Assume that an Investment provides the following cash Inflows over a three-year perlod: Year 1 $ 5,000 Year 2 5,000 Year 3 7,000 $ 17,000 Total Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 11%, what Is the present value of these cash Inflows? Multiple Cholce $13,682 $12.882 $11,982 $13,282

Assume that an Investment provides the following cash Inflows over a three-year perlod: Year 1 $ 5,000 Year 2 5,000 Year 3 7,000 $ 17,000 Total Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 11%, what Is the present value of these cash Inflows? Multiple Cholce $13,682 $12.882 $11,982 $13,282

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 29P

See similar textbooks

Similar questions

Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two, $2,500 in year three, $3,000 in year four and $2,000 in year five. What is the NPV using 8% as the discount rate?
Assume that an investment provides the following cash inflows over a three-year period: Year 1 Year 2 Year 3 Total $5,000 5,000 7,000 $ 17,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 17%, what is the present value of these cash inflows?
Mendez Company has identified an investment project with the following cash flows. Year 1 Cash Flow $870 1,230 234 1,490 1,650 a. If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 20 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 30 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 10% b. Present value at 20% c. Present value at 30%
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $7,000 $ 10,000 2 8,000 3 9,000 4 10,000 $ 34,000 9,000 8,000 7,000 $ 34,000 The discount rate is 7%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment.
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 4,000 $ 1,000 2,000 2 3,000 3 3,000 2,000 4 4,000 1,000 $ 10,000 $10,000 The discount rate is 9%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. Present Value of Cash Flows Year Investment A Investment B 1 2 P 3 4
Wainright Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 720 2 930 3 1,190 4 1,275 If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18 percent? What is the present value at 24 percent?
What is the present value of the following stream of cash flows if the discount rate is 9%? Year 1-5: $14,000 inflow Years 6-20: $23,000 inflow (Use the present value tables in your course packet for any present value calculations. Round your final answer to the nearest dollar.)
Mendez Company has identified an investment project with the following cash flows. Year 1234 Cash Flow $ 1,170 1,060 1,530 1,890 a. If the discount rate is 12 percent, what is the present value of these cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the present value at 15 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the present value at 21 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Present value at 12 percent b. Present value at 15 percent c. Present value at 21 percent
You are asked to evaluate an investment project with the following cash flows: Year 1 234. 2 4 Cash Flow $800 1,090 1,350 1,475 a. If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 7% b. Present value at 17% c. Present value at 25% $ 3,926.98
Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 $770 2 1,030 3 1,290 4 1,400 a. If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Compute the payback period for an investment with the following net cash flows. (Round your answer to one decimal place.) Net Cash Flows Cumulative Net per Year $ (101,000 ) 10,100 20,100 20,100 26,640 40,100 40,100 Cash Flows $ (101,000) (90,900) (70,800) (50,700) (24,060) 16,040 56,140 Year Initial investment 1. 2. 3. 5. 6. Payback period years
Annual cash inflows that will arise from two competing investment projects are given below: Investment A $ 3,000 4,000 5,000 6,000 $ 18,000 Year 1 2 3 4 The discount rate is 10% Click here to view Exhibit 148 1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables Required: Compute the present value of the cash inflows for each investment Year 1234 S S Investment B $6,000 5,000 4,000 3,000 $18,000 Present Value of Cash Flows Investment A 300 300 $ Investment B