Interest rate = 6.5%, calculate the future value of the following cash flows

Years: 0 1 2 3 4

| | | | |

Cash Flows: $0 $75 $225 $0 $300

a. $526.0

b. $553.7

c. $582.8

d. $645.8

Expert Solution

jeff jeffy answered 2 years ago

A) At a rate of 6.5%, what is the future value of the following cash flow...

A) At a rate of 6.5%, what is the future value of the following cash flow stream? In case the image above fails to load in your computer, or is not clear, the cash flows for years 0, 1, 2, 3 and 4 are $0, $75, $225, $0, and $300, respectively. B) Assume you are going to receive a payment of $1,000 in 5 years. You'd like to know what that cash flow would be worth today. To calculate the...

6. Calculate the value of the cash flows at time 6. The interest rate is 9.9%....

6. Calculate the value of the cash flows at time 6. The interest rate is 9.9%. 0 1 2 $1,120 $2,163 $3,290 7. In 1998, the average price of a gallon of gas was $1.01. Today, the average price of a gallon of gas is $2.87. At what annual rate has a gallon of gas increased over the last 20 years? (Answer as a percent. Enter only numbers and decimals in your response. Round to 2 decimal places.) 8. You...

3. Calculate the value of the cash flows at time 5. The interest rate is 10.13%....

3. Calculate the value of the cash flows at time 5. The interest rate is 10.13%. 0 1 2 $1,089 $2,208 $3,394 4. A company purchased an asset for $178,036 11 years ago. During that time, the asset grew at a rate of 0.71% per month. How much is it worth today? 5. You bought a stock for $13. You think the stock will have a return of 12.28%. How much will the stock be worth in 12 years? (Round...

2. Calculate the future value of the following cash flows If you invest $10,000 today at...

2. Calculate the future value of the following cash flows If you invest $10,000 today at 4% how much money will you have in five years? ________ If you invest $10,000 today at 4% how much money will you have in ten years? ________ If you invest $10,000 today at 8% how much money will you have in five years? ________ If you invest $10,000 today at 8% how much money will you have in ten years? ________ If you...

Calculate the net present value at year 0 for the following cash flows and interest rates...

Calculate the net present value at year 0 for the following cash flows and interest rates compounded semi-annually (rounded $ to two places after the decimal). The year 0 cash flow is $373, the year 1 cash flow is $200, and the year 2 cash flow is $-147. The interest rate for the first period (year 0 to 1) is 3% and the interest rate for the second period (year 1 to 2) is 4.5%.

Calculate the future value of $9,000 in a. four years at an interest rate of 10%...

Calculate the future value of $9,000 in a. four years at an interest rate of 10% per year. b. eight years at an interest rate of 10% per year. c. four years at an interest rate 20% of per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?

Calculate the future value of $6,000 in a. 5 years at an interest rate of 10%...

Calculate the future value of $6,000 in a. 5 years at an interest rate of 10% per year (round to the nearest dollar) b. 10 years at an interest rate of 10% per year (round to the nearest dollar) c. 5 years at an interest rate of 20% per year (round to the nearest dollar) d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? (choose from the...

Calculate the present value of the following cash flows given a discount rate of 12%: Year...

Calculate the present value of the following cash flows given a discount rate of 12%: Year 1 Year 2 Year 3 Year 4 Cash Flows $1,500 $4,500 $8,500 $12,000

"We can calculate future cash flows precisely and obtain an exact value for the NPV of...

"We can calculate future cash flows precisely and obtain an exact value for the NPV of an investment." Explain. Do you agree or disagree with the statement ? a new answer please.

You have to value a company based on its expected future cash flows. Interest rates are...

You have to value a company based on its expected future cash flows. Interest rates are currently 9%. If this company expects cash flow of $100000 next year (it is the end of year 0 or equivalently the beginning of the first year), growing at 7.8% each year until the end of the fifth year. Then, cash flow growth is expected to slow to 1.9 forever-after. What is the value of this company today, in thousands of dollars?

Question