You are expecting to receive a payment of $5969 in 2 years and $9869 in 6 years. If the interest rate is 14.61%, how much are these cash flows worth today?

Q: What is the present value of $30,000 you will receive 7 years in the future, ass

A: The present value is equivalent value of money to be received today that will be equal to money to…

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

A: Formulas: Future value = Present value *(1+rate)^years

Q: You have a cash of Rs. 100,000 today. What will be its value after 5 years if you make an investment…

A: Present Value = 100,000 Time Period (N) = 5 Interest Rate = 12%

Q: If you have $60,000 in a bank account that is paying an interest rate of 4 percent that is being…

A: To find out how many years it will take to double an investment with a constant interest rate, you…

Q: You are expecting to receive the following payments: $7,000 in one year and $5,000 three years from…

A: Payment for Year 1 = p1 = $7000Payment for year 3 = p3 = $5000Discount Rate = r = 8%

Q: Calculate  time value of money : If I am to receive $10k in 5 years, given a 5% rate of return, what…

A: Time value of money helps the management for decision making. as the value of money, today is high…

Q: Suppose that starting a year from now you will receive $720 a year at the end of every year. If the…

A: In this question we need to calculate the Present value of perpetuity i.e. stream of cash flows…

Q: Suppose  you expect to receive the following future cash flows at the end of the years indicated.…

A: Future value- Year       FV 2          $2300 4          $5200 5          $2600 9          $8000…

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: Interest rates are 10%. Suppose you deposit the PV (present value) of a 7 year, $5000 annuity in the…

A: An annuity is a cash flow that occurs in each period and the amount is fixed or constant.   In this…

Q: An investment pays an annual cash flow of $1 forever. The appropriate discount rate is 4% per year.…

A: Annual cash flow (C) = $1Discount rate (r) = 0.04Present value = ?Present value will be the…

Q: If the annual interest rate is 2%, what is the present value of this opportunity?

A: The present value assists in determining the current value of a future sum of money. It accounts for…

Q: Suppose that starting one year from now you will receive $560 a year at the end of every year. If…

A: Present value of perpetuity = perpetuity amount / discount rate

Q: annual payment from a cash flow is expected to grow 4% per year from year 1 to year 10, after which…

A: The present value of cash flow would be the equivalent value today that is equivalent to cash flow…

Q: What is the present value of $3,000 paid each year forever, assuming a discount rate of 5% and the…

A: The question is solved by computing the present value of perpetuity.present value of perpetuity…

Q: You are planning to deposit in saving account $25000 three years from now, $35000 in the fourth…

A: Time value of money concept says that an amount invested today will have more value in future due to…

Q: You have an opportunity to make an investment that will pay ​$200 at the end of the first​ year,…

A: Present value of stream of cash flows can be calculated by discounting each cash flow to the…

Q: what is the present value

A: The time value of money means that the amount of money received in the present period will have…

Q: What interest rate must your bank offer if you want your $2,730 invested today to grow to $3,470 in…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

Q: Suppose your bank account will be worth $4,200.00 in one year. The interest rate (discount rate)…

A: Present value is the present worth of any sum of money to be received in the future at a specified…

Q: You expect to receive two cash flows: $41,000 paid in 5 years and $61,500 paid in 10 years. You'll…

A: Future value is an estimate of future cash values ​​that may be received at a future date,…

Q: You investe an amount of P50,000 with a promised interest of 9% compounded quarterly. How many years…

A: Since the quoted interest rate is compounded quarterly, the effective interest rate will be used to…

Q: 5. In eighteen years, you require an annuity stream of income that will pay out $100,000 per year…

A: An annuity refers to a fixed stream of payments. In this case the annuity amount is $100,000 per…

Q: Calculate the present value of this infinite future payment of $100

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Assume you recently have 6,000 in a bank. Asusume that you are going to receive 160 monthly until…

A: It is calculated by discounting all the cash flows to be received in the future and taking the sum…

Q: An investment offers $8800 per year for 14 years with the first payment occuring one year from now.…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: You are going to invest $9237 today and $9695 1 year from today.  If you expect to earn a return of…

A: Step 1 Future value is the amount of money that, with time and an interest rate, is invested now and…

Q: What equal amounts of money will have to be deposited 5, 8 and 11 years from now, if you want to…

A: Future worth is the amount that an investor expects from the cash flows in each period. Future worth…

Q: Suppose that you will receive annual payments of $10,000 for a period of 10 years. The first payment…

A: Given: Annual payments = $10,000 Interest rate = 6% Period = 10 years

Q: You will invest in something that will give you a payment of $211 two times each year.  You plan to…

A: Step 1 An annuity is a contract that you have with an insurance provider that calls for periodic…

Q: You are told you will receive a cash flow stream that gives you $2,150 at time 1, $2,750 at time 3,…

A: Present value today is equivalent money that is to be received in the future times at different…

Q: You found out that now you are going to receive payments of $9,000 for the next 11 years. You will…

A: Annual Payments = $9,000 Time period = 11 years Annual interest rate = 11%

Q: 21. In considering investments in large capital projects, a company is deciding in which of the…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: At the end of each of the next 5 years, you will deposit the following amount into your savings…

A: Compounding the present value provides future value