Walt is evaluating an investment that will provide the following cash flows at the end of each of the following years: year 1, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Walt believes that he should earn an annual rate of 9% on this investment. How much should he pay today for the investment?
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Walt is evaluating an investment that will provide the following cash flows at the end of each of the following years: year 1, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Walt believes that he should earn an annual rate of 9% on this investment. How much should he pay today for the investment?
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- Walt is evaluating an investment that will provide the following returns at the end of each of the following years: year l, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Walt believes that he should earn 12 percent compounded annually on this investment. How much should he pay for this investment? What if he expects to earn an annual return of 9 percent compounded monthly? How much should he pay?Walt is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $13,300; year 2, $10,800; year 3, $8,300; year 4, $5,800; year 5, $3,300; year 6, $0; and year 7, $13,300. How much should he pay if he expects to earn an annual return of 9 percent compounded monthly?Zachary has purchased an investment that he expects to produce income of $3,000 at the end of the first year and $4,000 at the end of the second year. If he requires an 8% rate of return compounded annually, what is the maximum amount that he can pay and still earn the required rate of return?
- Chuck Brown will receive from his investment cash flows of $3,165, $3,460, and $3,810 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at the end of three years? (Round to two decimal places.)Fred is considering an investment that will cost him $1000 today and will pay $200 at the end of each month for twelve months with a final cost at the end of the twelve month period of $400. Draw two cash flow diagrams, one showing the cash flows separately and the other showing the net cash flows.An investment promises to pay $7,000 at the end of each year for the next six years and $3,000 at the end of each year for years 7 through 10. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent. If you require a 15 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?$ Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 15 percent required rate of return?$
- Your friend is considering investing $10,000 starting at the end of year 1 in an investment account and this cash flow will then grow at an annual rate of 4%. She plans on ending her contribution to the investment account at the end of year 10. If the annual return on the investment account is expected to be 10%, the future value of this investment at the end of year 10 will be closest to: O $166,667. O $71,550. $185,583. $100,000.Abdullah's current salary is $80,000 per year, and she is planning to retire 25 years from now. He anticipates that his annual salary will increase by 300 each year. He plans to deposit 6% of his yearly salary into a retirement fund that earns 8% interest compounded monthly. What will be the amount accumulated at the time of his retirement? Also draw the cash flow diagram?Arona would like to receive $15,820 each year for the next 5 years, starting today. Then she hopes to receive $17,500 per year at the beginning of the 6th year for an additional 5 years. In total 10 payments. Assume an interest rate of 6%. Find the present value of this cash flow stream. Find the future value of this cash flow stream.
- Mr.Andi is a manager at an automation company. As part of his future planning, Mr.Andi plan to manage an investment IDR 100 thousand in the first year and increase this amount is 10% annually. To solve this problem, you have to create a spreadsheet from the data provided to complete your calculations along with the cash flow. Based on the data given: (a) How long will Mr.Andi's account have value in the future of IDR 3,000,000 at a rate of return of 6% per annum? (b) If Mr.Andi counts up to the next 30 years, find the nominal amount in the next 10, 20, and 30 years that Mr. Andi will achieve. The calculation spreadsheet can describe the amount deposited annually.Arona would like to receive $15,820 each year for the next 5 years, starting today. Then she hopes to receive $17,500 per year at the beginning of the 6th year for an additional 5 years. In total 10 payments. Assume an interest rate of 6%. Find the present value of this cash flow stream. 2. Find the future value of this cash flow stream please use formula or any necessary diagram. please provide steps and explanationBrandon is scheduled to receive payments of $1,200 each month for the next 2 years, with the first payment beginning today. How much can Brandon expect to have at the end of year 2 if he is able to invest these cash flows at a rate of 8% assuming monthly compounding?