The present value of the streams of cash flows shown in the following table, ass

Question

The present value of the streams of cash flows shown in the following table, assuming that the firms opportunity cost is 10% equal

28.) The present value of stream A equals

a. $16,353.89

b. $12,717.52

c. $7,924.14

d. $8,716.55

29.) The present value of stream B equals

a. $24,052.22

b. $17,655.90

c. $26,829.78

d. $19,421.49

30.) The present value of stream C equals

a. $60,764.28

b. $16,694.21

c. $18,363.64

d. $23,235.49

CASE A YEAR CASH FLOW 1   $ - 2,000 2   $ - 2,900 3    $ 4,000 4    $ 6,100 5    $ 8,000

Explanation / Answer

28)

PV

= -2000/1.1 - 2900/1.1^2 + 4000/1.1^3 + 6100/1.1^4 + 8000/1.1^5

= 7924.14

C is the answer

29)

PV = 9000/1.1 + 5100/1.1^2 + 5100/1.1^3 + 5100/1.1^4 + 5100/1.1^5 + 7000/1.1^6

= 26829.78

C is the answer

30)

PV = 11000/1.1 + 11000/1.1^2 + 11000/1.1^3 + 11000/1.1^4 + 11000/1.1^5 + 8100/1.1^6 + 8100/1.1^7 + 8100/1.1^8 + 8100/1.1^9 + 8100/1.1^10

= 60764.28

A is the answer

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.