Question

In: Finance

Using excel, determine: The present value of a five (5) year project, with expected annual cash...

  1. Using excel, determine:
  1. The present value of a five (5) year project, with expected annual cash flows given below, assuming the cost of capital of 12.5% p.a.                                                                (1 Mark)

Year

Cash flow

1

75,600.00

2

58,800.00

3

50,400.00

4

42,000.00

5

36,500.00

ii. The future value of $ 12,200 received annually over a period of four (4) years, interest paid quarterly at the rate of 14% p.a.                                    

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

5. Present value To find the present value of a cash flow expected to be paid...
5. Present value To find the present value of a cash flow expected to be paid or received in the future, you will   the future value cash flow by (1 + I)NN. What is the value today of a $12,000 cash flow expected to be received eight years from now based on an annual interest rate of 6%? $9,411 $6,023 $11,670 $7,529 Your broker called earlier today and offered you the opportunity to invest in a security. As a friend,...
evaluate the following project using the Net Present Value method. year                              cash flo
evaluate the following project using the Net Present Value method. year                              cash flow 0 investment                325,000 1 income                       90,000 2 add investment      20,000 3 income                     140,000 4 income                     125,000 discount rate                     9% NPV ____________        Go or No Go ___________ compute operating cash flow using three of the four methods Sales       400,000 Dep.        35,000 cost        250,000 Tax Rate        35%
A project earns $10,000 a year for five years. The present total value of the project...
A project earns $10,000 a year for five years. The present total value of the project is (using a discount rate of 5.75%): a) $50,000 b) more than $50,000 c) less than $50,000 The NPV of a project is $1,012, using a discount rate of 9.75% p.a. The rate of return on this project is: a) 9.75% b) more than 9.75% c) less than 9.75% The NPV of a project is 0, using a discount rate of 10%. The rate...
(a)Determine the present value of the expected future cash flowassuming:             (1) There is no hedge.             1815...
(a)Determine the present value of the expected future cash flowassuming:             (1) There is no hedge.             1815 Gallons * BRL 90.15 = 163,622             Exchange Rate = 0.4234             Covert to USD = $69,277.55             Interest Rate of USD = 0.0215             Present Value In USD =. $67,819.44                          (2) The company hedges using a forward contract 1815 Gallons * BRL 90.15 = 163,622 Exchange Rate = 0.4227 Convert to USD = $69,163.02 Interest Rate of USD = 0.0215 Present Value in USD = $67,707.31...
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present...
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2018, of a five-period annual annuity of $6,200 under each of the following situations: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1.The first payment is received on December 31, 2019, and interest is compounded annually. 2.The first payment is received on...
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present...
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2018, of a five-period annual annuity of $7,700 under each of the following situations: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1.The first payment is received on December 31, 2019, and interest is compounded annually. 2.The first payment is received on...
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present...
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2018, of a five-period annual annuity of $5,600 under each of the following situations: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1.The first payment is received on December 31, 2019, and interest is compounded annually. 2.The first payment is received on...
Using Excel. What is the present value of the following series of cash payments: $8,000 per...
Using Excel. What is the present value of the following series of cash payments: $8,000 per year for four consecutive years starting one year from today, followed by annual cash payments that increase by 2% per year in perpetuity (i.e. cash payment in year 5 is $8,000*1.02, cash payment in year 6 is $8,000*1.022, etc.)? Assume the appropriate discount rate is 5%/year.
1. Determine the present value of five​-year bonds payable with face value of $91,000 and stated...
1. Determine the present value of five​-year bonds payable with face value of $91,000 and stated interest rate of 14​%, paid semiannually. The market rate of interest is 14​% at issuance. 2. Same bonds payable as in Requirement​ 1, but the market interest rate is 16​%. 3. Same bonds payable as in Requirement​ 1, but the market interest rate is 10​%.
Calculate the present value (PV ) of an annuity stream of 5 annual cash flows of $1,200, with the first cash flow received in one year
  Calculate the present value (PV ) of an annuity stream of 5 annual cash flows of $1,200, with the first cash flow received in one year, assuming a discount rate of 10%.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT