($ thousands)Present value at 19%Net cash flowNet present value014-13,700-1,594-13,700 -1,3393,541 (sum of PVs).Period2363,057 6,433 10,644 10,095 5,8672,159 3,817 5,308 4,230 2,066573,3791,000Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 19% nominal rateand 11% expected inflation. NPV should be unchanged at +3,541, or $3,541,000.Note: Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers inthousands rounded to the nearest whole number.Year 0Year 1Year 2Year 3Year 4Year 5Year 6Year 7Real Net Cash FlowsNPV

Net present value refers to the method of capital budgeting used for evaluating the viability of the…

Answered: ($ thousands) Net cash flow Present…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Net cash flow Present value at 20% Net present value (s thousands) Period 0 -13,100 1 2 3 4 5 6 7 -1,534 2,997 6,373 10,584 10,035 5,807 -13,100 -1,278 2,081 3,688 5,104 4,033 1,945 3,319 926 3,399 (sum of PVs) Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 20% nominal rate and 10% expected inflation. NPV should be unchanged at +3,399, or $3,399,000. Note: Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Real Net Cash Flows NPV $ (13,100)
($ thousands) Net cash flow Present value at 20% Net present value Period 0 -13,100 1 2 3 4 5 6 -13,100 -1,534 -1,278 2,997 6,373 2,081 3,688 10,584 5,104 10,035 5,807 7 3,319 4,033 1,945 926 3,399 (sum of PVs) Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 20% nominal rate and 10% expected inflation. NPV should be unchanged at +3,399, or $3,399,000. Note: Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Real Net Cash Flows NPV $ (13,100)
What is the present value of the following cash flow stream at a rate of 10.0%? Years: CFS: O a. $11,855.25 O b. $10,755.00 O c. $13,143.15 O d. $9,722.73 Oe. $8.907.02 0 $750 1 $2,450 2 $3,175 3 $4,400
Consider the following timeline: Date Cash flow $100 OA. $627 OB. $482 OC. $600 OD. $964 2 $200 3 $300 If the current market rate of interest is 10%, then the present value (PV) of this timeline as of year 0 is closest to ICCESS
Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %19. Year Cash Flow 0 -3000 1 2000 2 4000 3 -1000 4 3000 5 4000 6 -5000 7 9000 Select one: a. 0.2988 b. 0.2638 c. 0.2565 d. 0.3073 e. 0.2783 f. 0.3491
11. At a rate of 6.5%, what is the future value of the following cash flow stream? Years: CFS: a. $526.01 b. $553.69 c. $582.83 d. $613.51 e. $645.80 0 $0 1 + $75 2 $225 3 + $0 $300
Consider the following timeline detailing a stream of cash flows: Date 0 1 2 3 4 ? $5000 $6000 $7000 $8000 Cash flow If the current market rate of interest is 6%, then the present value (PV) of this stream of cash flows is closest to: A. $26,725 OB $22,271 C. $11,136 OD. $35,634
K Consider the following timeline detailing a stream of cash flows: Date 0 ? 2 OA. $24,852 OB. $33,136 OC. $10,355 OD. $20,710 $5000 $6000 $7000 $8000 Cash flow If the current market rate of interest is 9%, then the present value (PV) of this stream of cash flows is closest to:
What is the present value of the following cash flow stream at a rate of 10.0%? Years: 0 1 2 3 CFs: $750 $2,450 $3,175 $4,400 a. $10,755.00 b. $13,143.15 c. $11,855.25 d. $9,722.73 e. $8,907.02
What is the present value of the following cash flow stream at a rate of 6.50%? Years: 0 1 2 3 4 CFs: $0 $77 $240 $0 $285 Group of answer choices $505.44 $456.17 $433.37 $411.88 $480.02
For the value of P shown, what is the NPV for the cashflow? S1,000 5% Value of P Rate Year Cash Flow 0-12P 1$0 2$5,000 3$7,500 4+5P 5+2P 6+P $9,701 $14,037 $5,440 $7,500
ind the IRR for the following cash flows assuming a WACC of 10%. YR CF 0 -15,000 1 6,000 2 4,000 3 2,000 4 3,000 5 2,000

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