Question

In: Finance

4) What is the present value of receiving (the sum of) $30,000 next year, $35,000 in...

4) What is the present value of receiving (the sum of) $30,000 next year, $35,000 in two years, and $40,000 in three years if the interest rate is 4%?

Solutions

Expert Solution

Ans $ 96765.48

Year Project Cash Flows (i) DF@ 4% DF@ 4% (ii) PV of Project ( (i) * (ii) )
1 30000 1/((1+4%)^1) 0.961538                             28,846.15
2 35000 1/((1+4%)^2) 0.924556                             32,359.47
3 40000 1/((1+4%)^3) 0.888996                             35,559.85
PV                             96,765.48

Related Solutions

4) Determine the present value of $35,000 to be received at the end of each of...
4) Determine the present value of $35,000 to be received at the end of each of five years, using an interest rate of 5%, compounded annually, as follows: a) By successive computations, using the Present Value of $1 table below. You must show your work. b) By a single computation using the Present Value of an Annuity of $1 table below. You must show your work. Note: The two answers will not come out exactly the same, but should be...
What is the present value of receiving 10,000$ every other year for 20 years (you will...
What is the present value of receiving 10,000$ every other year for 20 years (you will receive 10 payments in total), if the annual interest rate (compounded annually) is 6%. The first payment is today.
Find the present value of receiving $1000 per year for ten years beginning in year 12...
Find the present value of receiving $1000 per year for ten years beginning in year 12 until year 21, assuming an interest rate of 9%.
Using your Present Value for a Lump Sum, Present Value for an Annuity, Future Value of...
Using your Present Value for a Lump Sum, Present Value for an Annuity, Future Value of a Lump Sum and Future Value of an Annuity, create four separate problems (with solutions) that use each table. Therefore, you need one problem for each table but four problems in total. Please include formulas and explanations where needed. The tables aren't provided because it is however you want to do it (however, it does include the period and interest rate). (i.e) Can be...
What is the net present value of receiving $250 in 5 years from now if the...
What is the net present value of receiving $250 in 5 years from now if the interest rate is 11%?
What is the present value of a lump sum, $240,000 in 6 years if the interest...
What is the present value of a lump sum, $240,000 in 6 years if the interest rate (discount rate) is 11.4 percent annually? (Round your answer to 2 decimal places. (e.g., 123,345.16)) Your answer:
1. What is the present value of a $150 lump sum to be received in six...
1. What is the present value of a $150 lump sum to be received in six years if the opportunity cost rate is 10 percent? A. $62.09 B. $65.61 C. $84.67 D. $85.69 E. $78.42 2. You buy a seven-year, 6 percent savings certificate for $1,000. If interest is compounded annually, what will its value be at maturity? A. $1,567.43 B. $1,486.87 C. $1,601.03 D. $1,503.62 E. $1,466.33
What is the present day value of twenty annual periodic payments of $30,000 paid at the...
What is the present day value of twenty annual periodic payments of $30,000 paid at the end of each year at a discount rate of 2.7%?
What is the present value of CD with 4% annual interest that matures in 1 year...
What is the present value of CD with 4% annual interest that matures in 1 year with the value of $3000? What is the future value? What factor would determine which value you chose to use?
What is the present value of $2,000 paid at the end of each of the next...
What is the present value of $2,000 paid at the end of each of the next 84 years if the interest rate is 8% per​ year? Round to the nearest cent
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT