1. A cash flow of $747.25 is available now (in Period 0). For this cash flow, the appropriate discount rate/period is 6.0%.What is the period 5 future value? Use worksheet "Single-FV". Single Cash FlowFuture ValueInputsSingle Cash FlowDiscount Rate/Period747.256.00%Number of PeriodsFuture Value using a Time LinePeriod234Cash FlowsFuture Value of Each Cash FlowFuture ValueFuture Value using the FormulaFuture ValueFuture Value using the FV FunctionFuture Value

Future value is generally calculated by compounding the present value of cash amount . Future…

Answered: Single Cash Flow Future Value Inputs…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter11: Venture Capital Valuation Methods

Section11.7: Introducing Scenarios To Vcscs

Problem 3CC

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Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %10. Cash Flow Year 0 1 2 3 4 5 6 7 Select one: a.0.245007 b.0.19667 c.0.168017 d.0.204146 e.0.274516 f.0.181262 g.0.228861 h.0.264278 -3000 3000 6000 -1000 2000 4000 -5000 8000
The PW-criterion accounts for the time value of money by converting the cash flows to the period corresponding to the present by using the equations or functional notations Select one: True O False
Which of the following cash flow streams could be evaluated using the basic Internal Rate of Return (IRR) method? A. CF1 $100 CF2 = -$20 CF3 - $20 B. CF1 =-$100 CF2 $20 CF3 $20 c. CF1 -$100 CF2 = $20 CFJ -$20 D. CF1 $100 CF2 = $20 CFJ $20 All of the above E.
For the cash flows shown and in preparation for a PW-based rate of return analysis, determine the incremental cash flow between machines B and Afor (a) year 0, (b) year 3, and (c) year 6.
Annuity Present Value Inputs Payment Discount Rate/Period Number of Periods Present Value using a Time Line Period Cash Flows Present Value of Each Cash Flow Present Value Annuity Present Value using the Formula Present Value Annuity Present Value using the PV Function Present Value
What is the internal rate of return of the following cash flow diagram? a. 20.0% b. 18.2% c. 17.5% d. 15.0%.
Direction: Define, draw the cash flow diagram, and write the general formula of the following: ANNUITY 1. Ordinary Annuity a) Sum/Future of Ordinary Annuity b) Present Worth of Ordinary Annuity 2. Annuity Due 3. Deferred Annuity
FIND (x)FOR THE SHOWN CASH-FLOW DIAGRAMS USE:i=9% 20000 ifr 3 12000 X 8000
There are four variables in the process of adjusting single cash flow amounts for the time value of money:present value (PV), future value (FV), i and n. If you know any three of these, the fourth can be computedeasily
Which of the following discounts future cash flows to their present value at the expected rate of return, and compares that to the Initial Investment? A. internal rate of return (IRR) method B. net present value (N PV) C. discounted cash flow model D. future value method
a. Calculate the IRR for each of the three cash-flow diagrams that follow. Use EOY zero for (i) and EOY four for (ii) and (ii) as the reference points in time. What can you conclude about "reference year shift" and "proportionality" issues of the IRR method?
Draw the cash inflow and cash outflow diagram using the present worth method. Rate of interest=10%

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Single Cash Flow Future Value Inputs Single Cash Flow Discount Rate/Period 747.25 6.00% Number of Periods Future Value using a Time Line Period 1 2 3 4 Cash Flows Future Value of Each Cash Flow Future Value Future Value using the Formula Future Value Future Value using the FV Function Future Value