Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Consider the following cash flows: Year Cash flow 0 -25000 1 7000 2 6000 3 5000 4 3000 5 3000 6 1500 7 1500 8 500 Compute the rate of return represented by the cash flows.arrow_forwardUse the table of cash flows given below for problems 3 and 4. Year Cash Flow 1 $1,965 2 $1,235 3 $1,510 4 $1,075 3. Find the present value of the cash flows if the interest rate is 8%. 4. Find the future value of the cash flows in year 4 if the interest rate is 8%arrow_forwardGiven the following cash flow, what would be the value of P if the inflows and outflows balance each other at an interest rate of 6%? Year 0 Inflows $5,000 Outflows 1 ($4,500) 23456 4P -12P 8P 16P ($7,500) 7 8 24P OO $173 $238 $268 $291arrow_forward
- Consider the following timeline: Date 0 i + $500 2 OA. $666. B. $605. C. $500. OD. $650. 3 Cash flow If the current market rate of interest is 10%, then the future value of the cash flows on this timeline is closest to:arrow_forwardhelp mearrow_forwardConsider the accompanying cash flow series at varying interest rates. What is the equivalent present worth of the cash flow series? (a) P = $5,068(b) P = $4,442(c) P = $4.745(d) P = $3.833arrow_forward
- 8. Calculating IRR What is the IRR of the following set of cash flows? LO 3 Year Cash Flow -$19,400 1 10,400 9,320 6,900arrow_forward4. Based on the interest rates and cash flows shown in the cash flow diagram, determine the value of $X. $10,000 ↑ 4 5 6 Tovui 3% 3% 3% 5% 5% 5% 5% 4% 4% 4% $150,000 1 2 3 7 8 $X 9 10arrow_forward1. Discounted Payback (DCPB) and IRR analysis. Use the cash flow situation (table below) to answer. a. Determine the DCPB based on a MARR rate of 8.0% b. Determine the IRR Year Cash Flow (in $1000's) 0 1 -5500 +1500 2 +1800 3 +1500 4 +1800 5 6 +1500 +1800 7 +1500arrow_forward
- Which of the following cash flows has the highest future value? A. $1000 invested for two years in the future when the interest rate is 4% ⚫B. $1000 invested for two years in the future when the interest rate is 6% • C . $1000 invested for three years in the future when the interest rate is 4% ⚫ D. $1000 invested for three years in the future when the interest rate is 6%arrow_forwardFor what value of X would the cash flow have a present value of -$4,900 assuming the money was invested in an account earning 4% interest compounded annually? $2,200 O tA $ i = 4% 1 $2,500 2 Click here to access the TVM Factor Table calculator. $3,500arrow_forwardConsider the following cash flows: Year 0 1 2 3 4 Cash Flow -$ 8,000 2,250 5,300 2,050 1,750 What is the payback period for the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Payback period years M Prev 1 of 5 Next > tubiarrow_forward
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