Solve for the unknown quantity in Parts (a) through (d) that makes the equivalent value of cash outflows equal to the equivalent value of the cash inflow, F.a. If F= $9,500, G = $550, and N=6, then i = ?b. If F = $9,500, G= $550, and i = 3% per period, then N = ?c. If G = $1,100, N = 12, and i =6% per period, then F= ?d. If F = $7,700, N= 6, and i = 6% per period, then G = ?Click the icon to view the accompanying cash-flow diagram.E Click the icon to view the interest and annuity table for discrete compounding when i = 3% per year.Click the icon to view the interest and annuity table for discrete compounding when i= 6% per year.a. The interest rate, i, is 10.5 %. (Round to one decimal place.)b. The number of years, N, isyears. (Round to one decimal place.)

Future Value = Present Value * (1+Interest%)^N 9500 = 550 * (1+i)^6 17.27 = (1+i)^6 17.27^(1/6) = 1…

Solve for the unknown quantity in Parts (a) through (d) that makes the equivalent value of cash outflows equal to the equivalent value of the cash inflow, F. a. If F= $9,500, G = $550, and N= 6, then i=? b. If F = $9,500, G = $550, and i=3% per period, then N= ? c. If G = $1,100, N = 12, andi 6% per period, then F=? d. If F= $7,700, N=6, and i =6% per period, then G = ? Click the icon to view the accompanying cash-flow diagram. Click the icon to view the interest and annuity table for discrete compounding when i= 3% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 6% per year. a. The interest rate, i, is 10.5' %. (Round to one decimal place.) b. The number of years, N, is years. (Round to one decimal place.)

Solve for the unknown quantity in Parts (a) through (d) that makes the equivalent value of cash outflows equal to the equivalent value of the cash inflow, F. a. If F= $9,500, G = $550, and N= 6, then i=? b. If F = $9,500, G = $550, and i=3% per period, then N= ? c. If G = $1,100, N = 12, andi 6% per period, then F=? d. If F= $7,700, N=6, and i =6% per period, then G = ? Click the icon to view the accompanying cash-flow diagram. Click the icon to view the interest and annuity table for discrete compounding when i= 3% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 6% per year. a. The interest rate, i, is 10.5' %. (Round to one decimal place.) b. The number of years, N, is years. (Round to one decimal place.)

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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Refer to the accompanying cash-flow diagram (see Figure), and solve for the unknown quantity in If G = $1,000, N = 12, and i = 10% per period, thenF = ? that makes the equivalent value of cash outflows equal to the equivalent value of the cash inflow, F.
Consider the cash flow transactions depicted in the accompanying cash flow diagram, if the value of B=$1200, the present value P is closest to:
= 6) Find the internal rates of return on a cash flow with deposit amounts of A = A₁ = 240, B₁ 120, A₂ = 20, B₂ = 290, and withdrawal amounts of Bo at times t = 0, t = 1, t = 2, respectively. = 40, 10,
Which of the following statements are correct? The internal rate of return (IRR) generated by a positive cash flow stream of n payments. (a)is always smaller or equal than +1 (b)is always given by the solution of a quadratic equation (c)is always bigger or equal than -1 (d)can be 17 for a suitable cashflow (e)can be -2 for a suitable cashflow
(a) Calculate the equivalent amount P at the present time. The equivalent amount P at the present time is $ (b) Calculate the single-payment equivalent to F at n = 5. The single-payment equivalent to Fat n = 5 is $ (Round to the nearest dollar.) (c) Calculate the equivalent equal-payment series cash flow A that runs from n=1 to n = 5. The equivalent equal-payment series cash flow A is $ (Round to the nearest dollar.) (Round to the nearest dollar.)
Find the value of the unknown quantity Z in the following shown diagram, such that the equivalent cash outflow equals the equivalent cash inflows when r = 20% compounded continuously:
The following set of cash flows has two internal rates of return. Calculate the 2nd IRR for the cash flows. (Enter percentages as decimals and round to 4 decimals). Hint: you will need to use a guess in the Excel function. Time 0 1 2 3 4 CF 8125 -17000 8000 -7500 9000
Consider two assets with the following cash flow streams:Asset A generates $4 at t=1, $3 at t=2, and $10at t=3. Asset B generates $2 at t=1, $X at t=2, and $10at t=3.Suppose X=6 and the interest rate r is constant. (a)For r=0.1, calculate the present value of the two assets. (b)Determine the set of all interest rates {r} such that asset A is more valuable than asset B. (c)Draw the present value of the assets as a function of the interest rate. (d)Suppose r=0.2.Find the value X such that the present value of asset B is 12. (e)Suppose the (one-period) interest rates are variable and given as follows: r01=0.1, r12=0.2, r23=0.3. Calculate the yield to maturity of asset A.
Consider the following cash flows: Year Cash Flow 0 –$7,400 1 2,100 2 4,700 3 1,900 4 1,600 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.)
Tick all those statements that are correct. The internal rate of return (IRR) generated by a positive cash flow stream of n payments □ a. is always given by the solution of a quadratic equation O b. can be -2 for a suitable cashflow can be 17 for a suitable cashflow is always bigger or equal than-1 C. O d. 0 e. is always smaller or equal than +1
Consider two assets with the following cash flow streams: Asset A generates $4 at t=1, $3 at t=2, and $10 at t=3. Asset B generates $2 at t=1, $X at t=2, and $10 at t=3. Suppose X=6 and the interest rate r is constant. For r=0.1, calculate the present value of the two assets. Determine the set of all interest rates {r} such that asset A is more valuable than asset Draw the present value of the assets as a function of the interest rate. Suppose r=0.2. Find the value X such that the present value of asset B is 12. Suppose the (one-period) interest rates are variable and given as follows: r01=0.1,r12=0.2, r23=0.3. Calculate the yield to maturity of asset A. (You can use Excel or ascientific calculator to find the solution numerically.)
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.

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