| Req a: | ||||
| Year | Cashflows | PVF at 6.3% | Present Value | |
| 1 | 11412 | 0.940734 | 10735.65 | |
| 2 | 22824 | 0.88498 | 20198.78 | |
| 3 | 34236 | 0.832531 | 28502.52 | |
| Present value | 59436.96 | |||
| Req b: | ||||
| Year | Cashflows | FVF at 6.3% | Present Value | |
| 1 | 11412 | 1.129969 | 12895.21 | |
| 2 | 22824 | 1.063 | 24261.91 | |
| 3 | 34236 | 1 | 34236 | |
| Present value | 71393.12 | |||
you have just recieved a windfall from an investment you made in a friends buisness. he...
You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 14,891 at the end of this year, $ 29,782 at the end of next year, and $44,673 at the end of the year after that (three years from today). The interest rate is 10.1 % per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on...
You have just received a windfall from an investment you made in a friend's business. She will be paying you $10,000 a year, and $30,000 at the end of the year after that three years from today). The interest rate is 3.5% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years on the date of the last payment)?
You have just received a windfall from an investment you made in a friend's business. She will be paying you $12,230 at the end of this year, $24,460 at the end of next year, and $36,690 at the end of the year after that (three years from today). The interest rate is 3.6% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of...
You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 28,753 at the end of this year, $57,506 at the end of next year, and $86,259 at the end of the year after that (three years from today). The interest rate is 13.6% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date...
You have just received a windfall from an investment you made in a friend's business. She will be paying you $23,629 at the end of this year, $47,258 at the end of next year, and $70,887 at the end of the year after that (three years from today). The interest rate is 8.3%per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the...
You have just received a windfall from an investment you made in a friend's business. She will be paying you $24,615 at the end of this year, $49,230 at the end of next year, and $73,845 at the end of the year after that three years from today). The interest rate is 14.5% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of...
in a friend's business. She will be paying you $11,382 at the end of this year, $22,764 at the end of next year, and $34,146 at the end of the year afer that You have just from today) The nterest rate is 3 4% per year a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a windfall from an investment you...
Problem 4-7 Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $400 at the end of Year 4, $500 at the end of Year 5, and $700 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value? Round your answer to the nearest cent What is its future value? Round your answer to the...
Your investment will pay you $15,000 at the end of one year, $14,000 at the end of the following year, and $24,000 at the end of the year after that (three years from today). The interest rate is 4%. (a) What is the present value? (b) What will be the future value three years later ? (c) Assuming that the investment costs $40,000 today, what is the net present value (NPV) of the investment?
Please show all work in legible writing, thank you
A single investment of $5,000 is made today at the Western Traders Credit Union account and will remain invested for five years. At the end of the fifth year, what is the future value if it is simple interest of 8% annually Draw the cash flow diagram a) b) Find the future value after five years