Cash Flow Equivalence in Uniform Series of Payment If the university's College of Engineering can earn 5% on itsinvestments, how much should be in its savings account to fund one $10,000 scholarship each year for 4 years? (a)Draw Cash Flow Diagram. Solve by using equation. (b) Write compound interest factors for this example. Includescreenshot of compound interest factor table and mark the factor that you used. (ex) 4 = P(-,5%,n) (F/A, 5%, 4) :AUniform Series Payment Compound Amount Factor. (c) Determine the value using Excel spreadsheet. i. Includescreenshots of your Excel spreadsheet. ii. Include the Excel spreadsheet formula you used to calculate results(ex) FV(i,n, PMT, PV)Cash Flow Equivalence in Uniform Series of PaymentIf the university's College of Engineering can earn 5% on its investments, how much shouldbe in its savings account to fund one $10,000 scholarship each year for 4 years?(a) Draw Cash Flow Diagram. Solve by using equation.(b) Write compound interest factors for this example. Include screenshot of compoundinterest factor table and mark the factor that you used.(ex) A P (P/A, 5%, n)(F/A, 5%, 4): Uniform Series Payment Compound Amount Factor.(c) Determine the value using Excel spreadsheet.i.Include screenshots of your Excel spreadsheet.ii. Include the Excel spreadsheet formula you used to calculate results(ex)=FV(i, n, PMT, PV)

Name: Cash Flow Equivalence in Uniform Series of Payment If the university'
Uploaded: 2024-03-20T06:50:59.000Z
Channel: Bartleby
Description: Cash Flow Equivalence in Uniform Series of Payment If the university's College of Engineering can earn 5% on itsinvestments, how much should be in its savings account to fund one $10,000 scholarship each year for 4 years? (a)Draw Cash Flow Diagram.

Future value:Future value, which takes interest or growth over time into account, is the estimated…

Business

Finance

If the university's College of Engineering can earn 5% on its investments, how much should be in its savings account to fund one $10,000 scholarship each year for 4 years? (a) Draw Cash Flow Diagram. Solve by using equation. (b) Write compound interest factors for this example. Include screenshot of compound interest factor table and mark the factor that you used. (ex) A =P (P/A, 5%, n) (F/A, 5%, 4): Uniform Series Payment Compound Amount Factor. (c) Determine the value using Excel spreadsheet. i. Include screenshots of your Excel spreadsheet. ii. Include the Excel spreadsheet formula you used to calculate results (ex)=FV(i, n, PMT, PV)

If the university's College of Engineering can earn 5% on its investments, how much should be in its savings account to fund one $10,000 scholarship each year for 4 years? (a) Draw Cash Flow Diagram. Solve by using equation. (b) Write compound interest factors for this example. Include screenshot of compound interest factor table and mark the factor that you used. (ex) A =P (P/A, 5%, n) (F/A, 5%, 4): Uniform Series Payment Compound Amount Factor. (c) Determine the value using Excel spreadsheet. i. Include screenshots of your Excel spreadsheet. ii. Include the Excel spreadsheet formula you used to calculate results (ex)=FV(i, n, PMT, PV)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...

See similar textbooks

Similar questions

SUBJECT: ENGINEERING ECONOMICS INSTRUCTION: Answer the following questions by including the appropriate cash flow diagrams (graph it), solution, and final answer. 1. What equal-annual-payment series is required in order to repay each given present amount? (a) Php 1.5M in four years at 7% interest compounded quarterly, (b) Php 2.0M in five years at 8% interest compounded semi-annually, (c) Php 2.5M in six years at 5% interest compounded annually, and (d) Php 3.5M in 15 years at 7% interest.
Make the cash flow diagram and solve: What is the maximum amount that can be loaned at 5 percent interest if it is repaid for Year 1-500 Year 2-1000 Year 3-1500 Year 4-2000 Year 5- 2500
Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two, $2,500 in year three, $3,000 in year four and $2,000 in year five. What is the NPV using 8% as the discount rate?
Solve for the value of X in the accompanying table, so that the cash flow A is equivalent to the cash flow B. Let i 8% per year. Cash flow A Cash flow B Year Cash flow, $ Year Cash flow, S 2. 8,000 2. 3. 3. 4. -2X 8,000 3X Select one: O a. 8381.6 O b. 9009.4 O c.7126.0 O d. 9637.2 O e. 7753.8 4.
Determine the value of W on the right-hand side of the accompanying diagram that makes the two cash-flow diagrams equivalent when /=9% per year. Q $1,150 30 1 2 End of Year $1,150 3 4 5 $1,150 W Click the icon to view the interest and annuity table for discrete compounding when i=9% per year. End of Year The equivalent amount, "W", of the cashflows provided in the diagram is $ 1739. (Round to the nearest dollar.) W OU
Problem #1: For the following cash flows, (receipt of 10,000 at t=0; payment of 15,000 at t=1; receipt of 12,000 at t=2; and receipt of 12,000 at t-6), various interest rates are applied: 3% for year 1; 4% for year 2, 5% for years 3 and 4, and 6% for years 5 and 6. Find the equivalent net value at t=5, i.e., Fs=? 10,000 12,000 3% 4% 5% 0 1 2 I 15,000 F₂-? I 12,000 5% 6% 6% m
What is the present value of a stream of 5 end-of-year annual cash receipts of $3,200 given a discount rate of 13%? (Round your final answers to 2 decimal places.) a. Use the appropriate table (Appendix C: Table 1, Table 2) to answer the above question. b. Use the appropriate built-in function in Excel to answer the above question. a. b. PV of annuity PV of annuity
Problem #1: For the following cash flows, (receipt of 20,000 at t=0; payment of 120,000 at t-1; receipt of 100,000 at t-3; and receipt of 60,000 at t=5), various interest rates are applied: 4% for year 1: 6% for years 2 and 3, and 5% for years 4 and 5. Find the equivalent net value at t-5, i.e., F-? 4% 6% 6% 5% 5%| 20,000 60,000 -120,000 100,000
Can you tell me how to get the 0% to 25% rate numbers? I have to plot the NPV profiles. Year Project A Discounted cashflow Discounted cashflow 0 -50,000 -$50,000.00 -$50,000.00 1 25,000 $22,727.27 $23,584.91 2 20,000 $16,528.93 $17,799.93 3 10,000 $7,513.15 $8,396.19 4 5,000 $3,415.07 $3,960.47 5 5,000 $3,104.61 $3,736.29 NPV $3,289.02 $7,477.79 IRR 14% 14% 10% 6% Year Project B Discounted cashflow Discounted cashflow 0 -50,000 -$50,000.00 -$50,000.00 1 15,000 $13,636.36 $14,150.94 2 15,000 $12,396.69 $13,349.95 3 15,000 $11,269.72 $12,594.29 4 15,000 $10,245.20 $11,881.40 5 15,000 $9,313.82 $11,208.87 NPV $6,861.80 $13,185.46 IRR 15% 15% Rate Project A Project B 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25%
4. A set of cash flows are given in the table below. Using the principles of equivalence, determine the value "Y" for an interest rate of 10% compounded annually to make a break-even. Year 1 2 3 4 5-10 Cash flow in $ -5,000 00 0-1,000 Y
Damien offers you a sequence of end-of-year cash flows for an investment as follows: Year 1 2 3 4 4 What is the value of the cash flows if the opportunity cost is 6 percent? (Round to the nearest dollar). Please click on the following link to access a blank worksheet Click to open:: O $8.392 $8.598 Cash Flow $4,000 $3,000 $2,000 $1,000 $8.734 $8.915
Asap