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 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 = $
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 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%: 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 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 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 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 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 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 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