Compute the value of P for the accompanying cash flow diagram. Assume i = 8% $350 $350 $300 $300 $250 $250 $150 $150 $200 $200 $100 $100 1 2 3 4 5 6 7 $ 9 10 11 Years
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A: Interest rate = 9% Period = 13 Years
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A: IRR refers to the internal rate of return of a project or investment. This is the rate whereby the…
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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: compute the Net Present Value of the following set of cash flows:
A: Excel Workings:
Q: Compute the present value for the cash flow diagram shown below if i=6%, compounded annually. $500…
A: Year Cash Flow 1 300.00 2 300.00 3 300.00 4 100.00 5 200.00 6 300.00 7 400.00 8…
Q: Compute for the value of x so that the two cashflows will be equivalent. ... 2800 1400 AX 700 3X メ 4…
A: The PV of cashflow = C/(1+r)N Where C = cashflows r = interest rate = 10% N = time of cashflows…
Q: Question attached
A: Net Present Worth is the sum of present value of future cash flows.
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A: Discounted payback period is the most common capital budgeting technique which aims to ascertain…
Q: a. For the cash flows shown in the table, calculate the future worth in year 8 usingi = 10% per…
A: Given information : Year Cash flows 0 200 1 200 2 200 3 200 4 200 5 300 6 300 7 0…
Q: Investment Perlod 1 2 3. 4 $(1,000) $100 $100 $100 $100 $1,100 B (1,000) 264 264 264 264 264 (1,000)…
A: Net present value: NPV = Present value of cash inflows - present value of cash outflows. Formula:…
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A: Present value is the discounted value of future cash flows associated with the project. It is the…
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A: Outflow at time 0= ($10,000) Inflow in years 1 through 5= $3000 per year Time= 5 years Rate= 5%…
Q: Cash Flow Diagram Below: Find the present Worth for i =7% Compute annual series value for the cash…
A: Present Value = Cashflow/(1 + r)1 + Cashflow/(1+r)2 + ......+ Cashflow/(1+r)n = 600/(1.07)1 +…
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A: Here, Q = $2,000 If we put Q=2,000, the calculation of Inflows is as follows:
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Q: Problem 1 The cash flow shown in Figure 1 is in $1000 units. With an interest rate of 10%, determine…
A: Interest rate = 10% Year Cash flow 1 500000 2 600000 3 700000 4 800000 5 900000 6…
Q: F10 - 8% B B. B B B. |= 6.5 % 0 1 2 3 4 5 6 7 8 9 10 1 12 18 19 20 // A A A A 100,000
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A: Interest rate = 6.5% Year Cash flow 0 0 1 75 2 225 3 0 4 180.21
Q: 1. Determine the value of M so that the following cash flows will be equivalent at 10%. P 200 P 200…
A: Interest rate = r = 10% Present values of cashflows in both cashflow diagram should be same.
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A: Discount rate = 6.25% Year Cash flow 0 0 1 75 2 225 3 0 4 267.8
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A: Given Information: Figure1: Cash flows for year 1,2 and 3 are -$2000,-$4000 and $1000 respectively…
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A: Rate of return = IRR = that rate that makes the NPV as nil. We know that PV = FV/(1+r)^n Let the…
Q: 25. Giyen a set of cash flows shown in the tuble below, check the correct expression that can solve…
A: Given information: Year 0 1 2 3 4 Cash flows -500 1000 1000 1000 1000-F
Q: 1. Use MS Excel to determine the Present Worth of the following cash-flow diagram: a) At 7%, PW = b)…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: 2. Find what is required for the following cash flows. F =? 400 100 150 140 130 120 110 100 90 6 7 8…
A: given, r = 15% fv = pv×1+rn
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A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: 1. Compute F so the following cash flows have a future worth of 0. MARR = 12%. 500 500 500 + 1 3. 4…
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A: Interest rate = 10% semiannually compounded Let CFn = Cashflow in year n n = 10 years
Q: Calculate the internal rate of return (IRR) of the following cash flows: Year 0 1 2 3 4 5…
A: Solution: Computation of IRR Year Cash Flows IRR 0 -$1,650,000.00 12.38% 1 $330,000.00 2…
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A: Present value is the value of one unit of a currency when discounted at a particular rate.
Q: How many possible IRRs could you find for the following set of cash flows? Time 0 1 2 3…
A: IRR is the rate at which NPV of the project is zero
Q: For the arithmatic gradient of cash flow given below, if G= $550 , the value at year 23(V23) is:…
A: Value at year 23 = ? Interest Rate = 5% First Cash Flow = 1800 G = 550 N = 23
Q: Compute the IRR from the following set of cash flows: Year Cash Flow 0 (1000) 1 400 2 400 3…
A: Formulas:
Q: The cash flow for a company for their investment account is shown in the table below: Cash Year Cash…
A:
Q: Problem #2: Based on the following cash flow diagram, compute the equivalent value of these cash…
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Q: 650 540 к к 430 320 210 100 2 3 4 1 2 3 5 6 7 LO 4.
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A: present value of each cash flow = cash flow/(1+rate)^n
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A: The present value of a cash flow represents the worth of money at present time. It is also known as…
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- A local newspaper headline blared, “Shawn Smith Signed for $30 Million.” A reading of the article revealed that on April 1,2009. Shawn Smith, the former record breaking center from Hockey University, signed a $30 million package with the Edmonton Ice Knights. The terms of the contract were $3 million immediately, $2.4 million per year for the first five years (with the first payment after one year), and $3 million per year for the next five years (with the first payment at year 6). If Shawn’s interest is 8% per year, what would his contract be worth at the time he signs it?In 1984, Steve, a top college quarterback, signed a $40.4 million football contract structured as follows: for the years 1985 through 1990 inclusive, it paid him equal annual upfront payments which totaled $3.9 million. He also received an upfront signing bonus of $500K. The balance of the contract was paid out equally for 30 years (end of year) following the initial series of annual payments. On the other hand, Herschel, a star running back, signed a deal which paid him $18 million over four years as follows: 50% upfront with the balance of the contract paid out equally at the end of each year for the duration of the contract. Around the same time Lawrence, a bone crushing linebacker, received a 4-year, $24 million contract extension which included an upfront signing bonus of $6 million; $1.5 million/year in salary for the duration of the contract and a $300K payment at the beginning of each year for the next 40 years. Assume annual interest compounding, a discount rate of 10% and no…Icahn Tackel just signed an $11.5 million, 4-year contract with an NFLteam. He received a signing bonus of $2 million; $1.5 million at the end ofyear 1; $3 million at the end of year 2; $3.5 million at the end of year 3; and$1.5 million at the end of year 4. What is the present value of his contract ifmoney can earn 4 percent per year?
- The New York Yankees signed pitcher Masahiro Tanaka to a seven-year contract. Because Mr Tanaka was under contract in Japan with the Golden Eagles, the Yankees paid them $20,000,000 to release him. Mr Tanaka's contract calls for payments of $22,000,000 per year for six years and $23,000,000 in year seven. Assuming an 8 percent discount rate and that Mr Tanaka's salary is paid annually, starting 12 months after the fee paid the Golden Eagles, the present value of the Yankees' commitment, including the fee paid to the Golden Eagles, on the signing day of the contract is $. (Round your answer to two decimal places.)Ted and his partners have contracted to purchase the franchise rights, worth $73,000, to open and operate a specialty pizza restaurant called Pepperoni's. With a renewable agreement, the partners have agreed to make payments at the beginning of every month for five years. To accommodate the renovation period, Pepperoni's corporate office has agreed to allow the payments to start in one year, with interest at 11.42% compounded annually. What is the amount of each payment?On February 1, 2020, Baby Goats Unlimited took out a loan from Local City Bank for $300,000. It was a 2-year note at 5% interest, payable in 24 months with no payments due until then. Immediately, Baby Ġoats Unlimited transferred $150,000 of it to LivestockGen, a company that sells high tech goat breeding equipment. This represented a 50% down payment on an agreed upon $300k total contract to buy technology equipment. The remainder was put in a money market fund earning 1.2% interest until October 1, 2020 when the final payment was due to LivestockGen. On Oct 1 the remaining money was transferred from Baby Goats Unlimited to LivestockGen. Please prepare journal entries for the transactions described above.
- ted and his partners have contracted to purchase the franchise rights, worth $60000, to open and operate a specialty pizza restaurant called Pepperoni's. With a renewable agreement, the partners have agreed to make payments at the beginning of every three months for two years. To accommodate the renovation period, Pepperoni's corporate office has agreed to allow the payments to start in one year, with interest at 11.45 % compounded annually. What is the amount of each payment?6. Boilermaker Design, Inc. (BD) has an employment contract with its newly hired CEO. The contract requires a lump sum payment of $5 million be paid to the CEO upon the successful completion of her first three years of service. BD wants to set aside an equal amount of money at the end of each year to cover this anticipated payment and will earn 8% on the funds. How much must BD set aside each year for this purpose?The football coach at a midwestern university was given a 5-year employment contract that paid $800,000 the first year, and increased at an 8% uniform rate in each subsequent year. At the end of the first year’s football season, the alumni demanded that the coach be fired. The alumni agreed to buy his remaining years on the contract by paying him the equivalent present sum, computed using a 6% interest rate. How much will the coach receive?
- A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 6%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: Year Contract A $1,200,000 $1,250,000 $1,250,000 $1,000,000 Contract B $500,000 $750,000 $750,000 $3,000,000 Contract C $1,500,000 $1,500,000 $750,000 $750,000 Contract A Contract B Contract C 1 Pick any contract! 2 3 As his adviser, which contract would you recommend that he accept? 4 SABraxton Technologies, Incorporated, constructed a conveyor for A&G Warehousers that was completed and ready for use on January 1, 2024. • A&G paid for the conveyor by Issuing a $100,000, four-year note that specified 5% Interest to be paid on December 31 of each year, and the note is to be repaid at the end of four years. • The conveyor was custom-built for A&G, so Its cash price was unknown. • By comparison with similar transactions it was determined that a reasonable Interest rate was 10%. Required: 1. Prepare the journal entry for A&G's purchase of the conveyor on January 1, 2024. 2. Prepare an amortization schedule for the four-year term of the note. 3. Prepare the journal entry for A&G's third Interest payment on December 31, 2026. 4. If A&G's note had been an installment note to be paid in four equal payments at the end of each year beginning December 31, 2024, what would be the amount of each installment? 5. By considering the installment payment of requirement 4, prepare an…Dexter Construction Corporation is building a student condominium complex; it started construction on January 1, Year 1. Dexter borrowed $1 million specifically for the project by issuing a 10%, 5-year, $1 million note, which is payable on December 31 of Year 3. Dexter also had a 12%, 5-year, $3 million note payable and a 10%, 10-year, $1.8 million note payable outstanding all year. In Year 1, Dexter incurred costs as follows: January 1 $300,000 March 1 600,000 June 30 1,000,000 November 1 480,000 Calculate Dexter's capitalized interest on the student condominium complex for Year 1.