Present Value
Not what you're looking for?
Please help answer the following problems.
A. Find the present values of the following cash flow streams at 8% compounded annually.
0 1 2 3 4 5
------------------------------------------------
Stream A $0 $100 $400 $400 $400 $300
Stream B $0 $300 $400 $400 $400 $100
B. What are the PVs of the streams at 0% compounded annually?
Purchase this Solution
Solution Summary
This solution helps calculates present value of cash flows.
Solution Preview
Please see the attached file:
a. Find the present values of the following cash flow streams at 8% compounded annually.
0 1 2 3 4 5
Stream A $0 $100 $400 $400 $400 $300
Stream B $0 $300 $400 $400 $400 $100
To calculate the PV ( Present Value) we discount the cash flow at the given discount rate
Stream A
discount rate= 8%
Year Cash flow PV factor @8.% Discounted cash flow=
0 $0 1 0.00 =0*1
1 $100 0.925926 92.59 =100*0.925926
2 $400 ...
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media