Find the present value of the following cash flows. A perpetual
stream of consecutive annual payments...
Find the present value of the following cash flows. A perpetual
stream of consecutive annual payments (made at year-end) of $800,
which starts at the end of year 5 and grows by 6% per year forever.
Discount rate is 10%.
What is the present value of a perpetual stream of cash flows
that pays $4500 at the end of year one and the annual cash flows
grow at a rate of 4% per year indefinitely, if the appropriate
discount rate is 8%? What if the appropriate discount rate is
6%?
What is the present value of a perpetual stream of cash flows
that pays $3,500 at the end of year one and the annual cash flows
grow at a rate of 4% per year indefinitely, if the appropriate
discount rate is 8%? What if the appropriate discount rate is
6%?
Q). a. If the appropriate discount rate is 8%,
the present value of the growing perpetuity is __ (Round to the
nearest cent)
Please show your work.
What is the present value of a perpetual stream of cash flows
that pays $5 comma 500 at the end of year one and the annual cash
flows grow at a rate of 3% per year indefinitely, if the
appropriate discount rate is 14%? What if the appropriate discount
rate is 12%?
a.If the appropriate discount rate is 14%, the present value of
the growing perpetuity is $_____. (Round to the nearest
cent.)
b.If the appropriate discount rate is...
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
What is the present value of a stream of cash flows expected to
grow at a 10 percent rate per year for 5 years and then remain
constant thereafter until the final payment in 30 years. The
payment at the end of the first year is $1,000 and the discount
rate is 5.00 percent.
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).
What is the present value of a constant stream of $5,000 monthly
cash flows with
the first cash flow to be paid in 6 months, and the final cash
flow to be paid in 32
months? Assume interest rates are 8% p.a. compounded monthly
$114,788
$102,777
$119,148
Calculate the annual cash flows (annuity payments) from a
fixed-payment annuity if the present value of the 25-year annuity
is $1.9 million and the annuity earns a guaranteed annual return of
13 percent. The payments are to begin at the end of seven
years.