Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- For each of the following annuities, calculate the annual cash flow: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Cash Flow Present Value Years Interest Rate $ 33,100 6 10 % $ 30,700 8 8 $ 170,000 17 13 $ 243,300 24 12arrow_forwardAn arithmetic cash flow gradient series equals $600 in year 1, $800 in year 2, and amounts increasing by $200 per year through year 5. At i = 6% per year, determine the factor from the compound interest factor table that is used to calculate the equivalent annual worth of the revenue through year 5. Multiple choice question. A. 4.212 B. 5.637 C. 1.884 D. 7.934arrow_forwardFor each case, provide the missing information. Assume payments occur at the end of each period. (Use the present value and future value tables, the formula method, financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places X.XXXXX. Round all final answers to the nearest cent, $X.XX, and round the loan maturity date to the nearest whole year.) (Click the icon to view the cases.) Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Cases Amount borrowed Interest rate Number of periodic payments per year Maturity (in years) Periodic payment (1) (a) 4% 4 10 $ 10,354.90 (2) $ 675,000 $ 4% 2 10 (b) S CO (3) 456,000 6 % 1 (c) 81.685.59 (4) $ 750.000 12 % T (d) I Xarrow_forward
- What is the payback period for the following set of cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Year 01234 Cash Flow -$ 5,700 1,350 1,550 1,950 1,450 Payback period yearsarrow_forwardplease determine the rate of return of the cash flows shown in the table below. Year 0 1 2 3 4 Cash flow -3,000 1,000 900 900 900arrow_forwardConsider the following cash flows: Year 01234 Cash Flow -$5,100 1,500 2,600 1,300 1,000 What is the payback period for the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Payback period yearsarrow_forward
- Vijayarrow_forwardUSING EXCEL SHOW HOW TO SOLVE THE FOLLOWING:arrow_forwardFor each of the following annuities, calculate the annual cash flow. (Enter rounded anware adirected, but do not use rounded numbers in intermediate calculations. 2 nswers to 2 decimal places (e.g., 32.16).): Years Cash Flow Present Value Interest Rate $ 36,800 27,500 145,000 215,000 11% 6 8 8 15 6 20arrow_forward
- Given the following cash flows in table below, determine the rate of return to the nearest second decimal place. Year 0 1 thru 3 4 thru 5 6 thru 10 Cash flow -23K 2K 3K 4Karrow_forwardSingle Cash Flow Present Value Inputs Single Cash Flow $1,000 Discount Rate/Period 6% Number of Periods 5 Present Value using a Time Line Period 1 2 3 4 Cash Flows Present Value of Each Cash Flow Present Value Present Value using the Formula Present Value Present Value using the PV Function Present Valuearrow_forwardCan you please confirm my calculations: discount rate is 6%; end of year cash flows are as follows: Year 0: -20,000; year 1 through 5 are each 5,000; is the net present value of all cash flows 1061.82? and how do you calculate "at what discount rate is the net present value "0"?arrow_forward
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