a. What is the present value of the following set of cash​ flows, discounted at 10.6% per​ year?   Year 1 2 3 4 5 CF $11 $21 $31 $41 $51   b. What is the present value of the following set of cash​ flows, discounted at 10.6% per​ year?   Year 1 2 3 4 5 CF $51 $41 $31 $21 $11   c. Each set contains the same cash flows ​($11​, $21​, $31​, $41​, $51​), so why is the present value​ different?

Q: What is the IRR of the following set of cash flows? (Do not round intermediate calculations and…

A: Year Cash flow 0 -17100 1 7800 2 9100 3 7600

Q: In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams…

A: Future value refers to the value of the current deposit of the amount or series of deposit at some…

Q: An arithmetic cash flow gradient series equals $800 in year 1, $900 in year 2, and amounts…

A: A cash flow series is a series of equal payments, that is, in a cash flow series there are regular…

Q: Consider the mixed streams of cash flows shown in the following table. YEAR A B 1 $50,000 $10,000 2…

A: We need to calculate present value future cash flows using this formula PV =FV(1+r)n Where PV…

Q: consider the cash flow series given. In computing the equivalent worth at n-4, which of the…

A: From the given equations of the and the series of cash flows, we have to find out the incorrect…

Q: Consider the following cash flows:   Year Cash Flow 0 −$28,300       1 15,400       2 13,500       3…

A: The profitability index is the ratio between the present value of future cash flows and the initial…

Q: Year Cash Flow 0 –$ 17,700   1   10,000   2   8,900   3   5,400        a. What is the…

A: The formula to compute profitability index:

Q: Consider the following cash flows: Year Cash Flow -$29,900 13,800 15,100 11,500 1 3 a. What is the…

A: Profitability index measures the return generated by each dollar of investment. Itcan be calculated…

Q: Analyze below Cash Flow and compute for the unknown value. ... EOY (end of year) $5 $5 $5 $10 $15…

A: Here, Interest Rate (r) is 10% Compounding Period (m) is Semi Annual i.e 2 Payment Period (p) is…

Q: What is the payback period for the following set of cash flows? (Round your answer to 2 decimal…

A: Payback period is the time period in which the initial cash flows will be recovered in absolute…

Q: The Present Value of a Complex Cash Flow Stream What is the present value of cash flows of $500 at…

A: Present value of a complex cash flow stream is computed by adding present value of all the cash flow…

Q: Required: a. What are the operating cash flows in each year? b. What are the total cash flows in…

A: Calculation of operating cash flow and total cash flows 1 to 5 years Particulars Year 1 Year 2…

Q: The following cash flow diagram represents an investment of Php 400 and revenue of x at the end of…

A: In order to have net present worth to be zero, Present value of end of year cash flows = Initial…

Q: For the given cash flow if equivalent cash in equals equivalent cash out. Find the value of W, i-12%…

A: Notes: The question states that all equivalent cash inflows equal all equivalent cash outflows.…

Q: For the following incremental cash flow series, what is the maximum number of i* values accord- ing…

A: A project may have multiple IRRs if there are variation in cash inflows and outflows. If there are…

Q: An arithmetic cash flow gradient series equals $600 in year 1, $700 in year 2, and amounts…

A: Present worth is the sum of the discounted values of all the future cash flows.

Q: What is the present value of the following cash flow stream at a rate of 15.0%? Years: 1 3. CFs: $0…

A: Present value is a current worth of cash flows that are expected to occur in the future.

Q: What is the present value of the following cash flow stream at a rate of 8.0%?   Years:   0…

A: Formula: PV factor = 1 / ( 1 + r )N

Q: What is the present value of the following set of cash flows at a 10% discount rate? Year Cash flow…

A: Determination of Present value is one of the techniques used by the entity so as to make the…

Q: How much is the net present value of the Net Cash Flows, using VALUATION CONCEPTS 5. Pawikan Corp.…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: a. What is the present value of the following set of cash flows, discounted at 9.3% per year? Year 1…

A: Companies are invested into projects for the purpose of expecting some cash flows. The projects are…

Q: What is the present value of the following cash flow stream at a rate of 8.0%? Years 0 1 2 3 4 Cash…

A: Present value is calculating by discounting the cash flows at required rate of return i.e. 8%.

Q: What is the present value of the following set of cash flows at an interest rate of 6% p.a.…

A: Present Value:  The present value (PV) is the present sum of a series of fixed payments. The series…

Q: What is the present value of the following cash flow stream at a rate of 6.25%? Years 1 2 3 4 Cash…

A: Discount rate = 6.25% Year Cash flow 0 0 1 75 2 225 3 0 4 267.8

Q: Draw a cash flow diagram given the following data and determine the values of P and F. Length of…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: What is the present value of the following cash flow stream at a rate of 12.00%?   Years: 0 1 2…

A: Present Value Present value is the present worth of any sum of money to be received in the future at…

Q: What is the present value of the following cash flow stream at a rate of 15.0%? Years:…

A: Present value of cash flows means value as on date of all the future cash flows that are to be…

Q: Consider the following cash flows: Year Cash Flow 0 –$ 34,000 1 13,600 2…

A: Year Cash flow 0 -34000 1 13600 2 18100 3 11000

Q: Given the following sensitivity analysis, which of the following statements is true?

A: While choosing which investment should be undertaken, different techniques are used. Techniques used…

Q: What is the IRR of the following set of cash flows? (Do not round intermediate calculations and…

A: Given: Year Cash flow 0 -$17,300 1 $8,000 2 $9,300 3 $7,800

Q: Consider the following cash flows: Year Cash Flow 532,000 14,200 17,500 11,600 What is the IRR of…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: 1. Find the present value of the following cash flow streams under the following conditions: Year…

A: Cash flow streams refers to the series of cash flows whether cash inflows or cash outflows incurred…

Q: Analyze below Cash Flow and compute for the unknown value. ... 2 3 4 7 8 9 10 EOY (end of year) $5…

A: Interest rate = 10% semiannually compounded Let CFn = Cashflow in year n n = 10 years

Q: Calculate the internal rate of return (IRR) of the following cash flows:           Year 0 1 2 3 4 5…

A: Solution: Computation of IRR Year Cash Flows  IRR 0 -$1,650,000.00 12.38% 1 $330,000.00 2…

Q: Consider the cash flows in actual dollars given in the table below. Use the adjusted-discount method…

A: Inflation free interest rate (i') = 10% Inflation rate (f) = 5% Let i = Inflation adjusted interest…

Q: In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams…

A: Rate ie. i =12% We have to find the Present Value of 1st diagram and then we have to calculate the…

Q: Which of the following is closest to the present value of a cash flow of $1,000 occurring in 7…

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

Q: For the given cash flow, Which of the following statements is correct? Year +2,000 -500 -8,100…

A: Multiple IRR occurs when the project has unconventional cash flow, i.e when the cash flow are…

Q: For the arithmatic gradient of cash flow given below, if G= $550 , the value at year 23(V23) is:…

A: Value at year 23 = ? Interest Rate = 5% First Cash Flow = 1800 G = 550 N = 23

Q: Consider the following information: · Net income = $100 000 · Gross income = $300…

A: Discounted cash flow model: The discounted cash flow (DCF) technique of valuing an investment is…

Q: 650 540 к к 430 320 210 100 2 3 4 1 2 3 5 6 7 LO 4.

A: Cash flow diagram is a time line showing all the cash inflows and cash outflows at each time…

Q: In the following cash flows diagram, Determine the value of F that makes the two cash flows diagrams…

A: We have to calculate the future value of 1st four cash flows till the end of 5 the year and the…

Q: An arithmetic cash flow gradient series equals $350 in year 1, $450 in year 2, and amounts…

A: The cash flows that decrease or increase by the same amount is known as arithmetic cash flows.

Q: . What is the present value of the following set of cash flows, discounted at 9.3% per year? Year 1…

A: Note: As per our guidelines, we can only answer one question at once. Since, you haven't…

Q: What is the present value of the following cash flow stream at a rate of 6.50%?   Years: 0 1 2 3…

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

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.