Question
In: Finance
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze....
(Present
value of an uneven stream of
payments)
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
|
Investment |
|||||||||
|
End of Year |
A |
B |
C |
||||||
|
1 |
$ |
2,000 |
$ |
2,000 |
$ |
5,000 |
|||
|
2 |
|
3,000 |
2,000 |
5,000 |
|||||
|
3 |
|
4,000 |
2,000 |
−5,000 |
|||||
|
4 |
|
(5,000) |
2,000 |
(5,000) |
|||||
|
5 |
|
5,000 |
5,000 |
|
15,000 |
||||
What is the present value of each of these three investments if the appropriate discount rate is
10 percent?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze....
(Present
value of an uneven stream of
payments)
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
Investment
End of Year
A
B
C
1
$
3,000
$
1,000
$
5,000
2
4,000
1,000
5,000
3
5,000
1,000
(5,000)
4
(6,000)
1,000
(5,000)
5
6,000
4,000
15,000
What is the present value of each of these three investments if
the appropriate discount rate is
15
percent?
a. What is the present...
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze....
(Present
value of an uneven stream of
payments)
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
Investment
End of Year
A
B
C
1
$
1 comma 0001,000
$
3 comma 0003,000
$
6 comma 0006,000
2
2 comma 0002,000
3 comma 0003,000
6 comma 0006,000
3
3 comma 0003,000
3 comma 0003,000
( 6 comma 000 )(6,000)
4
( 4 comma 000 )(4,000)
3 comma 0003,000
( 6 comma...
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze....
(Present
value of an uneven stream of
payments)
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
Investment
End of Year
A
B
C
1
$
1 comma 0001,000
$
3 comma 0003,000
$
6 comma 0006,000
2
2 comma 0002,000
3 comma 0003,000
6 comma 0006,000
3
3 comma 0003,000
3 comma 0003,000
( 6 comma 000 )(6,000)
4
( 4 comma 000 )(4,000)
3 comma 0003,000
( 6 comma...
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze....
(Present value of an uneven stream of payments) You are given
three investment alternatives to analyze. The cash flows from these
three investments are as follows:
Investment
End of Year
A
B
C
1
$
1,000
$
1,000
$
5,000
2
2,000
1,000
5,000
3
3,000
1,000
(5,000)
4
(4,000)
1,000
(5,000)
5
4,000
5,000
15,000
What is the present value of each of these three investments if
the appropriate discount rate is 8 percent?
a. What is the present...
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze....
(Present value of an uneven stream of payments)
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
Investment
End of Year
A
B
C
1
$
1,000
$
1,000
$
5,000
2
2,000
1,000
5,000
3
3,000
1,000
(5,000)
4
(4,000)
1,000
(5,000)
5
4,000
3,000
15,000
What is the present value of each of these three investments if
the appropriate discount rate is 13 percent?
a. What is the present...
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze....
(Present
value of an uneven stream of
payments)
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
Investment
End of Year
A
B
C
1
$
3,000
$
3,000
$
6,000
2
4,000
3,000
6,000
3
5,000
3,000
(6,000)
4
(6,000)
3,000
(6,000)
5
6,000
5,000
16,000
What is the present value of each of these three investments if
the appropriate discount rate is
8
percent?
a. What is the present...
(Present value of an uneven stream of payments ) You are given three investment alternatives to...
(Present value of an uneven stream of payments ) You are given
three investment alternatives to analyze. The cash flows from these
three investments are as follows:
Investment
End of Year
A
B
C
1
$
3,000
$
3,000
$
4,000
2
4,000
3,000
4,000
3
5,000
3,000
(4,000)
4
(6,000)
3,000
(4,000)
5
6,000
6,000
14,000
What is the present value of each of these three
investments if the appropriate discount rate is 8
percent?
1. What is...
(Present value of annuities and complex cash flows) You are given three investment alternatives to analyze....
(Present value of annuities and complex cash flows)
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
Investment Alternatives:
End of Year
A
B
C
1
10,000
10,000
2
10,000
3
10,000
4
10,000
5
10,000
10,000
6
10,000
50,000
7
10,000
8
10,000
9
10,000
10
10,000
10,000
Assuming an annual discount rate of 20 percent, find the
present value of each investment.
a. What is the present value of...
Problem 4-7 Present and Future Value of an Uneven Cash Flow Stream An investment will pay...
Problem 4-7 Present and Future Value of an Uneven Cash Flow
Stream An investment will pay $200 at the end of each of the next 3
years, $400 at the end of Year 4, $600 at the end of Year 5, and
$800 at the end of Year 6. If other investments of equal risk earn
8% annually, what is its present value? Round your answer to the
nearest cent.What is its future value? Round your answer to the
nearest...
You are given three investment alternatives to analyze. The cash flows from these three investments are...
You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:
Investment
End of Year
A
B
C
1
$
2 comma 0002,000
$
3 comma 0003,000
$
4 comma 0004,000
2
3 comma 0003,000
3 comma 0003,000
4 comma 0004,000
3
4 comma 0004,000
3 comma 0003,000
( 4 comma 000 )(4,000)
4
( 5 comma 000 )(5,000)
3 comma 0003,000
( 4 comma 000 )(4,000)
5
5 comma 0005,000
5 comma...
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