Question

In: Math

Find the total value TV of the given income stream and also find its present value...

Find the total value TV of the given income stream and also find its present value PV (at the beginning of the given interval) using the given interest rate. (Round your answers to the nearest cent.) R(t) = 54,000, 0 ≤ t ≤ 12, at 4%

TV = $

PV = $

Solutions

Expert Solution

PART(a):

The total value TV of the income stream is given by,

integrate wrt t,

rounding off to nearest cent,

PART(b):

The present value PV of the income stream is given by,

after integrating,

rounding off to nearest cent,

I hope this answer helps,
Thanks,
Keep posting questions.


Related Solutions

Find the total value TV of the given income stream and also find its present value...
Find the total value TV of the given income stream and also find its present value PV (at the beginning of the given interval) using the given interest rate. (Round your answers to the nearest cent.) R(t) = 14,000e^0.06t, 0 ≤ t ≤ 3, at 8%
Find the total value TV of the given income stream and also find its future value...
Find the total value TV of the given income stream and also find its future value FV (at the end of the given interval) using the given interest rate. HINT [See Examples 4, 5.] (Round your answers to the nearest cent.) R(t) = 90,000 + 5,000t, 0 ≤ t ≤ 5, at 10% TV = $   FV = $  
1. Find the present value of the following cash flow stream with an interest rate of...
1. Find the present value of the following cash flow stream with an interest rate of 7%: Year 1 = $2,000 Year 2 = $4,000 Year 3 = $1,000 Year 4 = $6,000 2. Find the present value of the following ordinary annuity: $800 per year for 10 years at 6% 3. If you invest $5,000 in an investment which has an annual return of 10% but compounds every 6 months (instead of yearly), how much will it have after...
Find the present value of the following cash flow stream if the discount rate is 7.17%:...
Find the present value of the following cash flow stream if the discount rate is 7.17%: CF1 = 24, CF2 = 41, CF3 = 51, CF4 = 69. The cash flows are received at the end of each year. Round to the nearest $0.01 (e.g., if your answer is $175.386, record it as 175.39).
Find the present value of the following stream of cash flows, assuming that the firm's opportunity...
Find the present value of the following stream of cash flows, assuming that the firm's opportunity cost is 12 percent. What would be the future value of those cash flows? Year Amount 1 $10,000 2 35,000 3 24,000 4 53,000
1- What is the present value of a stream of income resulting from an initial investment...
1- What is the present value of a stream of income resulting from an initial investment of $2000 (with an interest rate of 7%) with net cash flows of $100 after one year, $200 after two years, $300 after the third and fourth years, $600 after the fifth and sixth years and $550 after the seventh and eighth years? 2- What is the internal rate of return of the stream of rents from the previous question? 3- What is the...
1. Mr. Abdulla wants to determine the present value of a stream of income from an...
1. Mr. Abdulla wants to determine the present value of a stream of income from an investment asset you expect will offer you a $1,500 annual income, over a period of 5 years, based on the promise of a 6% rate of return, and for which there is no salvage value at the end of the 5 year term. a) Calculate both equation and financial calculator solutions to this problem. (Equation 2 marks and Calculator 1 mark) b) Explain how...
(Present value of an uneven stream of payments ) You are given three investment alternatives to...
(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 $ 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 6,000    14,000 What is the present value of each of these three investments if the appropriate discount rate is 8 percent? 1. What is...
Find the present and future values of a constant income stream of $3000 per year over...
Find the present and future values of a constant income stream of $3000 per year over a 13 year period at 5% annual interest compounded continuously. Round your answers to the nearest cent. In particular, ROUND your answer for the Present Value to the nearest cent BEFORE using it to compute the Future Value. a) Present Value: $ equation editor b) Future Value: $ equation editor
1. Find the present value as of year 0 of the following cash-flow stream if investments...
1. Find the present value as of year 0 of the following cash-flow stream if investments of similar risk are yielding 8% Year​​ Cash Flow 0 through 14 ​​ $8,000 per year in each of those years 2. Find the present value as of year 0 of the following cashflow stream if investments of similar risk are yielding 8.25% Year ​​ Cash Flow 6 through 28​ ​$8,000 per year in each of those years
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT