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![What is the equivalent uniform annual payment for the following investment if the interest rate is 10%?
Populate the following table and compute the uniform annual payment. Show all work and provide a
comment.
[Hint: This problem is a mix of annuity, gradient, and a single future cash payment]
ΕΟΥ
Cash Flows
1
$4,000
2
$4,500
3
$5,000
4
$5,500
5
$6,000
60
$6,500
7
$7,000
00
8
$7,500
9
$8,000
10
$15,500
Annuity
Gradient
Future](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3db23a83-bbb0-4f29-aa75-2901db9315cc%2F1381407c-5611-4e63-9c70-f70141ec899f%2F3jje51f_processed.png&w=3840&q=75)
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- What is the equivalent uniform annual payment for the following cash flows if the interest rate is 10%? Populate the following table and compute the equivalent uniform annual payment. Show all work and provide an explanation. Do not use Excel. [Hint: This problem is a mix of annuity, gradient, and a single future cash flows.] ΕΟΥ Cash Flows Annuity Gradient Future 1 $2,000 2 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $14,000 IN 3 st 4 5 6 7. 8 9 10Suppose you are offered a project with the following payments: Year Cash Flows 0 $ 9,800 1 −5,300 2 −4,000 3 −3,100 4 −1,700 a. What is the IRR of this offer? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. If the appropriate discount rate is 15 percent, should you accept this offer? c. If the appropriate discount rate is 21 percent, should you accept this offer? d-1. What is the NPV of the offer if the appropriate discount rate is 15 percent? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. d-2. What is the NPV of the offer if the appropriate discount rate is 21 percent? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.uestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W X
- For question 1 parts a,b,c below, show all work that justifies your results. You will show how to use series to compare values of payments over time with a lump sum payment today. The value of future payments in terms of today's dollars is known as the present value of those payments. 1. a. What is the present value formula if annual payments of C dollars continue indefinitely, assuming an average annual interest rate r? Write the answer as a series using summation notation b. Rewrite the summation formula found in part a. as a geometric series, and then find the sum. The answer will be a fraction containing C and r. c. For annuities with a present value of $1 million, calculate the annual payouts given over 25 years assuming interest rates of 1%, 5%, and 10%. Use the formula you obtained in part b. There are three answers- one for each rate, measured in dollars. Round each answer to the nearest cent.Part B: Solve the following excersises: 1) Consider the following timeline where the firm requires the annuity to provide a minimum return of.....%. (write any number for interest rate): Project A End of Yoar -50,000 15,000 15,000 15,000 15,000 Calculate Future Value (FV) using two methods (Timeline and Equation) and compare the answers.Find the PV and FV of an investment that makes the following end-of-year payments. The interest rate is 8%. Year Payment 1 100 2 200 3 400 Rate = 8% To find the PV, use the NPV function: PV = Year Payment x (1 + I )^(N-t) = FV1 100 1.17 116.64 2 200 1.08 216.00 3 400 1.00 400.00 Sum = ?PV = ?FV of PV = ?
- A potential project provides the following: Initial Investment = 36,101 Annual cash Flows = 12,101 period= 5 years What is the discount rate If NPV = 0? Answer in the format: #0.00 Answer as a percentage but without the % sign Example 0 0651 is entered as 6.51 Do not round intermediary calculations. Use full precision of your calculator or Excel. Do not include commas or dollar signs. Round properly to two decimal places Example: .157835 would be .16 Example: 2.3491 would be entered 2.35 HINT: Be sure your answer is percentageConsider a project with the following cash flows: End of Year (n) Cash Flows ($)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%?Find the present value PV of the annuity account necessary to fund the withdrawal given. HINT [See Quick Example 3.] (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $2,800 per quarter for 10 years, if the account earns 6% per year PV = $ Need Help? Read It
- You are considering an investment project with the cash flows of -300 (the initial cash flow), 800 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 10%, compute the Modified Internal Rate of Return (MIRR) using the discountingapproach. 19.72% 71.94% 37.52% 50.55%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?Consider the following investment project. Calculate the net future worth of this investment at 11% and determine the acceptability of the investment. An - $80,000 21,700 22,700 1 2 3 32,900 32,900 18,000 5 Click the icon to view the interest factors for discrete compounding when i= 11% per year. The net future worth of this investment will be S thousand. (Round to one decimal place.) More info Single Payment Equal Payment Series Compound Amount Present Compound Amount Sinking Fund Present Capital Recovery Factor Worth Worth Factor Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1 1.1100 0.9009 1.0000 1.0000 0.9009 1.1100 2 1.2321 0.8116 2.1100 0.4739 1.7125 0.5839 3 1.3676 0.7312 3.3421 0.2992 2.4437 0.4092 4 1.5181 0.6587 4.7097 0.2123 3.1024 0.3223 5 1.6851 0.5935 6.2278 0.1606 3.6959 0.2706 6 1.8704 0.5346 7.9129 0.1264 4.2305 0.2364 7 2.0762 0.4817 9.7833 0.1022 4.7122 0.2122 8 2.3045 0.4339 11.8594 0.0843 5.1461 0.1943 9 2.5580…
