consider the cash flow series given. In computing the equivalent worth at n-4, which of thefollowing equations is incorrect?of$100 $100 $100$100 $100estion1 2 345.YearsSelect one:V4=[$100(P/A, i, 6)-$100(P/F, i, 4)](F/P, i, 4)b. V4=$100(F/A, i, 3)+$100(P/A, i, 2)a.- V4-[$100(F/A, i, 6)-$100(F/P, i, 2)(P/F, i, 2)d. V4-$100(F/A, i, 4)-$100+$100(P/A, i, 2)

From the given equations of the and the series of cash flows, we have to find out the incorrect…

consider the cash flow series given. In computing the equivalent worth at n-4, which of the following equations is incorrect? V4 $100 $100 $100 $100 $100 1 2 3. 5. Years Select one: a. V4=[$100(P/A, i, 6)-$100(P/F, i, 4)](F/P, i, 4) b. V4=$100(F/A, i, 3)+$100(P/A, i, 2) - V4=[$100(F/A, i, 6)-$100(F/P, i, 2)](P/F, i, 2) d. V4-$100(F/A, i, 4)-$100+$100(P/A, i, 2)

consider the cash flow series given. In computing the equivalent worth at n-4, which of the following equations is incorrect? V4 $100 $100 $100 $100 $100 1 2 3. 5. Years Select one: a. V4=[$100(P/A, i, 6)-$100(P/F, i, 4)](F/P, i, 4) b. V4=$100(F/A, i, 3)+$100(P/A, i, 2) - V4=[$100(F/A, i, 6)-$100(F/P, i, 2)](P/F, i, 2) d. V4-$100(F/A, i, 4)-$100+$100(P/A, i, 2)

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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In computing the equivalent present worth of each given cash flow series atperiod zero, which of the following expressions is incorrect?(a) P=$500(P/A, i, 4)(P/F, i, 4).(b) P = $500(F/A, i, 4)(P/F, i, 7).(c) P= $500(P/A, i, 1)-$100(P/A, i, 3).(d) P = $500[(P/F, i, 4) + (P/F, i, 5) + (P/F, i, 6) + (P/F, i, 7)].
Consider the following cash flows: Year Cash Flow 0 $32,500 123 13,300 18,400 10,700 What is the IRR of the cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return %
For the cash flow given, choose the equation that can be used to solve for P P = ? A 2 200 300 400 500 600 700 P=100(P/A, I, 10)+100(P/G, I, 10) - 100(P/F, 1, 1) P=100(P/A, I, 10)+100(P/G, I, 10) P= 100(P/A, i, 10)- 100(P/G, i, 10) P = (100(P/A, I, 10)+100(P/G, i, 10)) (P/F, 1, 1) 9 10 800 900 1000
Consider the following cash flows: Year Cash Flow 0 1 2 3 $19,400 10,400 9,320 6,900 What is the IRR of the above set of cash flows? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return 4 Prev
Consider the following cash flows: Year Cash Flow 0 –$ 32,500 1 14,300 2 17,400 3 11,700 What is the IRR of the cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
2. Compute the equivalent future and present worth for the cash flow in the following diagram with i=12% $100 3. 4 3. Given the following cash flow series, which of the following equation(s) can be used to find out the equivalent worth V at n=3? Explain your selection. V= ? $100 $100 2. 4 a) V=100(P/A, i, 6)-100(P/F,i,4) c) V= [100+P(P/A,i,6)]*(F/P,i,3)-100 b) V= 100(F/A,i,3)+P(P/A,i,3) d) V=100(F/A,i,6)*(P/F,i,3)-100
Consider the cash flow below in Figure 1. If this cash flow is equivalent to cash flow given Figure (2) and if the interest is 7%, find A? Select one: a. 756 b. 3000 c. 2500 d. 855 e. 533
Consider the following cash flows: Cash Flow Year 0 -$ 33,500 1 14,500 2 17,200 3 11,900 What is the IRR of the cash flows? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Internal rate of return %
Consider the following cash flows: Year Cash Flow 0 –$7,400 1 2,100 2 4,700 3 1,900 4 1,600 What is the payback period for the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Consider the following cash flows: Year Cash Flow 0 1 2 3 $33,000 13,900 17,800 11,300 Required: What is the IRR of the above set of cash flows? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Internal rate of return
Solve for the unknown quantity in Parts (a) through (d) that makes the equivalent value of cash outflows equal to the equivalent value of the cash inflow, F. a. If F= $9,500, G = $550, and N=6, then i = ? b. If F = $9,500, G= $550, and i = 3% per period, then N = ? c. If G = $1,100, N = 12, and i =6% per period, then F= ? d. If F = $7,700, N= 6, and i = 6% per period, then G = ? Click the icon to view the accompanying cash-flow diagram. E Click the icon to view the interest and annuity table for discrete compounding when i = 3% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 6% per year. a. The interest rate, i, is 10.5 %. (Round to one decimal place.) b. The number of years, N, is years. (Round to one decimal place.)
Which of the following cash flow streams could be evaluated using the basic Internal Rate of Return (IRR) method? A. CF1 $100 CF2 = -$20 CF3 - $20 B. CF1 =-$100 CF2 $20 CF3 $20 c. CF1 -$100 CF2 = $20 CFJ -$20 D. CF1 $100 CF2 = $20 CFJ $20 All of the above E.

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