Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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What is the present value of the following set of cash flows at an interest rate of 7%; $2000 at the end of year one, $4000 at the end of year two, and $6000 at the end of year three?
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- Find the net present value (NPV) for the following series of future cash flows, assuming the company’s cost of capital is 10.19 percent. The initial outlay is $471,448. Year 1: 191,637 Year 2: 128,236 Year 3: 161,255 Year 4: 138,369 Year 5: 190,517 Round the answer to two decimal places in percentage form.arrow_forwardWhat is the present value of the following set of cash flows at an interest rate of 5%; $2000 at the end of year one and $6000 at the end of year four?arrow_forwardConsider the following timeline detailing a stream of cash flows: Date $1000 $2000 Cash flow O $14,311 If the current market rate of interest is 9%, then the future value (FV) of this stream of cash flows at the end of year 4 is closest to: O $11,926 O $5,963 $3000 $4000 $19,082 ?arrow_forward
- In the following cash flows diagram, Determine the Future Worth at the end of year 12 if the interest rate is 6% ? $200 $200 $150 $150 $100 $100 1 2 3 4 5 Years a. $1.445.8 Ob. $1364 Oc $1.532.6 Od. $1.286.8arrow_forwardFor the following cash flow series, which of the statements is true? Year Future Value 0 $200.00 1 $200.00 2 $200.00 a) The NPV is $561.60 at a discount rate of 6%. b) The NPV is $556.65 at a discount rate of 8%. c) The IRR is 9.81%. d) The payback is 2 years. e) None of the above.arrow_forwardGiven a 5 percent interest rate, compute the present value of cash flows occurred in years 1, 2, 3, and 4 of $1,000, $1,400, $1,400, and $1,500.arrow_forward
- Which of the following cash flows has the highest future value? A. $1000 invested for two years in the future when the interest rate is 4% ⚫B. $1000 invested for two years in the future when the interest rate is 6% • C . $1000 invested for three years in the future when the interest rate is 4% ⚫ D. $1000 invested for three years in the future when the interest rate is 6%arrow_forwardWhat is the present value of the following stream of cash flows if the discount rate is 9%? Year 1-5: $14,000 inflow Years 6-20: $23,000 inflow (Use the present value tables in your course packet for any present value calculations. Round your final answer to the nearest dollar.)arrow_forwardCan you please confirm my calculations: discount rate is 6%; end of year cash flows are as follows: Year 0: -20,000; year 1 through 5 are each 5,000; is the net present value of all cash flows 1061.82? and how do you calculate "at what discount rate is the net present value "0"?arrow_forward
- If you invest $8,800, what is your rate of return if you will receive the following cash flows at the end of these years: Yr. 1 $2,000; Yr. 2 $2,100; Yr. 3 $2,200; Yr. 4 $2,300; Yr. 5 $3,700?arrow_forwardWhat is the future value at the end of year 3 of the following set of cash flows if the interest rate is 8%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67) Year 0 cash flow = 2000 Year 1 cash flow = 1700 Year 2 cash flow = 700 Year 3 cash flow = 900 Answer: کےarrow_forwardWhat is the present value of the mixed cash flow pattern as below? Assuming a 3.3% interest rate (compounded annually). End of year Cash Flow 2 3 9 1.561 2.992 3,706arrow_forward
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