Question

In: Finance

What is the present value of the payment stream discounted at 5% annually: $1000 at the...

What is the present value of the payment stream discounted at 5% annually: $1000 at the end of year 1, -$2000 at the end of year 2, and $3000 at the end of year 3? Also calculate future value of the cash flows at the end of year 3. Financial calculator not allowed for this question. Show all work!

Solutions

Expert Solution



Related Solutions

(Required) What is the present value of the payment stream discounted at 5% annually: $1000 at...
(Required) What is the present value of the payment stream discounted at 5% annually: $1000 at the end of year 1, -$2000 at the end of year 2, and $3000 at the end of year 3? Also calculate future value of the cash flows at the end of year 3. Financial calculator not allowed for this question. Show all work!
1) What is the present value of $9,065,725, discounted at 12.74%for 5 years, compounded annually?...
1) What is the present value of $9,065,725, discounted at 12.74% for 5 years, compounded annually?2) You are offered an investment that will pay you a total of $8,816,338 in 11 years. You can otherwise invest your money in similar investments that earn 2.68%, compounded annually. What's the most you'd be willing to pay for this investment?3)How much simple interest is earned on $92,089 at 9.24% over 14 years?4) You invested $84,279 in a savings account earning 0.19% in simple...
​ (Present value of a perpetuity​)  What is the present value of a ​$4,500 perpetuity discounted...
​ (Present value of a perpetuity​)  What is the present value of a ​$4,500 perpetuity discounted back to the present at 14 ​percent? The present value of the perpetuity is $(...)
What is the difference between discounted present value and net present value?   What is the NPV...
What is the difference between discounted present value and net present value?   What is the NPV of the following cash flows, assuming a 6% discount rate? Initial investment – year 0: $(1,000,000) Year 1 cash flows: $100,000 Year 2 cash flows: $100,000 Year 3 cash flows: $100,000 Year 4 -sale: $1,200,000
What is the present value of a perpetual stream of cash flows that pays ​$5 comma...
What is the present value of a perpetual stream of cash flows that pays ​$5 comma 500 at the end of year one and the annual cash flows grow at a rate of 3​% per year​ indefinitely, if the appropriate discount rate is 14​%? What if the appropriate discount rate is 12​%? a.If the appropriate discount rate is 14​%, the present value of the growing perpetuity is​ $_____. ​ (Round to the nearest​ cent.) b.If the appropriate discount rate is...
What is the present value of a $45 perpetuity discounted back to the present at 12 percent?
(Present value of a perpetuity) What is the present value of a $45 perpetuity discounted back to the present at 12 percent? The present value of the perpetuity is $ (Round to the nearest cent.)
Draw a graph showing the present value of a $1000 payment made 10 year in the...
Draw a graph showing the present value of a $1000 payment made 10 year in the future on the y-axis, and discount rate on the x-axis.
What is the present value and future value of the following cash flow stream at a...
What is the present value and future value of the following cash flow stream at a rate of 8.00%? Years: 0 1 2 3 4 CFs: $0 $75 $225 $0 $500
Present Value of an Annuity What is the present value of a $400 annuity payment over...
Present Value of an Annuity What is the present value of a $400 annuity payment over 6 years if interest rates are 9 percent? $670.84 $2,013.18 $238.51 $1,794.37
What is the present value of a stream of cash flows expected to grow at a...
What is the present value of a stream of cash flows expected to grow at a 10 percent rate per year for 5 years and then remain constant thereafter until the final payment in 30 years. The payment at the end of the first year is $1,000 and the discount rate is 5.00 percent.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT