The projected cash flows in the first year of operation for Angry Birds Inc. are given below. Determine the expected cash flow in the first year. Cash Flows (USD) Probability of cash flow 10,000 0.5 15,000 0.25 -20,000 0.25
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The projected
Determine the expected cash flow in the first year.
|
Cash Flows (USD) |
Probability of cash flow |
|
10,000 |
0.5 |
|
15,000 |
0.25 |
|
-20,000 |
0.25 |
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Solved in 3 steps
- Kabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Year Cash Outflow Cash Inflow Net Cash Flow Cumulative Cash FlowKabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Cumulative Cash Cash Outflow Çash Inflow Net Cash Year Flow Flow 2 years and 10 months Ob. 2 years and 9 months 2 years and 11 months Od. 2 years and 8 monthsConstruct a cash flow diagram for the following cash flows: $10,000 outflow at time zero, $3000 per year inflow in years 1 through 5 at an interest rate of 10% per year, and an unknown future amount in year 5.
- Determine the rate of return per year for the cash flow series shown below. Year Cash Flow, $ -$100,000 1 -$9,000 $45,000 3 $55,000 4 $75,000 Between 12% and 13% Between 19% and 20% Between 16% and 17% Between 10% and 11% Between 14% and 15%Consider the following timeline detailing a stream of cash flows: Date Cash Flow $1,000 $2,000 O $6,326.40 $ 7,136.73 O $5,022.10 O $5,423.87 0 O $ 6,832.51 1 If the current market rate of interest is 8% per year, then the future value (FV) of this stream of cash flows in year 3 is closest to O $ 6,000.00 2 $3,000 3 FV=?We want to determine the discount rate that sets the present value of the future net cash flow. Suppose that we start with a 15% discount rate and calculate the present value of the cash flow stream. Initial Cash Outflow is $1,00,000. Find IRR. Year Net Cash flows 1 $34,432 2 $39,530 3 $39,359 4 $32,219
- Calculate the internal rate of return for a $300.0m cash outflow at the end of year 0 and a $716.0m cash inflow at the end of year 5. 16% 20% 18.5% 19%An arithmetic cash flow gradient series equals $450 in year 1, $550 in year 2, and amounts increasing by $100 per year through year 12. At i= 9% per year, determine the present worth of the cash flow series in year 0. The present worth of the cash flow series in year O is $ 944.15The FASB concepts statement relating to cash flow information introduces the concept of expected cash flows when using present values for accounting measurements. Assume that Smith Company determined that it has a 40% probability of receiving $10,000 one year from now and a 60% probability of receiving $10,000 two years from now. (Click here to access the PV and FV tables to use with this problem.) Required: Using the FASB concepts, calculate the present value of the expected cash flows assuming a 12% interest rate compounded annually. Round your answer to two decimal places. $
- For the cash flows shown, determine: (a) the number of possible /* values (b) the value displayed by the IRR function (c) the external rate of return using the MIRR method if i;= 18% per year and ib = 10% per year. Year Revenue, $ 0 1 2 3 4 о 25,000 19,000 4,000 28,000 Cost, $ -6,000 -30,000 -7,000 -6,000 -12,000 The number of i* values according to the rule of signs test is (Click to select) ✓ According to the cumulative cash flow sign test, /* value is (Click to select) The IRR function displays i* value as %. The external rate of return according to the MIRR method is %.The following cash flow diagram represents an investment of Php 400 and revenue of x at the end of years one and two. Given a discount rate of 15% compounded annually, what must “x” approximately be for this set of cash flows to have a net present worth of zero?Find the value of the unknown quantity Z in the following diagram, such that the equivalent cash outflow equals the equivalent cash inflows when i= 18% per year, compounded semiannually. Ycars