6.1 Consider the following cash flows and compute the equivalent annual worth at i = 10%: An Investment Revenue -$5,000 1 $2,000 2 2,000 3 3,000 4 3,000 5 1,000 2,000 500
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A: given, r=13% year cashflow B 0 -2500 1 2770 2 2470 3 2170 4 1870 5 1570 npv 5388.66…
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A: Introduction:- Present value is the current value of the future sum of money, at a specified rate of…
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A: Present worth of cash flow or outflow may be calculated by using present value factor at the given…
Q: Example 1: Find the Net Present Value assuming cost of capital is 10 %? Year Cash Flow Rs.…
A: The given problem can be solved using NPV function in excel.
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Q: Question attached
A: Net Present Worth is the sum of present value of future cash flows.
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A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: What is the present value of the following cash flow stream at a rate of 15.0%? Years: 1 3. CFs: $0…
A: Present value is a current worth of cash flows that are expected to occur in the future.
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A: Present Value = Cashflow/(1 + r)1 + Cashflow/(1+r)2 + ......+ Cashflow/(1+r)n = 600/(1.07)1 +…
Q: 6. Consider the following cash flow series, Aj=1,500 Az=3,000 A3=4,500 A4=6,000 As=7,500 A6-9,000…
A: A1 = 1500, A2 = 3000, A3 = 4500, A4 = 6000 A5 = 7500, A6 = 9000, A7 = 10500 A8 = 12000, A9 = 13500,…
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A:
Q: W $1,000 $1,000 1 3 4 7 End of Year End of Year $1,000
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Q: What value of T makes these two cash-flow diagrams economically equivalent at 8% annual interest?
A:
Q: The investment shown in the following figure has an annual equivalent worthof $200 at i = 8%.…
A: annual worth formula: annual worth=npv ×r1-11+rn
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A:
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Q: Compute the annual-equivalence amount for the following cash flow series ati = 10%:
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Q: Determine the value ofW on the right-hand side of the accompanying diagram (see the given Figure )…
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Q: Q#03: Suppose you have cash flows as follows: End of Year Cash Flows ($) 1 8000 7000 3 6000 4 5000…
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A: Opportunity cost = 14%
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Q: $20,000 now is equivalent to cash flows worth 5X at the end of year 3, 4X at the end of year 4, 3X…
A: present value of each cash flow = cash flow/(1+rate)^n
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- 3. If a capital investment is $28,048 and equal annual cash inflows are 62,605.3, state the internal rate of return factor rounded to two decimal places.) Assuming a 9% cost of capital, find the modified internal rate of return for the following cash flows: a. 19.78% b. 6.95% c. 13.64% d. 7.86% Year Cash Flow 0 1 2 3 -$175 $167 $240 -$120Find the NPV for the following cash flows assuming a WACC of 10%. YR CF 0 -15,000 1 6,000 2 4,000 3 2,000 4 3,000 5 2,000
- What's the FUTURE value of the following cash flows, at 6%/period: 0,200,400,600,800,1000Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %10. Cash Flow Year 0 1 2 3 4 5 6 7 Select one: a.0.245007 b.0.19667 c.0.168017 d.0.204146 e.0.274516 f.0.181262 g.0.228861 h.0.264278 -3000 3000 6000 -1000 2000 4000 -5000 8000Given: Base amount = $500, gradient = -$100, i = 10%, n = 3. For the given values, determine the present worth of the cash flow series in year 0. O $1,147.12 O $1,010.52 O $1,259.20 O $1,098.15
- For the investment shown in the following table, calculate the total return earned over the unspecified time period. Cash flow during period Beginning-of- period value End-of- period value −$10 $3,200 $2,800 The total return on the investment is __%.=NPV(B26,I27:R27)-B24 B26 = discount rate of 9% B24 = initial investment of $30m I27:R27 = yearly cash flows: what are the cash flows for each year?At a rate of 6.5%, what is the future value of the following cash flow stream? $526.01 $553.69 $582.83 $613.51 $645.80
- The investment shown in the following figure has an annual equivalent worthof $200 at i = 8%. Determine the cash flows in periods 2, 3, 5 and 6.Consider the following cash flow year cash flow -1000 TL 2 +300 TL 3 +300 TL 4 +300 TL +300 TL Calculate the rate of return for an investment of 1000 TLQ2. Compute the rate of return on the investment characterized by the following cash flow. Year 0 1 3 4 S Cash Flow -$50.0 +20.0 -40 +36.8 +36.8 +368