Determine the present value in year zero of a gradient series that begins with a cash flow of $7,000 in year 5 and has annual increases in 8% each year through year 12. Assume the interest rate is 8% annual.

Q: Find the present worth of all the cash disbursements using gradient interest formulas if money is…

A: First payment=P5000Gradient=P1000Number of payments=4Interest rate=15%

Q: then the present value factor of the lumpsum is:

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: The function f(x) = 600 represents the rate of flow of money in dollars per year. Assume a 10-year…

A:

Q: The present worth of a decreasing geometric series is 96157$. The interest rate is 8% per year and…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: determine the equivalent a. present worth at the beginning of the first year and b. uniform annual…

A: Net Present Value: It is the present worth of the annual cash flows and the initial cost of the…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: 1. Consider the cash flow series shown below. Determine the required annual deposits (end of year)…

A: STEP 1:Here the given data is: -Money deposited in year 4 = $1000Money deposited in year 5 =…

Q: For the cash flows below determine the amount in  year 1, if the annual worth in years 1 through 9…

A: Annual Cash flow (CF) = $3500 Interest rate (r) = 0.10 Period (n) = 9 Years Amount in year 1 (P1) =…

Q: Consider the following three cash flow series: Determine the values of X and Y so that all three…

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

Q: 2. What is the future worth of P600 deposited at the end of every quarter for 4 years if the…

A: The value of an asset at a specific date is referred to as its future value. It is the present value…

Q: You have cash flows of $100 at the end of year 1, $200 at the end of years 2 and 3, and $300 at the…

A: The problem requires the determination of the present value of the cash flows using discounting and…

Q: A stream of annual cash flows will begin 10 years from now and end 20 years from now. The initial…

A: Present value is a financial concept that represents the value of a future sum of money in terms of…

Q: Suppose a company had an initial investment of $40,000. The cash flow for the next five years are…

A: Discounted payback period refers to the time taken for the recovery of the initial investment after…

Q: annual payment from a cash flow is expected to grow 4% per year from year 1 to year 10, after which…

A: The present value of cash flow would be the equivalent value today that is equivalent to cash flow…

Q: What will be the future value of the following cash flows by the end of the fifth year, if the…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: What is the future value of a stream of receipts that is $1,000 in year 1 and which increases by 4%…

A: The future value of this stream of receipts can be calculated using the future value of an annuity…

Q: What uniform annual series of cash flows over a 12-year period is equivalent to an investment of…

A: Years (t)Cash…

Q: ume that time zero is now and the effective interest rate per year is 14%. 1. What is the present…

A: The given problem can be solved using PV function in excel. PV function computes present value for…

Q: Draw a Cash Flow Diagram for P10,535 being loaned out at an interest rate of 12% per year over a…

A: Simple Interest per annum = Principle * Rate * Time = P10,535 * 12% * 1 = 1264.2   Cash flow diagram…

Q: worth of a ten year geometric gradient series of cash flows was found to be $100,000. If the…

A: Future value of growing annuity can be found out from the growth rate and interest rate and period…

Q: After tax cash flows are 100,000 a year for 5 years. There is no terminal value. The payback period…

A: Initial Investment = cashflow per year × payback period                             =100000 × 3=…

Q: A set of cash flows begins at $66660 the first year, with an increase of 10% per year for 9 years.…

A: The present value of cash inflows refers to the current value of future cash inflows that are…

Q: Construct a cash flow diagram that represents the amount of money that will be accumulated in 1 year…

A: Initial Investment is 6% The time period is 1 year The interest rate is 6% per year compounded…

Q: Consider a cash flow that lasts for ten years. the initial value A occurs at the third year,…

A: The time value of money becomes an important factor for capital budgeting decisions. It is an idea…

Q: Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EDY one is…

A: Here, Initial Value of cash flow of first case is $5188 Geometric gradient interest rate is 6% Cash…

Q: You deposit $10,000 in an account that pays 4.5% interest compounded quarterly. Use the future value…

A: Interest rate (r) = 4.5% compounded quarterly Hence, compounding frequency (k) = 4

Q: Dosky expects to receive GHȼ300, GHȼ500, GHȼ1000 and GHȼ1500 in year1,2,3 and 4 respectively. What…

A: Cash flow Year 1 = 300 Cash flow Year 2 = 500 Cash flow Year 3 = 1000 Cash flow Year 4 = 1500…

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is…

A: Present worth is the sum total of present values of all future cash flows. It is calculated as…

Q: Find the annual worth in years 1 through 10 of an investment that starts at $8000 in year 1 and…

A: PV of single growing cashflow = (C(1+g)n)/(1+r)n Where C = cashflows = $8000 r = interest rate = 10%…

Q: Order the present values of these three cash flow with highest PV on top, middle PV in the middle,…

A: Present value factor is computed as follows:-present value factor = wherer= interest rate n= time…

Q: Consider a cash flow that lasts for ten years. the initial value A occurs at the third year,…

A: Present Value of series = 34,717 Interest Rate = 8% Annual Growth Rate = -6% Cash flows start at end…

Q: annual cash flow f

A: Annual cash flows refer to the income of the company before deducting any interest, taxes,…

Q: The income stream b = (1000, 1500, 2500, 4000) consists of payments made at the end of the next four…

A: The present value is calculated by discounting the cash flows at an appropriate discount rate for a…

Q: What is the present value of a perpetual stream of cash flows that pays 20,000 at the end of year…

A: In the given case, we have provided the expected cash flows in Year 1, perpetual growth rate and the…

Q: 6. Determine the accumulated balance: $1200 invested in an account that cams interest at an APR of…

A: Future value of the investment  that is compounded continuously can be calculated using the…

Q: Find the present worth today (end of year 0) of a gradient series that begins at year 1 at $100 and…

A: The following formula shall be used for present worth calculation Present value(PV) =PV of single…

Q: An investment of $4,000 accumulates at a force of interest δt = 0.022t. Calculate the annual…

A: In order to solve for the rate of interest it is important to solve the equation given.

Q: find the present value of a stream of payments that begin in year one at $3000 and increase by 10%…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

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.