what is the present value of a series of $6000 end of the year cash flowsto be received forever if the required rate of return is 5% per year and the first cash flow is one year from today? a)$8333.33 b)300 c)120000 d)12000

Q: How much approx., would be the FW of $30,000 be worth after 50 years if a rate of 10%/yr (compounded…

A: Solved using Financial Calculator  PV = +/- 30,000 N = 50*12 = 600 I/Y = 10/12 = 0.8333 CPT FV =…

Q: What is the present value of £100, growing at 2% per year, to be received every year forever, if the…

A: The present value of a growing perpetuity can be calculated as the sum of all discounted cash flows…

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A: Present Value of Annuity: It represents the present worth of the future annual cash flows and is…

Q: Revenue from a project is expected to be $7000 per year in real terms (i.e. an identical project…

A: Real Value (P) = $7,000Inflation rate (r) = 2.4% or 0.024Number of years (n) = 8

Q: An investment offers $6,500 per year, with the first payment occurring one year from now. The…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: A sum of $4 million is equivalent to $4.2 million one year from now at what interest rate?

A: Future value = Present value * (1 +rate )^no. of years

Q: What is the future value of $250 received today if it is invested at 6.5% compounded annually for…

A: In this question we require to calculate the future value from below details : Present value = $250…

Q: For the given cash flow, if the equivalent uniform annual payments is $2000 and the interest rate is…

A: Uniform annual payment = $2000 i = 4% = 0.04 Period = 9 years Future value of annuity is calculated…

Q: If you invest £100 now and expect to receive £133.1 in 2 years time, what is the Internal Rate of…

A: Note: In Option, a) 0 is being used instead of the bracket, and accordingly it is 15% and not…

Q: Q.15 An investment offers $6000 per year for 10 years, with the first payment occurring one year…

A: Value of investment is the present value of cash flow from the investment based on interest rate and…

Q: What will be the future value of the following cash flows by the end of the fifth year, if the…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: What is the present value of the following cash flows if I can earn 10% per year: A payment of $10…

A: Net present value helps in estimating the future value of cash flows and choosing the discount rate…

Q: How much would $9,000 t8 be received at the end of 50 years be worth today if the required rate of…

A: Using excel, FV is 9,000 Rate = 7.5% Time (nper) = 50 years PMT = 0 PV = ?

Q: At what rate must $700 be compounded for it to grow to $1000 in 7 years?

A: Present value = $700 Future value = $1,000 Number of years (n) = 7

Q: Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of…

A: Future Value of annuity due is the annuity in which payment is made at the beginning of the period…

Q: If you are promised $50,000 six years from now, the present worth at a real rate of return of 4% per…

A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

Q: What payment ten years from now is equivalent to P1,800 six years from now if the interest is 16%…

A: solution : a) interest rate =16% compounded annually 0 - 1 - 2 - 3 - 4…

Q: Present Value of Amounts Due Assume that you are going to receive $620,000 in 10 years. The current…

A: a. Calculation of Present Value:Identify the future value to be received: $620,000Determine the…

Q: What is the present value of $10,000 paid at the end of each of the next 68 years if the interest…

A: Present value of ordinary annuity may be calculated though following formula   Present Value =…

Q: Problem 6: Calculate the present values at t = 0 (now) of the following cash flows: a. $100 every…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

Q: A seriesof positive future cash flows has a present value of €150 when the cash flows are…

A: We need to calculate effective annual rate for monthly compoundingwherer=annual discount…

Q: What would you be willing to pay (now) for the following yearend cash flows if your required return…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: 1. I borrow $10000 at 10% per year interest. I plan to repay the loan after 5 years. How much would…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: 7. With a present value of $135,000, what is the size of the withdrawals that can be made at the end…

A: according to bartleby guidelines, if multiple questions are asked , then 1st question needs to be…

Q: What is the present value

A: Present Value can be calculated using the following formula: Present Value = Annual cash flow /…

Q: return of 12% per ar

A: The worth of a present asset at a future date based on an estimated rate of growth is known as…

Q: Consider a cash flow that lasts for ten years. the initial value A occurs at the third year,…

A: Present Value of series = 34,717 Interest Rate = 8% Annual Growth Rate = -6% Cash flows start at end…

Q: Which of the following investment options will maximize the rate of return in a period of 20 years?…

A: Monthly Compounding Number of compounding periods = 12   Interest Rate = Rate / Number of…

Q: What is the value today of an investment that will pay $3,947.00 every six months for 27 years?…

A: The amount of the investment per six months is $3,947 The time period is 27 years The deferral…

Q: What is the present value of receiving $1,950 a year for 30 years if you expect a rate of return of…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: What is the present value of a perpetual stream of cash flows that pays 20,000 at the end of year…

A: In the given case, we have provided the expected cash flows in Year 1, perpetual growth rate and the…

Q: What is the present value of a perpetual stream of cash flows that pays ​$   7,500 at the end of…

A: Year one cash flow = $7500 Growth rate = 0.02 Discount rate = 0.09 Discount rate = 0.07     Present…

Q: Problem 6: Calculate the present values at t = 0 (now) of the following cash flows: a. $100 every…

A: Since you have asked a question with multiple parts and the first 3 parts have been solved, we will…

Q: Draw the cash flow diagram with your solution About how many years will P100,000 earn a compound…

A: Present value (P) = P100,000 Interest amount (I) = P50,000 Interest rate = 9% Quarterly interest (r)…

Q: If you invest $10,000 today for 8 years, how much will the original investment be worth if…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: What is the present value of $250,000.00, 10 years from now @ 6%?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: WHAT WILL BE THE FUTURE WORTH OF MONEY AFTER 6 MONTHS, IF THE SUM OF P100,000 IS INVESTED TODAY AT…

A: Future worth of money at simple interest is calculated as follows Future value of amount invested =…

Q: What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of year…

A: Year 1 cash flow (CF1) = $80,000 Growth rate (g) = 0.06 Interest rate (r) = 0.10 Present value = ?

Q: What is the future value factor for a cash flow to be received in seven years, where the interest…

A: Interest rate (r) = 15% Period (n) = 7 Years

Q: What is the future value in 2 years if you invest $100 at the beginning of each month for 12 months…

A: Future value of money includes the amount of deposit being made and the amount of compounded…