(Extra Credit) What is the value of the following cash flows in year 6? What is...

(Extra Credit) What is the value of the following cash flows in year 6? What is the value today? Assume interest rates today are 6.5%, then rates will be 6.25% for the next 4 years, 3.75% for the next 3 years, 5.3% for the next 4 years, and 3.75% thereafter.

Year Cash Flow

6 $5,675

8 $9,725

10 $6,750

17 $11,750

Expert Solution

Please rate Thumbs up

jeff jeffy answered 1 month ago

The present value of the following cash flows at 6% interest would be what? YEAR CASH...

The present value of the following cash flows at 6% interest would be what? YEAR CASH FLOW 1 $4 500 2 $5 600 3` $8 500 4 $9 000 Multiple Choice $23 495 $18 766 $24 675 $21 223

What is the present value of the following cash flows at a discount rate of 6%?...

What is the present value of the following cash flows at a discount rate of 6%? Years 1 – 5 $10,000 Years 6 – 10 $12,000 Years 11 – 20 $15,000 A. $109,896 B. $119,157 C. $141,544 D. $129,639 If a professor currently earns $80,000 per year and expects annual salary increases of 3%, approximately how long will the professor have to work before his/her annual salary reaches $500,000 per year? A. 62 years B. 49 years C. 101 years...

If today is Year 0, what is the future value of the following cash flows 6 years from now?

If today is Year 0, what is the future value of the following cash flows 6 years from now? Assume an interest rate of 5.0 percent per year.YearCash Flow2$8,5003$9,3006$7,100 Group of answer choices$21,041.57$23,266.73$25,653.05$28,197.72$30,143.44

If the appropriate discount rate for the following cash flows is 11.7 percent per year, what is the present value of the cash flows?

If the appropriate discount rate for the following cash flows is 11.7 percent per year, what is the present value of the cash flows?YearCash Flow1$21,6002$25,9003$38,7004$16,200 Group of answer choices$71,407.19$74,221.80$78,270.77$80,407.16$81,121.03

a. What is the present value of end-of-year cash flows of $7,000 per year, with the...

a. What is the present value of end-of-year cash flows of $7,000 per year, with the first cash flow received five years from today and the last one 40 years from today? Assume interest rate of 10%. $41,271.67 $44,496.49 $45,733.15 $46,264.30 $50,218.30 b. What is the value of a 30-year annuity that pays $1250 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 6 percent for years 1 through...

6. Calculate the value of the cash flows at time 6. The interest rate is 9.9%....

6. Calculate the value of the cash flows at time 6. The interest rate is 9.9%. 0 1 2 $1,120 $2,163 $3,290 7. In 1998, the average price of a gallon of gas was $1.01. Today, the average price of a gallon of gas is $2.87. At what annual rate has a gallon of gas increased over the last 20 years? (Answer as a percent. Enter only numbers and decimals in your response. Round to 2 decimal places.) 8. You...

1. What is the future value on December 31, 2022, of 6 annual cash flows of...

1. What is the future value on December 31, 2022, of 6 annual cash flows of $50,000 with the first cash flow being made on December 31, 2016, and interest at 9% compounded annually? Round your answer to two decimal places. 3.What is the present value on January 1, 2016, of 7 equal future annual receipts of $30,000 if the first receipt is received on January 1, 2017, and the interest rate is 10% compounded annually? Round your answer to...

A. What is the payback period for the following set of cash flows? Year Cash...

A. What is the payback period for the following set of cash flows? Year Cash Flow 0 −$ 5,300 1 2,300 2 2,300 3 1,400 4 1,100 B. A project with an initial cost of $22,350 is expected to generate cash flows of $5,200, $7,300, $8,400, $7,300, and $6,000 over each of the next five years, respectively. What is the project's payback period? C. A new project has an initial cost of $133,000. The...

What is the value in year 4 of a $710 cash flow made in year 6...

What is the value in year 4 of a $710 cash flow made in year 6 if interest rates are 9 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

If the discount rate is 12%, what is the present value of the following cash flows:...

If the discount rate is 12%, what is the present value of the following cash flows: Year Cash Flow 1 $10,000 2 $11,000 3 $12,000 4 $13,000 5 $14,000 6-15 $15,000 each year a. $144,618 b. $90, 537 c. $127,923 d. $127,197

Question