Question
In: Finance
Find the present values of the following cash flow streams at a 12% discount rate. Round...
- Find the present values of the following cash flow streams at a
12% discount rate. Round your answers to the nearest cent.
0 1 2 3 4 5 Stream A $0 $150 $450 $450 $450 $300 Stream B $0 $300 $450 $450 $450 $150 Stream A $
Stream B $
- What are the PVs of the streams at a 0% discount rate?
Stream A $
Stream B $
Solutions
Expert Solution
| Statement showing Cash flows | Stream A | Stream B | ||||
| Particulars | Time | PVf 12% | Amount | PV | ||
| Cash flows | - | 1.0000 | - | - | ||
| Cash flows | 1.00 | 0.8929 | 150.00 | 133.93 | 300.00 | 267.86 |
| Cash flows | 2.00 | 0.7972 | 450.00 | 358.74 | 450.00 | 358.74 |
| Cash flows | 3.00 | 0.7118 | 450.00 | 320.30 | 450.00 | 320.30 |
| Cash flows | 4.00 | 0.6355 | 450.00 | 285.98 | 450.00 | 285.98 |
| Cash flows | 5.00 | 0.5674 | 300.00 | 170.23 | 150.00 | 85.11 |
| PV of Cash flows | 1,269.18 | 1,317.99 | ||||
| b) | ||||||
| Statement showing Cash flows | Stream A | Stream B | ||||
| Particulars | Time | PVf 0% | Amount | PV | ||
| Cash flows | - | 1.0000 | - | - | ||
| Cash flows | 1.00 | 1.0000 | 150.00 | 150.00 | 300.00 | 300.00 |
| Cash flows | 2.00 | 1.0000 | 450.00 | 450.00 | 450.00 | 450.00 |
| Cash flows | 3.00 | 1.0000 | 450.00 | 450.00 | 450.00 | 450.00 |
| Cash flows | 4.00 | 1.0000 | 450.00 | 450.00 | 450.00 | 450.00 |
| Cash flows | 5.00 | 1.0000 | 300.00 | 300.00 | 150.00 | 150.00 |
| PV of Cash flows | 1,800.00 | 1,800.00 | ||||
jeff jeffy answered 2 years agoRelated Solutions
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Find the present values of the following cash flow streams at a 10% discount rate. Do...
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10% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
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1
2
3
4
5
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Find the present values of the following cash flow streams. The appropriate interest rate is 12%....
Find the present values of the following cash flow streams. The
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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, when
working with the...
Find the present values of the following cash flow streams. The appropriate interest rate is 12%....
Find the present values of the following cash flow streams.
The appropriate interest rate is 12%. (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, when working with
the...
Find the present values of the following cash flow streams. The appropriate interest rate is 12%....
Find the present values of the following cash flow streams. The
appropriate interest rate is 12%. (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, when
working with the...
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