
15
5
16
The value of bond A, B, C is $?? (Round to the nearest
cent.)
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
A
$1,000
8
%
10
11
%
B
500
14
15
10
C
500
14
6
12
The value of bond A is
$nothing. ?
(Round to the nearest cent.)
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually. (
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
Copy to Clipboard
+
Open in Excel
+
A
$1 comma 0001,000
88
%
1111
99
%
B
500500
1212
2020
1111
C
100100
1414
44
1414
The value of bond A is
$nothing .
(Round to the nearest cent.)
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually. (Click on the icon
located on the top-right corner of the data table below in order
to copy its contents into a spreadsheet.)
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
Copy to Clipboard
+
Open in Excel
+
A
$1 comma 0001,000
88
%
1111
99
%
B
500500
1212
2020
1111
C
100100
1414...
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the
following table, all of which pay interest semiannually.
Bond Par Value Coupon interest
rate Year to maturity Required stated
annual return
A 500 7% 8 9%
B 1,000 12 20
14
C 500 16 5 13
The value of bond A is
The value of bond B is
The value of bond C is
Calculate the value of the bond shown in the following table, assuming it pays interest annually.
Calculate the value of the bond shown in the following table, assuming it pays interest annually.Par valueCoupon interest rateYears to maturityRequired return$1,00013%206%The value of the bond is $________Formula without using excel.
Consider the mixed streams of cash flows shown in the following? table 1)Find the present value...
Consider the mixed streams of cash flows shown in the following?
table
1)Find the present value of each stream using a 16?%discount
rate.
2)?Compare the calculated present values and
discuss them in light of the undiscounted cash flows totaling
?$175,000 in each case
1 $52,500 $17,500
2 $43,750 $26,250
3 $35,000 $35,000
4 $26,250 $43,750
5 $17,500 $52,500
Totals $175,000 $175,000
FOR EACH OF THE CASES SHOWN IN THE TABLE BELOW, CALCULATE THE FUTURE VALUE OF THE...
FOR EACH OF THE CASES SHOWN IN THE TABLE BELOW, CALCULATE THE
FUTURE VALUE OF THE SINGLE CASH FLOW DEPOSITED TODAY THAT WILL BE
AVAILABLE AT THE END OF THE DEPOSIT PERIOD IF THE INTEREST IS
COMPOUNDED ANNUALLY, SEMI ANNUALLY AND QUARTERLY AT THE RATE
SPECIFIED OVER THE GIVEN PERIOD.
CASE
CASH FLOW
INTEREST RATE
DEPOSIT PERIOD (YEARS)
ORDINARY
ANNUITY
ANNUITY DUE
A
$750
8%
10
B
$3,250
12%
8
C
$9,500
16%
20
D
$10,000
20%
4
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