Homework Helper

Not Rated (0)

$17/per page/

About Homework Helper

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Art & Design,Chemistry,Economics,Essay writing Hide all
Teaching Since: Apr 2017
Last Sign in: 418 Weeks Ago, 5 Days Ago
Questions Answered: 3232
Tutorials Posted: 3232

Education

  • MBA,MCS,M.phil
    Devry University
    Jan-2008 - Jan-2011

  • MBA,MCS,M.Phil
    Devry University
    Feb-2000 - Jan-2004

Experience

  • Regional Manager
    Abercrombie & Fitch.
    Mar-2005 - Nov-2010

  • Regional Manager
    Abercrombie & Fitch.
    Jan-2005 - Jan-2008

Category > Business & Finance Posted 10 Jun 2017 My Price 11.00

This question introduces you to the concept of an annuity with growth.

This question introduces you to the concept of an annuity with growth. The formulae is given on p.3, equation (7), of the Note on Formulae, but I would encourage you to try doing it in Excel as well. (If the first cash flow is C, the next one will be C(1+g), and so on, where g is the growth rate in cash flow). As an example, the present value of an annuity that starts one year from now at $100, and grows at 5%, with the last cash flow in year 10, when the discount rate is 7%, is $860. Confirm this before attempting the problem using both the formula and excel. What is the NPV of of a new software project that costs $900,000 today, but has a cash flow of $180,000 in year 1 that grows at 7.0% per year till year 20? Similar by PriceMinus" style="font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-stretch: inherit; line-height: inherit; color: rgb(0, 102, 153); outline: none; left: auto; opacity: 1; top: auto; margin: 0px 0px 0px 3px !important; padding: 0px !important; border: 0px !important; font-weight: 700 !important; vertical-align: baseline !important; text-decoration: underline !important; box-sizing: border-box !important; bottom: auto !important; clip: auto !important; clear: none !important; display: inline-block !important; float: none !important; height: auto !important; max-height: none !important; max-width: none !important; min-height: 0px !important; min-width: 0px !important; overflow: visible !important; position: static !important; right: auto !important; text-transform: uppercase !important; -webkit-transform: none !important; transform: none !important; visibility: visible !important; width: auto !important; zoom: 1 !important; z-index: auto !important; background: 0px 0px !important;">INVESTMENTS earn 7.6% per year.

CommentYour answer

    Best Answer
  • AnonymousAnonymous answered this 9 minutes later660 answers• 65% Best Answer
    Particulars Time PVF Amount PV
    Cash Outflows - 1.0000 (900,000.00) (900,000.00)
    PV of Cash Outflows       (900,000.00)
    Cash Inflows 1.00 0.9294 180,000.00 167,286.25
    Cash Inflows 2.00 0.8637 192,600.00 166,353.42
    Cash Inflows 3.00 0.8027 206,082.00 165,425.80
    Cash Inflows 4.00 0.7460 220,507.74 164,503.35
    Cash Inflows 5.00 0.6933 235,943.28 163,586.05
    Cash Inflows 6.00 0.6444 252,459.31 162,673.86
    Cash Inflows 7.00 0.5988 270,131.46 161,766.75
    Cash Inflows 8.00 0.5565 289,040.67 160,864.71
    Cash Inflows 9.00 0.5172 309,273.51 159,967.69
    Cash Inflows 10.00 0.4807 330,922.66 159,075.68
    Cash Inflows 11.00 0.4468 354,087.24 158,188.64
    Cash Inflows 12.00 0.4152 378,873.35 157,306.55
    Cash Inflows 13.00 0.3859 405,394.49 156,429.37
    Cash Inflows 14.00 0.3586 433,772.10 155,557.09
    Cash Inflows 15.00 0.3333 464,136.15 154,689.67
    Cash Inflows 16.00 0.3097 496,625.68 153,827.09
    Cash Inflows 17.00 0.2879 531,389.47 152,969.32
    Cash Inflows 18.00 0.2675 568,586.74 152,116.33
    Cash Inflows 19.00 0.2486 608,387.81 151,268.10
    Cash Inflows 20.00 0.2311 650,974.96 150,424.60
    PV of Cash Inflows       3,174,280.33
    NPV       2,274,280.33

Answers

Homework Helper
Not Rated (0)
Status NEW Posted 10 Jun 2017 08:06 AM My Price 11.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l

Not Rated(0)