### Compare the calculated present values

Assignment Help Finance Basics
##### Reference no: EM132049762

Question: Present value - Mixed streams Consider the mixed streams of cash flows shown in the following? table

 Cash Flow Stream Year A B 1 \$22,500 \$7,500 2 \$18,750 \$11,250 3 \$15,000 \$15,000 4 \$11,250 \$18,750 5 \$7,500 \$22,500 Totals \$75,000 \$75,000

(a) Find the present value of each stream using a 11?% discount rate

(b) Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling ? \$75,000 in each case.

(c) Show computations using an Excel Spreadsheet. When solving for the present value of a single cash flow using an Excel? spreadsheet, you will need to enter the values of? Rate, Nper,? Fv, Pmt, and Type into the present value function

#### Questions Cloud

 What if the appropriate discount rate is ten percent : (Present value of a growing? perpetuity) What is the present value of a perpetual stream of cash flows that pays \$2,500 at the end of year one and the annual. What is the molar solubility of m : The Ksp of some metal hydroxide, M(OH)3, is 2x10-31 at 25oC. What is the molar solubility of M(OH)3(s) in a solution that is buffered at pH 4.47 at 25oC? What will be the ph of the new solution : If 22.0 mL of 0.182 M NaOH solution is added to 100. mL of solution which is 0.100 M in HA (Ka = 5.00x10-5) and 0.100 M in NaA, what will be the pH of the new Find the minimum amount of wages that garro must receive : Under the Fair Labor Standards Act, the minimum amount of wages that Garro must receive for a 40-hour workweek is Compare the calculated present values : Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling ? \$75,000 in each case. What would the mole fraction of benzene be : What is the Molar Mass of the unknown? Calculate what the new boiling point would be. What would the mole fraction of Benzene be? How many culumns wide would you expect the g-block to be : The current periodic table has only four blocks corresponding to different subshell types, but if the table were extended one more period Why do the difference in the pvs occur : Present value for various discounting periods Find the present value of \$500 due in the future under each of these conditions. What amount of warranty expense will appear on the income : Other accrued liabilities-warranties - What amount of warranty expense will appear on the income statement for the year ended December 31, 2013

### Write a Review

#### What rate would you expect to see on a treasury bill

Suppose the real rate is 2.5% and the inflation rate is 4.7%. What rate would you expect to see on a Treasury bill?

#### Diastolic blood pressure for a random sample

The mean diastolic blood pressure for a random sample of 80 people was 88 millimeters of mercury. If the standard deviation of individual blood pressure readings is known to be 10 millimeters of mercury, find a 99% confidence interval for the true..

#### What is the cash conversion cycle

What is the Cash Conversion Cycle (CCC)? Name the components of the CCC and explain why the CCC is important to business.

#### What role does uncertainty play

How would the recognition, policy, and impact lags differ with regard to monetary and fiscal policy?- What role does uncertainty play?

#### Find cost of common equity financing using capm-sml formula

Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company.

#### What is the cost of common stock for whitewall

What is the cost of common stock for Whitewall?

#### Compute the slack time for activity d

what is the minimum distance that connects all the nodes, compute the slack time for activity D and what is the average time spent by a person in this system?

#### Characteristics implies about age of a common ancestor

What do you think having many shared characteristics vs very few shared characteristics implies about age of a common ancestor?

#### What if the company finds out the monthly rent

What if the company finds out the monthly rent will increase to \$3,000, what budgets are affected? Why? What is the New Net income (Loss)?

#### How can vogl co avoid such a risk

Assume that the Canadian dollar net inflows may range from C\$20 million to C\$40 million over the next year. Explain the risk of hedging C\$30 million.

#### Probability distribution and its relation to risk

Prepare a PowerPoint Presentation to define the following terms, using graphs or equations to illustrate your answers where feasible.

#### What is the equivalent annual cost of the tool

If the discount rate is 10% and the lathe will last for 5 years, what is the equivalent annual cost of the tool?

#### Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!