What is the value on 1/1/13 of the following cash flows: Date Cash Received Amount of...

What is the value on 1/1/13 of the following cash flows: Date Cash Received Amount of Cash 1/1/14 $14,000 1/1/15 $20,000 1/1/16 $30,000 1/1/17 $43,000 1/1/18 $57,000 Use a 7.5% discount rate, and round your answer to the nearest $10.

Expert Solution

Ans $ 126380

Date	Year	Project Cash Flows (i)	DF@ 7.5%	DF@ 7.5% (ii)	PV of Project A ( (i) * (ii) )

01-01-2014	1	14000	1/((1+7.5%)^1)	0.930	13,023.26
01-01-2015	2	20000	1/((1+7.5%)^2)	0.865	17,306.65
01-01-2016	3	30000	1/((1+7.5%)^3)	0.805	24,148.82
01-01-2017	4	43000	1/((1+7.5%)^4)	0.749	32,198.42
01-01-2018	5	57000	1/((1+7.5%)^5)	0.697	39,703.84
			PV		1,26,380.99

jeff jeffy answered 1 year ago

1. Calculate the present value of the following cash flows: What is $10,000 received five years...

1. Calculate the present value of the following cash flows: What is $10,000 received five years in the future worth today if the discount rate is 4%? ________ What is $10,000 received ten years in the future worth today if the discount rate is 4%? ________ What is $10,000 received five years in the future worth today if the discount rate is 8%? ________ What is $10,000 received ten years in the future worth today if the discount rate is...

At the date of issue, bond buyers determine the present value of two cash flows, (1)...

At the date of issue, bond buyers determine the present value of two cash flows, (1) periodic interest payments during the life of the bond and (2) the principal paid at maturity, using the stated rate of the bond. Select one: True False

If the appropriate discount rate for the following cash flows is 13 percent, what is the...

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

Question 1: What is the present value (PV) of the following series of cash flows at...

Question 1: What is the present value (PV) of the following series of cash flows at 10% and its IRR? Year 0: -2,000$ | Year 1: +800$ | Year 2: +600$ | Year 3: +700$ | Year 4: +500$ Question 2: Draw a present value (PV) profile of the following project and determine the IRR(s). Is the project acceptable at 10% cost of capital? Year 0: -4,000$ | Year 1: +10,200$ | Year 2: -6,300$ Observation: if you find cumbersome...

The present value of the following cash flows at 6% interest would be what? YEAR CASH...

The present value of the following cash flows at 6% interest would be what? YEAR CASH FLOW 1 $4 500 2 $5 600 3` $8 500 4 $9 000 Multiple Choice $23 495 $18 766 $24 675 $21 223

What is the present value of the following cash flows at a discount rate of 6%?...

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 discount rate is 12%, what is the present value of the following cash flows:...

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

. What is the present value of the following set of cash flows, discounted at 10.8...

. What is the present value of the following set of cash flows, discounted at 10.8 %10.8% per year? Year 1 2 3 4 5 CF $ 12$12 $ 22$22 $ 32$32 $ 42$42 $ 52$52 b. What is the present value of the following set of cash flows, discounted at 10.8 %10.8% per year? Year 1 2 3 4 5 CF $ 52$52 $ 42$42 $ 32$32 $ 22$22 $ 12$12 c. Each set contains the same cash flows...

What is the future value (in $) of cash flows 1-3 at the end ofyear...

What is the future value (in $) of cash flows 1-3 at the end of year 3, assuming a 6% interest rate (compounded annually)?End of yearCash flow1$600287138004 3,5005 1,2506 4,5307 2,350

if the fair market value of the gifted property on the date it was received is...

if the fair market value of the gifted property on the date it was received is less than the donor's adjusted basis, then the basis used to calculate loss is the

Question