Question
In: Finance
Present—Mixed streams Consider the mixed streams of cash flows shown in the following table, a. Find...
Present—Mixed streams Consider the mixed streams of cash flows shown in the following table,
a. Find the present value of each stream using a 6% discount rate.
b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $80,000 in each case. Is there some discount rate at which the present values of the two streams would be equal?
year stream a stream b
1 -60,000 20,000
2 50,000 30,000
3 40,000 40,000
4 30,000 50,000
5 20,000 -60,000
Totals 80,000 80,000
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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
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...
For the mixed stream of cash flows shown in the following table. determine the future value...
For the mixed stream of cash flows shown in the following
table. determine the future value at the end of the final year if
deposits are made into an account paying annual interest of 15%,
assuming that no withdrawals are made during the period and that
the deposits are made:
a. At the end of each year.
b. At the beginning of each year
Year
Cash flow stream
1
$34,800
2
$29,000
3
$23,200
4
$11,600
5
$5,800
Value of a mixed stream For the mixed stream of cash flows shown in the following...
Value of a mixed stream For the mixed stream of cash flows shown
in the following table, LOADING..., determine the future value at
the end of the final year if deposits are made into an account
paying annual interest of 13%, assuming that no withdrawals are
made during the period and that the deposits are made:
1
30,300
2
25,250
3
20,200
4
10,100
5
5,050
a. At the end of each year.
b. At the beginning of each year....
UNEVEN CASH FLOW STREAM a.)Find the present values of the following cash flow streams at a...
UNEVEN CASH FLOW STREAM
a.)Find the present values of the following cash flow streams at
a 4% discount rate. Round your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$100
$400
$400
$400
$250
Stream B
$0
$250
$400
$400
$400
$100
Stream A $ ________
Stream B $ ________
b.)What are the PVs of the streams at a 0% discount rate?
Stream A $ ________
Stream B $ ________
*Please show how to...
UNEVEN CASH FLOW STREAM Find the present values of the following cash flow streams at a...
UNEVEN CASH FLOW STREAM
Find the present values of the following cash flow streams at a
4% discount rate. Round your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$400
$400
$400
$300
Stream B
$0
$300
$400
$400
$400
$150
Stream A $
Stream B $
What are the PVs of the streams at a 0% discount rate?
Stream A $
Stream B $
UNEVEN CASH FLOW STREAM Find the present values of the following cash flow streams at a...
UNEVEN CASH FLOW STREAM
Find the present values of the following cash flow streams at a
9% discount rate. Round your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$400
$400
$400
$300
Stream B
$0
$300
$400
$400
$400
$150
Stream A $
Stream B $
What are the PVs of the streams at a 0% discount rate?
Stream A $
Stream B $
Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate...
Uneven Cash Flow Stream
Find the present values of the following cash flow streams. The
appropriate interest rate is 10%. (Hint: It is fairly easy
to work this problem dealing with the individual cash flows.
However, if you have a financial calculator, read the section of
the manual that describes how to enter cash flows such as the ones
in this problem. This will take a little time, but the investment
will pay huge dividends throughout the course. Note that,...
Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate...
Uneven Cash Flow Stream
Find the present values of the following cash flow streams. The
appropriate interest rate is 6%. (Hint: It is fairly easy
to work this problem dealing with the individual cash flows.
However, if you have a financial calculator, read the section of
the manual that describes how to enter cash flows such as the ones
in this problem. This will take a little time, but the investment
will pay huge dividends throughout the course. Note that,...
Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate...
Uneven Cash Flow Stream
Find the present values of the following cash flow streams. The
appropriate interest rate is 6%. Round your answers to the nearest
cent. (Hint: It is fairly easy to work this problem
dealing with the individual cash flows. However, if you have a
financial calculator, read the section of the manual that describes
how to enter cash flows such as the ones in this problem. This will
take a little time, but the investment will pay...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- For Questions 1-3: consider the following code: public class A { private int number; protected String...
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
ADVERTISEMENT