Consider the following cash flows. The interest rate is 10%. What is the duration (hint: you need PV)?   Year 0 1 2 3 4 Cash flow   150 120 100 200

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A: Perpetual are the annuities that pay the payment forever and there is payment for always and that…

Q: What is the present worth of the following cash flow if the interest rate is 15%? Year 1 Payment 2 3…

A: NPV can be calculated by following function in excel=NPV(rate,value1,[value2],…) + Initial…

Q: Determine the future equivalent value of the following cash flow pattern when interest is 6% per…

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A: The objective of this question is to find the future equivalent of a geometric series of cash flows…

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Q: What is the NPV of the following cash flows if the required rate of return is 0.06? Year 0 1 2 3 4…

A: Net present value (NPV) is the difference between present value of cash inflows and cash outflows…

Q: B. Calculate the Annual worth of the following cash flow at interest rate equals 7%? 0 25000 1 2…

A: Step 1 The annual worth is the sum of all the advantages and expenses over the course of a year.

Q: rejecting it? LO 3 8. Calculating IRR What is the IRR of the following set of cash flows? Year Cash…

A: Net Present Value: Net present value (NPV) is the excess of present value of cash inflows over the…

Q: Use the MIRR Method to find the External ROR for the nonconventional net cash flow series shown,…

A: YearsNon-conventional Cash Flows (NCF)0($40,000)1$13,0002($29,000)3$25,0004$50,000Investment…

Q: 0 1 2 2,000 2,000

A: Present value of cash flow is current period value of a future sum. We can calculate the present…

Q: You are planning to withdraw $500 at the end of year 3, $700 at the end of year 4, and $900 at the…

A: Present value is the current value of future cash flow estimated through the discounted rate of…

Q: Find the size of B in the following cash flow diagram if the interest is 8% per year. $130 1 H 2…

A: Data given: Rate=8% Arithmetic gradient from year 1 to 5= - $20

Q: At the 6 percent discount rate what will be the present value of the two-period stream of cash…

A: Cash flow streams are the series of cash flows whether cash inflows or cash outflows incurred by a…

Q: Consider a geometric series of cash flows whose first cash flow occurs at time 15 and continues…

A: We will apply the required formula assuming that the increase rate has a geometric gradient of @10%…

Q: Calculate the present value of the following cash flow diagram at 10% interest rate (you must use…

A: Present Value is the current price of future value which will be received in near future at some…

Q: For the following cash flow, if the interest rate i=10%, the present value is closest to: Year 1 2 3…

A: Present value is the sum of money of future cash flows today whereas future value is the value of…

Q: For the following stream of free cash flows, calculate the npv if the discount rate is 12.5%

A: Net Present Value: It is the difference between the cash outflow and the discounted cash inflows.…

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A: The current worth of an annuity is the current worth of future installments from an annuity, given a…

Q: 10. Consider the following cash flow series at varying interest rates. Interest rates: Between 0 to…

A: Interest rate in year n = rn r1 = 5% r2 = 8% r3 = 10% r4 = 6% Cashflow in year n = CFn CF1 = $1000…

Q: Determine the value of X that makes the following two cash flow diagrams equivalent when the interes…

A: Given, The cashflow diagrams that are equivalent at r=10% per period.

Q: 3. Find the unknown value of “A" from the cash flow diagram shown below. For the computation use an…

A: According to the given information: Outflows = 22,000 n= 5 years i = 5%

Q: Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000.  Cash…

A: Cash flow at time 5 = $ 5000Annual growth in cash flow =-7%Number of cash flows = 9Future value…

Q: For what value of n, based on a 5% interest rate, do these cash flows have a present value of 0?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: 5. The following two mutually exclusive alternatives are being considered." Year A B 0 1 2345 -$3000…

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Q: P₁ =? 2000 U 1000 U 1 3000 U 2 3 i= 15%

A: The present value of the investment can be calculated using an appropriate discount rate. Present…

Q: Consider the following cash flows. The interest rate is 8%. What is the duration (hint: you need…

A: Interest rate = 0.08   Cash flow duration is the weighted-average time to maturity of the cash…

Q: Р450 Р370 Р290 Р210 Р130 Р50 Р50 3. i = 10% F

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

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A: Given information : Year Net cash flow 0  $ -22,000.00 1  $     4,500.00 2  $   12,670.00…

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A: Any cash flow can be represented by equivalent uniform series that can be found by present value…

Q: For the following stream of free cash flows, calculate the NPV if the discount rate is 11.9%. Year…

A: It is the difference between the cash outflow and the discounted cash inflow. The usual rule of NPV…

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A: Year Cash Flow Interest % for discounting in year 1 1000 8% 2 2000 10% 3 0 8% 4 1000 6% 5…

Q: a given cash flow diagram, if the interest rate i=10% , and A=$600, th F=? A Years 2 i=10 %

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Q: Consider the cash flow shown in the accompanying diagram. If the value of C is $937, calculate the…

A: The PV of an investment refers to the collective value of the cash flows of the investment assuming…

Q: ou are given the following cash flows. What is the present value (t = 0) if the discount rate is 12…

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Q: find the equivalent value of this cash flow at year 5 where i=5%

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Q: A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of…

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Q: What's the FUTURE value of the following cash flows, at 6%/period: 0,200,400,600,800,1000 (Oh man!…

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Q: 7. Consider a geometric series of cash flows whose first cash flow occurs at time 1 and continues…

A: Future value (FV) of growing annuity refers to an annuity which shows the future or expected value…