Ahmed has recently invested his money and is expecting the following cash flows at the end of each of the next three years, 788, 737 and 742 respectfully. This will be followed with a constant return of 492 from year 4 till 6. Using a discount rate of 5% find the PV of this cash flow.
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Ahmed has recently invested his money and is expecting the following cash flows at the end of each of the next three years, 788, 737 and 742 respectfully. This will be followed with a constant return of 492 from year 4 till 6. Using a discount rate of 5% find the PV of this cash flow.
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- Attach a complete solution. Draw the cash flow diagram.Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded quarterly. How much would be accumulated in his fund by the end of the 4th year? The first payment occurs at time zero (now).Next year, you will begin receiving $173 per year in perpetuity from a family trust fund (first payment is exactly 1 year from today). You have decided to discount these cash flows at a constant interest rate of 5.8%. What is the present value today of these future cash flows?Consider two streams of cash flows, A and B. Stream A's first cash flow is $10,000 and is received three years from today. Future cash flows in Stream A grow by 3 percent in perpetulty. Stream B's first cash flow is -$8,900, is received two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 11 percent. a. What is the present value of each stream? (A negative amount should be indicated by a minus sign. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Stream A Stream B b. Suppose that the two streams are combined into one project, called C. What is the IRR of Project C? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % c. What is the correct IRR rule for Project C? Accept the project if the discount rate is equal the IRR. O Accept the project if the discount rate is above the IRR. Accept the project if the discount rate is…
- You will receive the following cash flows at the end of each year for the next 5 years. Year 1: $1,500; Year 2: $3,500; Year 3: $9,500; Year 4: $0; Year 5: $1,500. You can invest the money at an annual return rate of 8%. What is the present value of this stream of future cash flows? Group of answer choices $12,325.07 $12,951.86 $13,033.53 $13,988.00Francisco expects to receive $ 27483 in 36 years from now. the relevant discount rate is 18.3 % (EAR). Determine the value of that expected cash flow for Francisco as of today.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 explanation
- Consider two streams of cash flows, A and B. Stream A’s first cash flow is $9,800 and is received three years from today. Future cash flows in Stream A grow by 3 percent in perpetuity. Stream B’s first cash flow is −$9,100, is received two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 11 percent. a. What is the present value of each stream? b. Suppose that the two streams are combined into one project, called C. What is the IRR of Project C?Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded quarterly. How much would be accumulated in his fund by the end of the 4th year? The first payment occurs at time zero (now). Please draw a cash flow diagram. Thank youArona 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.
- Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12 payments are made into the account, how much would be accumulated in his fund by the end of the 12th year? The first payment occurs at time zero (now). Draw a cash flow diagram too.Assuming Paulin will receive: Years 1 through 3 = $1000PHP 1,500 a year Years 4 through 6 = $1000PHP 1,500 a yearYears 7 through 9 = $1000PHP 1,500 a year with all cash flows to be received at the end of the year. If Pauline requires an 11% rate of return, what is the present value of these cash flows?Suppose you receive$130 at the end of each year for the next three years. a. If the interest rate is10%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in(a)? c. Suppose you deposit the cash flows in a bank account that pays 10%interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?