6.4 Consider the accompanying cash flow diagramCompute the equivalent annual worth at i = 14%.$9,000$7,500$6,000$4,5000.14Years$4,500Figure P6.4

The present value is the value of the sum received at time 0. It is the current value of the sum…

Answered: 5.4 Consider the accompanying cash flow…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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6.6 Consider the accompanying cash flow diagram. Compute the equivalent annual worth at i = 10%. $2,000 $2,000 $1,500 $1,500 $1,000 3 4 5 6 Years 0 $4,500 1 2
QUESTION 5 What single sum at t=6 is equivalent at 7% compounded annually to the following cash flow profile ? ΕΟΥ 86 3 9. Cash Flow 167 228 308 35
Year Cash Flow $275.000 1 $35.00 2 S65,000 36 S25.000 $13500 $185.000 9-20 $245,000 Given the following cash flows and if MARR-24%? Ans xx What is the Simple Payback Period? Ans XX What is the Discounted Payback Penod? 01 7 8.
Question 6 Calculate the rate of return per year (IRR) for the following cash flow:(XO=$-56,000, X1=$20,000, X23D$19,000, X3-$17,000, X4=$17,000, X5=$19,000) Your answer: O 39.2% O 3.9% O 9.8% O 41.2% O 23.5% O 23.5% O 36.3% O 28.4% O 19.6% Clear answer Pause test Back Next
Question 12: Consider the following cash flow diagram and compute the equivalent annual worth at i = 10%. $6000 $5000 $4000 $3000 4 5 6 Years $3000 3. 2.
Problem 1.0 Compute equivalent uniform annual worth (EUAW) considering 10% interest rate for the following cash flow diagram. 24,500 13,000
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Investment Perlod 1 2 3 4 5 $(1,000) $100 264 A $100 $100 $100 $1,100 в (1,000) 264 264 264 264 (1,000) 1,611 1. Compute the net present value for each of the following cash flow sequences. Assume a cost of money of 10 percent. 3. Compute the payback for each of the cash flows in problem 1. If the maximum acceptable payback period is four years, which (if any) of the cash flows would be accepted as a desirable investment? 4. Assume a cost of money of 5 percent. Compute the net present values of the cash flows of problem 1. 5. Assume a cost of money of 15 percent. Compute the net present values of the cash flows of problem 1. Compare with the results obtained from problems 1 and 4. 6. The Arrow Company is considering the purchase of equipment that will return cash flows as follows: End of period Cash flows $5,000 2 3 3,000 2,000 1,000 500 5 Assume a cost of money of 10 percent. What is the maximum amount the company could pay for the machine and still be financially no worse off than if…
Compute for the value of x so that the two cashflows will be equivalent. ... 2800 1400 AX 700 3X メ 4 EDY 1 2 3 4 i = 10% co. yearly X is Blank 1
LG 6 P5-60 Number of years to provide a given return In each of the following cases, determine the number of years that the given annual end-of-year cash flow must continue to provide the given rate of return on the given initial amount. TTT Case Initial amount Annual cash flow Rate of return A $1,000 $ 250 11% 150,000 30,000 15 80,000 10,000 10 600 275 E 17,000 3,500
Year Cash Inflow1 14,0002 19,0003 31,0004 05 06 07 130,000 what is the future value of this cash flow at 3%, 11%, and 18% interest rates at the end of year 7
QUESTION 1 For the below Cash Flow, find the total PW value using 10% interest rate years cost $ 3,065 1 1,000.00 2 4,117 4,000.00 1,000.00 3456

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5.4 Consider the accompanying cash flow diagram Compute the equivalent annual worth at i = 14%. $9,000 $7,500 $6,000 $4,500 1 4 Years $4,500