Given the following cash flows, determine the net present worth for an annual interest rate of 1%. Round to the nearest dollar. Initial Investment - $5,433 Annual Revenues from year 1 to year 7- $1.746 Costs increasing by $69 each year, starting at $0 in year 2 and ending in year 10 Salvage value of $1,576 at year 10.
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- Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)Determine the present worth of the following cash flows based on an interest rate of 7.23% per year, compounded annually. Round off to two decimal places. End of Year 0 = Php 5930 End of Year 1 = Php 5181 End of Year 2 = Php 5734 End of Year 3 = Php 5458 End of Year 4 = Php 5719 End of Year 5 = Php 5923A certain end of year cash flows are expected to be P 7,000.00 at the end of the 3 rd year, P 9,000.00 at the end of the 4th year, P 11,000.00 at the end of the 5th year, and P 13,000.00 at the end of the 6th year. Using 15% interest per year, determine the equivalent a. present worth at the beginning of the first year and b. uniform annual worth at the end of each year of the 6 years. ANS. P 20,837.60, AND P 5,506.06
- A certain end of year cash flows are expected to be P 7,000.00 at the end of the 3rd year, P 9,000.00 at the end of the 4th year, P 11,000.00 at the end of the 5thyear, and P 13,000.00 at the end of the 6th year. Using 15% interest per year, determine the equivalent a. present worth at the beginning of the first year and b. uniform annual worth at the end of each year of the 6 years. Calculate it manually, not in excel. Show complete solution and formula used. Please don't type it. Write it in a paper so that it can understand well. Thank you!ANS. P 20,837.60, AND P 5,506.06For the cash flows below determine the amount in year 1, if the annual worth in years 1 through 9 is $3500 and the interest rate is 10% per yearGiven the following cash inflow at the end of each year what is the future value of this cash flow at 6%, 9% and 15% interest rate at the end of the seventh year? Year 1 - $15,000 Year 2- $20,000 Year 3- $30,000 Years 4 through 6 - $0 Year 7- $150,000
- Suppose that a certain EOY (end of year) cash flows are expected to be $1,000 for the second year, $2,000 for the 3rd year, and $3,000 for the fourth year and that, if interest is 15% per year, Determine1. Present equivalent value at the beginning of the first year 2. Uniform annual equivalent value at the end of each of the four years.What uniform annual series of cash flows over a 12-year period is equivalent to an investment of $5,700 at t=0, followed by receipts of $810 per year for 11 years, and a final receipt of $1,810 at t= 12 if the investor's time value of money is 7.3% per year? $An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next 4 years. Following is a table for the present value of $1 at compound interest: Year 1 2 3 4 12% 0.943 0.909 0.893 0.870 0.890 0.826 0.797 0.756 0.840 0.751 0.712 0.658 0.792 0.683 0.636 0.572 0.747 0.621 0.567 0.497 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 15% 1 0.943 0.909 0.893 0.870 2 1.833 1.736 1.690 1.626 3 2.673 2.487 2.402 2.283 4 3.465 3.170 3.037 2.855 4.212 3.791 3.605 3.353 5 5 6% 10% % 15% What is the investment's internal rate of return?
- The following cash flow diagram represents an investment of Php 400 and revenue of x at the end of years one and two. Given a discount rate of 15% compounded annually, what must “x” approximately be for this set of cash flows to have a net present worth of zero?An investment of $12,000 was growing at 3.5% compounded semi-annually. a. Calculate the accumulated value of this investment at the end of year 1. Round to the nearest cent b. If the interest rate changed to 3.75% compounded monthly at the end of year 1, calculate the accumulated value of this investment at the end of year 4. Round to the nearest cent c. Calculate the amount of interest earned from this investment during the 4-year period. Round to the nearest centFor the cash flows shown, determine the equivalent uniform annual worth in years 1 through 5 at an interest rate of 18% per year, compounded monthly. Year 1 2 3 4 5 Cash Flow, $ 0 0 350,000 350,000 350,000
