2. Mathias Company estimated that it has a 20% probability of receiving $240,000 one year from now, a 30% probability of receiving $240,000 two years from now, and a 50% probability of receiving $240,000 three years from now. Required: Using the FASB's concept of "expected cash flows," calculate the present value of the expected cash flows assuming a 10% interest rate compounded annually

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A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

Q: Calculate the equivalent uniform annual worth for the following set of cash flows. Round your answer…

A: Annual interest rate = 2% Period = 5 Years Initial investment = $ 755 Annual revenue = $ 503

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A: Interest rate = 8% Cash flow in year 5 = $7000 Annual increase in cash flow = 8%

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A: Future value is the compounded value of a present amount after a certain time and on a certain rate…

Q: For the following cash flow diagram, the equation that represents the equivalent at the end of (year…

A: Annuity refers to series of equalized payments that are either made at start or end of specific…

Q: For the cash flows shown, determine the equivalent future worth in year 10 at an interest rate of…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

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A: Cash flow for the series is computed using excel: Result is:

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A: The following information is provided.FV = 20,000,000PV = 5000n = 51 years Annual rate of return can…

Q: Calculate the present worth of a geometric gradient series with a cash flow of $40,000 in year 1 and…

A: Interest Rate = 10% Annual Increase = 6% Initial Cash Flow = 40,000 Time Period (N) = 10 years

Q: Calculate the present value of the following stream of cash flows: cash flows of $7,000, quarterly…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

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A: Future Value: Future value is the value of an asset after a particular period of time, considering…

Q: For the nonconventional net cash flow series shown, the external rate of return per year using the…

A: Computation:

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A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

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A: Computation:

Q: Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8,…

A: Let CFn be the cashflow in year n. CF1 to CF5 = $2000 CF6 to CF8 = $3000 CF9 = $4000 r = 14%

Q: A set of cash flows begins at $20,000 the first year, with an increase each year until n = 10 years.…

A: Information provided: Initial cashflow = $20,000 n = 10 years interest rate = 8%   Present value =…

Q: Consider the following EOY geometric sequence of cash flows and determine the P, A, and F equivalent…

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Q: For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth…

A: The calculation is shown:

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A: Interest rate (r) = 17% per annum  = 1.41667% per month Let cashflows be denoted by CFn. As the…

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A: Introduction: Present Value of cash flows:  It identifies today's value for the future cash flows or…

Q: 1. The following cash-flow streams need to be analyzed: END OF YEAR CASH-FLOW STREAM 1 2 3 4 $100…

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

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A:

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A: Geometric gradient is a series of flow of cash which keeps fluctuating by a perpetual percentage…

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A: The computation of PW is done below:

Q: What is the present worth of cash flows that begin at $30,000 and decrease at 10% per year for 5…

A: Given that , Cash flows = $30,000 no.of years (t)= 5 years  interest rate (r)= 15%

Q: Consider another set of net cash flows:   Year Cash flow 0 1,500 1 2,000 2 0 3 1,500 4…

A: Formulas:

Q: Determine the present worth of the following cash flows if the interest rate is 6% per year:

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Q: For the cash flows shown (in $1000 units), calculate the value of x that makes the present worth in…

A: The present value of a cash flow represents the worth of money at present time. It is also known as…

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A: Calculate discount Factor     Interest rate 8%     Inflation rate 3%     DISCOUNT…

Q: present value

A: Present Value is the computed amount today of either a single sum amount or a series of payments to…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.