Question
In: Finance
ou are given three investment alternatives to analyze. The cash flows from these three investments are...
ou are given three investment alternatives to analyze. The cash flows from these three investments are shown in the popup window:.... Assuming a discount rate of 21 percent, find the present value of each investment.
a. What is the present value of investment A at 21 percent annual discount rate? $ nothing (Round to the nearest cent.)
b. What is the present value of investment B at 21 percent annual discount rate? $ nothing (Round to the nearest cent.)
|
END OF YEAR |
A |
B |
C |
|
|
1 |
$16,000 |
$16,000 |
||
|
2 |
16,000 |
|||
|
3 |
16,000 |
|||
|
4 |
16,000 |
|||
|
5 |
16,000 |
$16,000 |
|
|
|
6 |
16,000 |
80,000 |
||
|
7 |
16,000 |
|||
|
8 |
16,000 |
|||
|
9 |
16,000 |
|||
|
10 |
16,000 |
16,000 |
||
Solutions
Expert Solution
The following is the Excel worksheet of the calculation of present values of the three projects:-
Following is the formula sheet of the above Excel worksheet for easy understanding of the formulas used:-
Answers:-
Present Value of Investment A = $46815.7494
Present Value of Investment B = $24218.1906
Present Value of Investment C = $41091.9040
jeff jeffy answered 1 year agoRelated Solutions
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...
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...
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:
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 7,000 14,000
What is the present value of each of these three investments if
the appropriate discount rate is 14 percent?
a. What is the present value of investment A at an annual
discount rate of 14 percent?
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:
End of Year A B C
1 $1,000 $3,000 $5,000
2 2,000 3,000 5,000
3 3,000 3,000 (5,000)
4 -4,000 3,000 (5,000)
5 4,000 6,000 15,000
What is the present value of each of these three investments if
the appropriate discount rate is 15 percent?
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:
End of year
a
b
c
1
$1,000
$2,000
$6,000
2
2,000
2,000
6,000
3
3,000
2,000
(6,000)
4
(4,000)
2,000
(6,000)
5
4,000
5,000
16,000
What is the present value of each of these three investments if
the appropriate discount rate is 9 percent?
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 $1,000 $3,000 $5,000
2 2,000 3,000 5,000
3 3,000 3,000 (5,000)
4 -4,000 3,000 (5,000)
5 4,000 7,000 15,000
What is the present value of each of these three investments if
the appropriate discount rate is 13 percent?
(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...
You are given an investment to analyze. The cash flows from this investment are End of...
You are given an investment to analyze. The cash flows from this
investment are End of year $1,889 $4,423 $631 $2,091 $1,431 What is
the future value of this investment at the end of year five if
13.93 percent per year is the appropriate interest (discount)
rate?
You are given an investment to analyze. The cash flows from this investment are End of...
You are given an investment to analyze. The cash flows from this
investment are
End of year
1. $23,820
2. $2,250
3. $5,750
4. $13,840
5. $3,240
What is the present value of this investment if 5 percent per
year is the appropriate discount rate?
Round the answer to two decimal places.
(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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Do we have any online or offline tool to convert c and cpp programs into MIPS...
- -what is the pH of HCl 0,1M and NaCl 0,1M mixed together solution? -What is the...
- function X=extractDWT(x_train,startS,endS,wStep,wRange) % x_train = input signal % startS = from second % endS = end...
- Do you agree that Social Loafing is similar to Theory X. Give an example to support...
- Computing Cost of Goods Sold and Ending Inventory. Bartov Corporation reports the following beginning inventory and...
- SQL FORMAT (11-13 are completed and correct) -- 11. what are the names of all students...
- You have been hired as a capital budgeting analyst by Advent Sports, a sporting goods firm...
ADVERTISEMENT