Problem 8.4 Compute the unknown values for each of the following cash-flow diagrams (time shown in years and interest compounded annually). (a) Figure 8.32 (b) Figure 8.33 (c) Figure 8.34 (d) Figure 8.35 Figure 8.32 Figure 8.33 $25 $25 $25 $25 $25 P $3.000 1 2 3 4 Figure 8.34 0 i = 6% F = ? 5 F Figure 8.35 + 2 3 4 i=8% P = ? A A A A A A $100 $100 $100 $50 $50 1 2 4 5 $5.000 i = 5% A = ? 6 a 1 2 3 4 5 i = 10% P = ?

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…

Question 23 What is the future value of the following cash flow stream at a rate of 8%? Do not round intermediate calculations. Years: CFS: er question will save this response. O a. $17,358 O b. $15,655 OC. $15,750 O d. $16,672 Oe. $17,185 0 SO 1 2 3 4 $1,350 $3,750 $4,500 $6.250

Question 6 Consider a series of cash flows as follows: £750 received one year from now, £1,200 received three years from now, and £1,250 received six years from now. If the discount rate is 6%, to the nearest £0.01 what is the (i) present value of the cash flows and (ii) the future value in ten years of the cash flows? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a (i) £2,596.29 and (ii) £4,386.38 b (i) £2,395.41 and (ii) £4,289.41 (i) £2,596.29 and (ii) £4,649.56 None of the above (1) £2,395.41 and (ii) £4,046.99

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 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

Consider the following cash flows: Year Cash Flow $32,000 13,700 18,000 11,100 a. What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV at a discount rate of 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV at a discount rate of 20 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the NPV at a discount rate of 30 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) а. Net present value b. Net present value C. Net present value d. Net present value 123

Consider the following cash flows: Year 0 1 2 Cash Flow -$ 32,500 13,800 17,900 11, 200 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 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

Uneven Cash Flow Stream Year Cash Stream A Cash Stream B 1 $100 $300 2  400  400 3  400  400 4  400  400 5  300  100 What is the value of each cash flow stream at a 0% interest rate? Round your answers to the nearest cent.Stream A $   _______Stream B $   _______