A series of payments that starts out at year 1 at $500 and inceases by $100 each year for the next 5 years at a discount rate of 5% Cash Diagram A. B. Calculate the Present Value
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Answer all parts of the economics problem
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- Calculate the present value at t=0 (now) of the following cash flows: D. $100 every 3 years forever, with the first payment at t=3 (t counts years), where the effective annual rate is .05 (i.e. 5%) E. $1000 every 3 years forever, with the first payment at t = 3 (t counts years), where the effective annual rate is .05 (i.e., 5%). F. $1000 every 3 years forever, with the first payment at t = 3 (t counts years), where the effective annual rate is .10 (i.e., 10%).What is the future value of a stream of $800 cash receipts, each to be received at the end of the next four years, with 10% annual compounding interest rate? Group of answer choices a. $4,084.08 b. $3,712.80c. $2,789.48 d. $2,535.893. To find the present value of a sum of sh. 10,000 to be received at the end of each year for the next 5 years at 10% rate, we use: A. Present value of a single cash flow table B. Present value of annuity table. C. Future value of a single cash flow table D. Future value of annuity table
- Find the future values of these ordinary annuities.Compounding occurs once a year.a. $500 per year for 8 years at 14%b. $250 per year for 4 years at 7%c. $700 per year for 4 years at 0%d. Rework parts a, b, and c assuming they are annuities due.Determine the value of W on the right-hand side of the accompanying diagram that makes the two cash-flow diagrams equivalent when /=9% per year. Q $1,150 30 1 2 End of Year $1,150 3 4 5 $1,150 W Click the icon to view the interest and annuity table for discrete compounding when i=9% per year. End of Year The equivalent amount, "W", of the cashflows provided in the diagram is $ 1739. (Round to the nearest dollar.) W OUeo Find the present value of a growing annuity that pays year-end cash flows for each of the next 19 years. The cash flow at the end of the first year will be $2,000, and future cash flows will grow by 2% per year. Assume a discount rate of 4%. Round your answer to two decimal places. Attemp 53 Mi
- Problem 6: Calculate the present values at t = 0 (now) of the following cash flows: a. $100 every year forever, with the first payment at t = 1 (t counts years), where the effective annual rate is .05 (i.e., 5%). b. $100 every year forever, with the first payment at t = 11 (t counts years), where the effective annual rate is .05 (i.e., 5%). Hint: What will be the value of this stream at t = 10 (ten years from now) if the discount rate remains 5%? To get the value at t = 0, discount this single value back 10 years at 5%. %3DYou are offered the choice of 4 cash flow streams. Assume an 8% discount rate for each. Which cash flow stream is least valuable to you today? A. $1000 per year to be received at the end of each of the next 10 years. B. $10,000 to be received at the end of 15 years. C. $10,000 to be received at the end of 10 years. D. $250 per quarter to be received at the end of each quarter for the next 10 years.What is the future value of a stream of $800 cash receipts, each to be received at the beginning of the next four years, with 10% annual compounding interest rate? Group of answer choices a $4,084.08 b $3,712.80 c $2,789.48 d $2,535.89
- Number of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Initial amount $112,100 Annual cash flow $25,622 Rate of return C 5% The number of investment years, n, is years. (Round to two decimal places.)You will be receiving the following cashflows: $7,000 today, $4,000 in two years, and $10,000 in five years. If the appropriate discount rate is 5.5%, what is the present value of this cashflow stream? a. $12,623 O b. $18,245 O c. $23,387 O d. $21,052 O e. $15,408 O f. $15,783 g. $9,789 h. $17,739Find the present values of these ordinary annuities.Discounting occurs once a year.a. $600 per year for 12 years at 8%b. $300 per year for 6 years at 4%c. $500 per year for 6 years at 0%d. Rework parts a, b, and c assuming they are annuities due.