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- Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $970 2 1200 3 1420 4 2160 a.) If the discount rate is 7 percent what is the future value of these cash flows in Year 4 B) What is the future value at an interest rate of 13 percent? C) What is the future value at an interest rate of 22 percent?Your investment will pay you the following cash flow stream: YEAR | CASH FLOW 1 |200 2 10 3 100 4 100 If your required rate of return is 12%, what is the value (i. e., present value ) of this investment at time 0? What is the future value at the end of year 7? Please explain in steps to input on BA II Plus calculatorWells Inc., has identified an investment project with the following cash flows. Year Cash flow 1 $970 2 $1200 3 $1420 4 $2160 a.) If the discount rate is 7 percent, what is the future value of these cash flows in year 4? a.) Future value at 7 percent_____ b.) What is the future value at an interest rate of 13 percent? b.) Future value at 13 percent_____ c.) What is the future value at an interst rate of 22 percent? c.) Future value at 22 percent_____
- Cannonier, In., has identified an investment project with the following cash flows: Year Cash Flow 1 $1,050 2 1,280 3 1,500 4 2,240 If the discount rate is 7 percent, what is the future value of these cash flows in Year 4?Consider a project with the following cash flows: End of Year (n) Cash Flows ($)0 -$22,4001 4,5002 12,6703 14,7804 13,6505 11,4406 7,800(a) At an interest rate of 18%, what is the discounted payback period?(b) What is the discounted payback period if the interest rate is 0%?A project has the following cash flows : Year Cash Flows 0 −$11,100 1 4,750 2 6,820 3 4,320 4 −1,760 Assuming the appropriate interest rate is 9 percent, what is the MIRR for this project using the discounting approach?
- A project has the following cash flows : Year Cash Flows 0 −$ 12,100 1 5,350 2 7,720 3 5,120 4 −1,560 Assuming the appropriate interest rate is 7 percent, what is the MIRR for this project using the discounting approach?Calculate the duration for the following cash flows of an investment. Given the market interest rates are 10%. Year 1 2 3 4 7 8 Cash flow 140 150 160 170 180 190 200 250PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM An investment will pay $150 atthe end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and$500 at the end of Year 6. If other investments of equal risk earn 11% annually, what is itspresent value? Its future value?
- a) The initial outlay of the investment is €125,000. The income stream is €30,000 in year 1, €55,000 in year 2, €60,000 in year 3 and €70,000 in year 4. What is the net present value of the investment at 18% discount rate? b) What is the IRR of the aforementioned investment? c) Using the DCF approach requires some forecasting of the future – How can this. be done?a) The initial outlay of the investment is €125,000. The income stream is €30,000 in year 1, €55,000 in year 2, €60,000 in year 3 and €70,000 in year 4. What is the net present value of the investment at 18% discount rate? b) What is the IRR of the aforementioned investment? c) Using the DCF approach requires some forecasting of the future – How canthis. be done?For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an investment rate of 25% per year and a borrowing rate of 11% per year. What is the external rate of return?