What was the PV of the following cash flows using interest rate
= 6.0%.
Years:
0
1
2
3
4
|
|
|
|
|
Cash
Flows:
$0
$1,000
$2,000
$2,000
$2,000
a. $5,987
b. $6,276
c. $6,505
d. $6,730
What is the present value of the following cash flows at a
discount rate of 6%? Years 1 – 5 $10,000 Years 6 – 10 $12,000 Years
11 – 20 $15,000
A. $109,896
B. $119,157
C. $141,544
D. $129,639
If a professor currently earns $80,000 per year and expects
annual salary increases of 3%, approximately how long will the
professor have to work before his/her annual salary reaches
$500,000 per year?
A. 62 years
B. 49 years
C. 101 years...
If the appropriate discount rate for the following cash flows is
13 percent, what is the net present value of these cash flows
assuming the initial cost is $700? Should you go through with this
investment? YEAR CASH FLOW
0- $ -700
1- 100
2- 200
3- 300
4- 400
If the discount rate is 12%, what is the present value of the
following cash flows:
Year
Cash Flow
1
$10,000
2
$11,000
3
$12,000
4
$13,000
5
$14,000
6-15
$15,000 each year
a.
$144,618
b.
$90, 537
c.
$127,923
d.
$127,197
5.The appropriate discount rate for the following cash flows is
14 percent compounded quarterly.
Year
Cash Flow
1
$1,000
2
600
3
0
4
1,300
Required:
What is the present value of the cash flows?
1A) What is the discount rate at which the following cash flows
have a NPV of $0? Answer in %, rounding to 2 decimals.
Year 0 cash flow = -158,000
Year 1 cash flow = 30,000
Year 2 cash flow = 36,000
Year 3 cash flow = 38,000
Year 4 cash flow = 39,000
Year 5 cash flow = 43,000
Year 6 cash flow = 42,000
1B) Your firm is evaluating a capital budgeting project. The
estimated cash flows appear...
1A) What is the discount rate at which the following cash flows
have a NPV of $0? Answer in %, rounding to 2 decimals.
Year 0 cash flow = -149,000
Year 1 cash flow = 39,000
Year 2 cash flow = 30,000
Year 3 cash flow = 40,000
Year 4 cash flow = 30,000
Year 5 cash flow = 41,000
Year 6 cash flow = 37,000
1B) What is the discounted payback period on Versace's proposed
investment in a new...
What is the net present value of the following cash flows if the
relevant discount rate is 9 percent?
Year Cash Flow
0
-11,520
1
81
2
650
3
880
4
2300
5
15,800
A) $1,300.54 B) $1,913.12 C) $1,679.22 D) $1,022.87 E)
$1,506.54
45) SNR is considering a project with an initial cost of
$50,000. The project will produce cash inflows of $10,000 a year
for the first two years and $12,000 a year for the following three
years....
What is the present value of the following set of cash flows
when the discount rate is 11% p.a. compounded
monthly? (Rounded to the nearest dollar).
Year 1 $260
Year 2 $330
Year 3 $800
Year 4 $760
$1,605
$1,660
$1,565
$1,560
None of the above
What is the future value of $6,000 invested for 8 years at an
annually compounded interest rate of 11.5% p.a.? (Rounded to the
nearest dollar).
$14,980
$14,220
$14,333
$14,560
None of the above
Melbourne Ltd...