Purchase Solution

Present value of net cash flow

Not what you're looking for?

Ask Custom Question

What is the present value of the following net cash flows if the discount rate is 12%:

Year Cash Flow
1-5 $10,000 each year
6-10 $15,000 each year
11-15 $17,000 each year

Purchase this Solution
Solution Summary

This post shows how to calculate the present value of net cash flow

Solution Preview

See the attached file. Thanks

Year Cash Flow Discount Factor Discounted Cash Flow
1 10000 0.893 $8,928.57
2 10000 0.797 ...

Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Discounted cash flow analysis discounts project investments

    The difference between the present value of cash inflows and present value of cash outflows is called Net Present Value.

  • Analysis of equipment NPV and effect on cash flow

    The company should buy the equipment because the net present value from the purchase of new equipment is positive. It shows that the present value of the expected cash flow from the new equipment exceeds the cost of the new project.

  • Break even

    124655 Compute the net amount of annual cash flow required to break even.

  • Finding out Calculations of NPV, IRR and Contribution Margin

    of net present value, internal rate of return and contribution margin.

  • NPV at The Danforth Tire Company

    Net Present Value To calculate the NPV ( Net Present Value) we discount the cash flow at the given discount rates discount rate= 12% Year Cash flow PV factor @12.% Discounted cash flow=

  • ROI

    Net cash flow time line -75,000 50,000 50,000 50,000 50,000 50,000 Net Present Value Discount rate 12.00% First, we need to find the present value for the total projected cash flow by using the above discount

  • Net Present Value

    Net Present Value To calculate the NPV ( Net Present Value) we discount the cash flow at the given discount rates discount rate= 12% Year Cash flow PV factor @12.% Discounted cash flow=

  • Capital Budgeting Decisions

    Net Present Value Required rate of return = 10.00% First, we need to find the present value for the total projected cash flow by using the above required rate of return.

  • Capital Budgeting - NPV, Payback Period

    Value @ 9% 1 $ 6,000 $ 5,505 2 7,000 5,892 3 9,000 6,950 4 13,000 9,210 Present value of inflows 27,557 Present value of outflows (cost) 25,000 NPV (net present value) $ 2,557 Project H Year Cash Flow Present Value @

  • Calculating NPV and IRR of cash flows

    Solution : Present Value = Future Value/(1+r)^n r is rate of discount (like 0.06 for 6%) n is number of period By applying this formula we can get present value of any cash flow at r rate of interest and n period.

View More Related Solutions