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- Calculate the equivalent AW at i= 10% per year for the following net cash flow: Year Cash flow, $ -2,000 2. -2,000 3 -2,000 4 5,000 5,000 5,000 Select one: O a. 573.9 O b. 1,431.9 O c. 1,860.9 O d. 1,002.9 O e. 2.289.9PreviousBalance AnnualPercentageRate (APR)(as a %) MonthlyPeriodicRate FinanceCharge(in $) Purchasesand CashAdvances PaymentsandCredits NewBalance(in $) $2,490.00 % 1 1 4 % $ $1,374.98 $300.00 $=NPV(B26,I27:R27)-B24 B26 = discount rate of 9% B24 = initial investment of $30m I27:R27 = yearly cash flows: what are the cash flows for each year?
- Year Cash Flow ($) 0 17,700 1 10,000 2 8,900 3 5,400 What is the profitability index for the set of cash flows if the relevant discount rate is 11 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)4. Find the real After-Tax ROR for the following cash flow. Given 28% tax & i, =8.5% 100K 11K 11K 11K 11K of 1 20 M .. 100KYear Cash Flow 0 (8,100.00) 1 3,600.00 2 3,900.00 3 2,800.00 a. What is the profitability index for the cash flows if the relevant discount rate is 9 percent? b. What is the profitability index for the cash flows if the relevant discount rate is 14 percent? c. What is the profitability index for the cash flows if the relevant discount rate is 24 percent?
- Complete the missing variables in the table below; bgs Annual nominal Cmpd/year # years I%/yr (nom) PV FV 1 1 10.0% $ 1,000.00 1 5 10.0% $ 1,000.00 1 10 10.0% $ 1,000.00 1 10 5.0% $ 1,000.00 4 5 10.0% $ 1,000.00 12 5 10.0% $ 1,000.00 1 10 5.00% $ 2,000.00 1 10 10.00% $ 2,000.00 1 5 10.00% $ 2,000.00 4 5 10.00% $ 2,000.00 12 5 10.00% $ 2,000.00 1 5 $ 1,000.00 $ 1,338.23 1 10 $ 1,000.00 $ 1,480.24 12 10 $ 1,000.00 $ 2,451.36 1 8.00% $ 1.00 $ 2.00NPV(Net Present Value) with discount rate is 6% for this period and cashflow as followed. Period 0, Cashflow ($150,000) Period 1, Cashflow $70,000 Period 2, Cashflow $80,000 Net present value is 71,198. Payback period is 2 years. Please elaborate in detail the obvious problem with using the payback method (Profit Index, NPV, IRR & Time Value Of Money).Consider the following sequence of year-end cash flows: EOY 1 3 Cash Flow $9,000 $14,000 $19,000 $24,000 $29.000 What is the uniform annual equivalent if the interest rate is 7% per year? Click the icon to view the interest and annuity table for discrete compounding when i=7% per year. Choose the correct answer below. O A. $18,325 O B. $19,000 O C. $14,636 O D. $20,425 O E. $9,325
- Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $ (3,500,000.00) ($3,500,000.00) 1 $ 900,000.00 0.90909 $ 818,181.00 $818,181.82 2 $ 900,000.00 0.82645 $ 743,805.00 $743,801.65 3 $ 900,000.00 0.75131 $ 676,179.00 $676,183.32 4 $ 900,000.00 0.68301 $ 614,709.00 $614,712.11 5 $ 900,000.00 0.62092 $ 558,828.00 $558,829.19 Net Present Value $ (88,298.00) $ (88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. start with 5% increase for Year 1 net cash flow. Year Net Cash Flow 0 $…What is the NPV of the following cashflows, assuming a discount rate of 12%? Year Cashflow 0 -$1,200 1 $400 2 $300 3 $300 4 $500 5 $600 Question 25 options: $377 $900 $239 $268Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $(3,500,000.00) ($3,500,000.00) 1 $900,000.00 0.90909 $818, 181.00 $818, 181.82 2 $ 900,000.00 0.82645 $743,805.00 $743, 801.65 3 $900,000.00 0.75131 $676, 179.00 $676, 183.32 4 $ 900,000.00 0.68301 $614,709.00 $614,712.11 5 $900,000.00 0.62092 $558, 828.00 $558,829.19 Net Present Value $(88,298.00) $(88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. Hint: You should start with 5% increase for Year 1 net cash flow.