Am. 121. Different cash flow. Given the following cash inflow at the end of each year, what is the future value of this cash flow at 5%, 12%, and 15% interest rates at the end of year 7?.What is the future value of this cash flow at 5% interest rate at the end of year 7?(Round to the nearest cent.)Data table(Click on the following icon in order to copy its contents into a spreadsheet.)Year 1:Year 2:$16,000$18,000$29,000Years 4 through 6:Year 7:$0$160,000Year 3:PrintDone- X

Step 1:We have to calculate the future value of the cash flows at the interest rate of 5%.The…

Answered: Different cash flow. Given the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1. Consider the following cash flow payments: An income of $2000 at the end of year 2, an income of $5000 at the end of year 4, an expense of $3000 at the end of year 8, and a final income of $4000 at the end of year 10. (a) Draw the cash flow diagram for the cash flow payments. (b) Write an expression: what is the present equivalent value of these payments over the 10-year period assuming an interest rate of 10% per year. Just write down the expression like "e.g. P = 1,000 (P/F, 4%, 10) + 2,500 (P/A, 4%, 5)-4,000". You don't need to calculate the final numerical answer. (Hint: you can write out the present equivalent value for each cash flow, and then sum them up.)
Different cash flow. Given the following cash inflow at the end of each year,, what is the future value of this cash flow at 6%, 8%, and 15% interest rates at the end of year 7? What is the future value of this cash flow at 6% interest rate at the end of year 7? (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) $13,000 $18,000 $32,000 $0 $150,000 Year 1: Year 2: Year 3: Years 4 through 6: Year 7: Print Done I Xx
Determine the value of W on the right-hand side of the accompanying diagram that makes the two cash-flow diagrams equivalent when /=9% per year. Q $1,150 30 1 2 End of Year $1,150 3 4 5 $1,150 W Click the icon to view the interest and annuity table for discrete compounding when i=9% per year. End of Year The equivalent amount, "W", of the cashflows provided in the diagram is $ 1739. (Round to the nearest dollar.) W OU
The net cash flow diagram of a tradesman's account based on his work is given above. a) According to this cash flow diagram (when n=12 years), calculate the current (at time 0), year 7 and year 12 values of the total money, taking into account the specified interest rate. b) When n=60 years indicated in the figure, n. what will be the value in the year (flow values and trend remain the same)? Note: Show your calculations step by step.
Need answers ASAP... If P100 is deposited in a savings account that pays 6% annual interest, what amount has accumulated by the end of the eighth year? How much of this is interest and how much is principal? Draw the cash flow diagram.
What is the payback period for the following set of cash flows? (Round your answer to 2 decimal places, e.g., 32.16.) Cash Year Flow $5,500 1 1,275 1,475 1,875 1,375 3 4 Payback period years
Present value For the case shown in the following table, calculate the present value of the cash flow, discounting at the rate given and assuming that the cash flow is received at the end of the period noted. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) The present value is $. (Round to the nearest cent.) Single cash flow $91,000 Discount rate 15% C End of period (years) 25
What is the payback period for the following set of cash flows? (Round your answer to 2 decimal places, e.g., 32.16.) Year Cash Flow 0 –$ 4,700 1 1,100 2 1,300 3 2,125 4 1,200
Present value For the case shown in the following table, calculate the present value of the cash flow, discounting at the rate given and assuming that the cash flow is received at the end of the period noted. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Single cash flow $7,000 The present value is $ (Round to the nearest cent.) Discount rate 12% End of period (years) 4
Question: Use the following information to answer the next two questions: You deposited the following stream of cash flow at the end of the year: Year deposit rate of interest 1 5000 8% 4 4000 8.5% 6 7000 10% What will be the total amount in your account at the end of 6 years? 2. What is the present value of your deposit?
Question 1 How much money should be deposited each year for 6 years starting 1 year from today, if you wish to withdraw $5604 each year for 9 years, beginning at the end of 15 years? Let i=12% per year. Round your answer to 2 decimal places. Upload the picture of your solution in Question 1 including cash flow diagram.
The annual worth for years 1 through 8 of the cash flows shown is $30,000. What is the amount of the cash flow labeled x in year 3, if i = 10% per year? Solve using (a) tabulated factors, and (b) a spreadsheet.

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