Pls. show the complete solution with cash flow diagrams What amount of money invested today at 15 % interest can provide the following scholoarships: Php 30,000 at the end of each year for 6 years, Php 40,000 for the next 6 years and Php50, 000 thereafter?

Pls. show the complete solution with cash flow diagrams What amount of money invested today at 15 % interest can provide the following scholoarships: Php 30,000 at the end of each year for 6 years, Php 40,000 for the next 6 years and Php50, 000 thereafter?

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

See similar textbooks

Related questions

Q: What lump sum would have to be deposited today into an account bearing interest of 10% per year to…

A: Lump sum payment today should be sufficient enough to enable withdrawals at T8,9,10 and 11. For that…

Q: The cost is $2,000 in year 1 and amounts increasing by 7% per year through year 10. Use an interest…

A: PRESENT VALUE FORMULA: PRESENT WORTH=∑NFUTURE VALUE1+RN R=RATE OF INTEREST N=NUMBER OF YEARS

Q: Calculate the equivalent uniform annual worth for the following set of cash flows. Round your answer…

A: Annual interest rate = 2% Period = 5 Years Initial investment = $ 755 Annual revenue = $ 503

Q: 1. An investor deposits P10,000.00 at the end of each year in an account which gives a nominal…

A: Annual deposit (A) = P 10000 Accumulated value = X n = 10 years r = 5% continuously compounded

Q: Calculate the future value of the following cash flow if it is invested @ 8% interest p.a. At the…

A: Future value can be calculated by multiplying cash flow with future value factor. Future value…

Q: For the following cash flow diagram, the equation that represents the equivalent at the end of (year…

A: Annuity refers to series of equalized payments that are either made at start or end of specific…

Q: The ABC Company has contracted to make the following payments: 500,000 immediately; 50,000 at the…

A: Year Cash flow PV 8% Present value 0 500,000 1.4693 734664 1 50,000 1.3604 68024.45 2…

Q: Find the total present worth of a series of cash flows with an annual interest rate of 2% per year.…

A: Annual interest rate = 2% Initial cash flow = 6628 Benefit at year 3 = 13477 Salvage value at year 4…

Q: Three investments cost $7,000 each and have the following cash flows. Rank them on the basis of…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: What is the present value of the following cash flows, if the discount rate is 10% annually?…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Calculate the present value of the following stream of cash flows: cash flows of $7,000, quarterly…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What is the present worth (t=0) of this series of cash flows (arithmetic series)?

A: Present Worth: It is the present value of the cash flows of an investment or a project. These cash…

Q: How much must you deposit each year to have P30,000 at the end of 12years with money worth 8%. Show…

A: “Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: In the given cash flow diagram : i) Calculate the equivalent amount of P. ii) Calculate the single…

A: Equivalent P means Total Present Value of all the future cash flows occurred during the five year…

Q: Consider the accompanying shown cash-flow diagram. Solve, a. If P = $1,000, A = $200, and i% = 12%…

A: Working note:

Q: 1. What is the future worth of a series of equal yearly deposits of Php 100,000 for 8 years in a…

Q: If interest is 7% compounded annually, calculate the present value of four year cash flows of…

A: Net present value is the sum of present value of future cashflows

Q: SUBJECT: ENGINEERING ECONOMICS INSTRUCTION: Answer the following questions by including the…

A: Effective annual rate is the interest actually earned on the investment or paid on the loan, as a…

Q: Draw a Cash Flow Diagram for P10,535 being loaned out at an interest rate of 12% per year over a…

A: Simple Interest per annum = Principle * Rate * Time = P10,535 * 12% * 1 = 1264.2 Cash flow diagram…

Q: What is the present value of a cash flow stream of $1,000 per year annually for 11 years that then…

A: Cash flow at end of 11 years = Cash flow of 11th year * (1+growth rate)/ discount rate - growth rate…

Q: What single payment at the beginning of year 2 is equivalent to an equal annual series of payments…

A: First payment is made at the end of Year 3 and will be made till Year 8. Hence, a total of 6 payment…

Q: Answer the following questions by including the appropriate cash flow diagrams, solution, and final…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Construct a cash flow diagram for the following cash flows: $10,000 outflow at time zero, $3000 per…

A: Outflow at time 0= ($10,000) Inflow in years 1 through 5= $3000 per year Time= 5 years Rate= 5%…

Q: n Net cash Flow 0…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: Determine the present worth of a maintenance contract that has a cost of $30,000 in year 1 and…

A: The above is a case of Uniform Gradient Present Worth or UGPW. This is also known as Discrete…

Q: If you deposit BD1,500 now, BD3,600 three years, BD2000 seven years, and BD1,800 nine years from now…

A: Deposit now = 1500 Deposit in three years = 3600 Deposit in seven years = 2000 Deposit in nine years…

Q: A constructed bridge requires no upkeep until the end of 2 years when P60,000 will be needed for…

Q: cashflow diagram.

A: The cash flow statement represents the inflow and outflow of cash from the company in a particular…

Q: Show the complete solution by showing your answer in terms of : • Cash flow diagram General Formula…

A: Here, Annual Payment is $70,000 Time Period is 12 years Interest Rate is 7% General Formula with…

Q: Draw a cash flow diagram

A: Cash flows in different periods are not comparable; therefore, we use the concept of time value of…

Q: A project has estimated annual net cash flows of $24,500. It is estimated to cost $147,000.…

A: Cash payback period represents the estimated time to recover the costs incurred on a project.

Q: DIRECTIONS: Solve the following problems neatly and legibly. Draw the necessary cash flow diagrams.…

A: Present value is the present worth of any sum of money to be received in the future at a specified…

Q: Consider an EOY geometric sequence of cash flows in which the first payment made was P2,000. This is…

A: Annuity refers to a constant stream of payments made at regular intervals for a defined period. The…

Q: Find the present worth of a future payment of 100,000 to be made in 10 years with an interest of 12%…

A: The concept of TVM states that money inherently has an interest-earning capacity which makes an…

Q: Determine the amount to be deposited in a fund now that earns 9% per year to provide for eight end…

A: Interest rate (r) = 9% Annual withdrawal (A) = RM 187.45 n = 8 years Let the amount to be deposited…

Q: The present value of the following cash flow stream is $7,300 when discounted at 8 percent annually.…

A: Cash Flow means the movement of cash either into or outside of the business.

Q: Find the amount at the end of two years and seven months if 6,000.00 is invested at 9% compounded…

A: Investment = 6000 Interest Rate = 9% Compounded Quarterly Number of compounding periods = 4

Q: Attach a complete solution. Draw the cash flow diagram. Suppose that P 4500 is deposited each year…

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: What is the present value of end-of-year cash flows of 1000 per year, with the first cash flow…

A: Present value is the sum of discounted future cashflow

Q: r the following: Show the cash flow diagram and solutions. I recieve PHP 500K 15 years from now.…

A: The present value of cash flow will give the amount needed today considering the interest rate for…

Q: What is the present value of end-of-year cashflows of $1,000 per year, with the first cashflow…

A: Present value is the value today of future cash flows discounted to present terms using a specified…

Q: The maintenance on a machine is expected to be $1,500 at the end of four years. This amount is…

A: Here we will have to use the concept of time value of money and then use the concept and formulas of…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Please use different formula not the excel format so I can take note of it. Thanks

Pls. show the complete solution with cash flow diagrams
What amount of money invested today at 15 % interest can provide the following scholoarships: Php
30,000 at the end of each year for 6 years, Php 40,000 for the next 6 years and Php50, 000 thereafter?
tn wi

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Answer the following: Show the cash flow diagram and solutions. I recieve PHP 500K 15 years from now. What amount should i invest if it will earn interest of 16% compounded annually during the 7years and 12 compounded quarterlyduring the next 7years?
An investor is told that the following cash flow profile has a present value of $11,000 assuming that the money received at each time period is placed into an account where it earns 18% annually. For what value of X will this be true? Year Cash Flow Click here to access the TVM Factor Table calculator. $ 1 2 3 4 5 6 7 $1,300 $1,600 X X $3,000 $1,600 $400 Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ±5.
A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money? Draw the cash flow diagramwith your solution.
What perpetual amount will you receive annually starting next year if you were able to deposit 130,000.00 five years ago at 10.5% interest compounded annually? Calculate it manually and show complete solution with formula used. Provide cash flow diagram. Write it in a paper please. ANS. P 22,487.65
QI. KNOWLEDGE AND UNDERSTANDING DRAWING CASH FLOW DIAGRAM Draw the ww m mm cash flow diagram for the following : 1. Assume that you want to deposit an amount (BD120,000.00) into an account three years from now in order to be able to withdraw BD750 per year for ten years starting four years from now. Assume that the interest rate is 4.5% per year. Construct the cash flow diagram. 2. Suppose that you want to make a deposit into your account now such that you can withdraw an equal amount (A1) of BD300 per year for the first five years starting one year after your deposit and a different annual amount (A2) of BD600 per year for the following three years. With an interest rate (i) of 5.5% per year, construct the cash flow diagram. 3. If you deposit BD1,500 now, BD3,600 three years, BD2000 seven years, and BD1,800 nine years from now in a savings account that pays 10% interest, how much would you have at the end of year 25? Construct the cash flow diagram.
What amount of money invested today at an interest of 14.22% compounded quarterly can provide the following scholarships: P30,000 at the end of each year for 6 years; P40,000 for the next 6 years, and P50,000 thereafter? Draw the cashflow diagram.MANUAL SOLVING PLEASE
What will the deposited amount be at the end of 5 years if P15,000 is deposited in an account earning 4% per year compounded quarterly? Follow the format. 1. Given: 2. Formula: 3. Required: 4. Cash flow Sketch: 5. Solution:
Justine Global Info Tech records the following cash flows at the end of each year for a project. If the firm's discount rate is 11%, what is the PRESENT VALUE of the project? Year Cash Flow P794,633.00 2 P542,149.00 P836,200.00 4 P716,080.00 5 P520,354.00
O Construct a cash flow diagram that represents the amount of money that will be accumulated in 1 year from an initial investment of Rs.1000 at an interest rate of 6% per year compounded quarterly. == 1.500.0
Solve for the value of X in the accompanying table, so that the cash flow A is equivalent to the cash flow B. Let i 8% per year. Cash flow A Cash flow B Year Cash flow, $ Year Cash flow, S 2. 8,000 2. 3. 3. 4. -2X 8,000 3X Select one: O a. 8381.6 O b. 9009.4 O c.7126.0 O d. 9637.2 O e. 7753.8 4.
Damien offers you a sequence of end-of-year cash flows for an investment as follows: Year 1 2 3 4 4 What is the value of the cash flows if the opportunity cost is 6 percent? (Round to the nearest dollar). Please click on the following link to access a blank worksheet Click to open:: O $8.392 $8.598 Cash Flow $4,000 $3,000 $2,000 $1,000 $8.734 $8.915
BON Cop & conenglating| Fow e e con hese of a machine that will produce cash savings of $31,000 per year for five years. At the end of sold to realize cash flows of $6,100, Interest is 10%. ASsume the cash flows occur at the end of each P at EVA of $I. PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) E he koal present walue of the cash savings. (Do not round intermediate calculations. Round your final answer to nearest whole r) Nexb > 900.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS