HomeworkLib
Question

What is the present value of the following cash-flow stream if the interest rate is 5%?...

What is the present value of the following cash-flow stream if the interest rate is 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Year Cash Flow
1 $ 250
2 450
3 350
  Present value $   
business   accounting   
1 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1


Net Present value$         948.60

Working

YearCash flowPV Factor @5%Present value
1
$          250.000.952380952$         238.10
2
$          450.000.907029478$         408.16
3
$          350.000.863837599$         302.34
Net Present value$         948.60
1 0
Add a comment
Know the answer?
Add Answer to:
What is the present value of the following cash-flow stream if the interest rate is 5%?...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • a. Find the present values of the following cash flow streams at a 4% discount rate....

    a. Find the present values of the following cash flow streams at a 4% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A Stream B Stream A: $ $0 $0 $150 $300 $350 $350 $350 $350 $350 $350 $300 $150 Stream B: $ b. What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $ Stream...

  • a. Find the present values of the following cash flow streams at an 8% discount rate....

    a. Find the present values of the following cash flow streams at an 8% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A Stream B Stream A: $ $0 $0 $100 $250 $450 $450 $450 $450 $450 $450 $250 $100 Stream B: $ b. What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $ Stream...

  • Find the present values of the following cash flow streams. The appropriate interest rate is 12%....

    Find the present values of the following cash flow streams. The appropriate interest rate is 12%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the...

  • part 1 Find the present values of the following cash flow streams at a 10% discount...

    part 1 Find the present values of the following cash flow streams at a 10% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A $0 $100 $350 $350 $350 $300 Stream B $0 $300 $350 $350 $350 $100 Stream A $   Stream B $   What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A $   Stream...

  • 5 What is the present value of the following uneven cash flow stream? The appropriate interest...

    5 What is the present value of the following uneven cash flow stream? The appropriate interest rate is 12%, compounded annually ote that the final cash flow represents a project where there may be reclamation or other "end of project" costs which are greater than any final income and/or salvage value (1 point) 4. 150 200 350 200

  • 15. aFind the present values of the following cash flow streams at a 6% discount rate....

    15. aFind the present values of the following cash flow streams at a 6% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. 0 1 2 3 4 5 Stream A $0 $100 $450 $450 $450 $300 Stream B $0 $300 $450 $450 $450 $100 Stream A: $   Stream B: $   What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar. Stream A: $   Stream B:...

  • Find the present values of the following cash flow streams at a6% discount rate. Do...

    Find the present values of the following cash flow streams at a 6% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent.012345Stream A: $  Stream A$0$100$400$400$400$250Stream B$0$250$400$400$400$100Stream B: $  What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar.Stream A: $  Stream B: $  

  • What is the Net Present Value of the following cash flow stream? Year Cash Flow 0...

    What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 -$6,119 1 $1,333 2 $1,395 3 $1,160 4 $2,709 Assume an interest rate of 20%

  • Problem 4-28 Moving Cash Flows (LG4-5) What is the value in year 10 of a $350 cash flow made in year 6 if interest...

    Problem 4-28 Moving Cash Flows (LG4-5) What is the value in year 10 of a $350 cash flow made in year 6 if interest rates are 12 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Valuè in year 10

  • 26- What is the present value of the following cash flow stream at a rate of...

    26- What is the present value of the following cash flow stream at a rate of 13.5%? Years: 0 1 2 3 4 CFs: $0 $1,500 $3,000 $4,500 $6,000 27- What is the future value of the following cash flow stream at a rate of 13.5%? Years: 0 1 2 3 4 CFs: $0 $1,500 $3,000 $4,500 $6,000

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT