Find the following values for a single cash flow. (Hint: You can use formulas, a financial...

 

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Find the following values for a single cash flow. (Hint: You can use formulas, a financial calculator, or excel to solve these problems.) a. The future value of $2,000 invested at 6% for one year b. The future value of $2,000 invested at 6% for five years c. The present value of $2,000 to be received in one year when the opportunity cost rate is 6% d. The present value of $2,000 to be received in five years when the opportunity cost is 6% Problem 2 Assume that you are asked to analyze two proposed capital investments - project A and project B. Each project requires a net investment outlay of $20,000 and the opportunity cost of capital for each project is 10%. The projects' expected net cash flows are presented below. Hint: After concluding parts a-c, complete the table below. After that, complete part d. You can use formulas, a financial calculator, or excel to find the solutions. Year 0 1 2 3 4 Payback NPV IRR Project A ($) Project B ($) (20,000) 13,000 6,000 6,000 1,000 a. Calculate each project's payback (20,000) 6,000 6,000 6,000 6,000 b. Calculate each project's net present value (NPV) c. Calculate each project's internal rate of return (IRR) using excel or a financial calculator. d. If you want to invest in one project (Project A or Project B), which one would you choose? Please Explain your answer. Find the following values for a single cash flow. (Hint: You can use formulas, a financial calculator, or excel to solve these problems.) a. The future value of $2,000 invested at 6% for one year b. The future value of $2,000 invested at 6% for five years c. The present value of $2,000 to be received in one year when the opportunity cost rate is 6% d. The present value of $2,000 to be received in five years when the opportunity cost is 6% Problem 2 Assume that you are asked to analyze two proposed capital investments - project A and project B. Each project requires a net investment outlay of $20,000 and the opportunity cost of capital for each project is 10%. The projects' expected net cash flows are presented below. Hint: After concluding parts a-c, complete the table below. After that, complete part d. You can use formulas, a financial calculator, or excel to find the solutions. Year 0 1 2 3 4 Payback NPV IRR Project A ($) Project B ($) (20,000) 13,000 6,000 6,000 1,000 a. Calculate each project's payback (20,000) 6,000 6,000 6,000 6,000 b. Calculate each project's net present value (NPV) c. Calculate each project's internal rate of return (IRR) using excel or a financial calculator. d. If you want to invest in one project (Project A or Project B), which one would you choose? Please Explain your answer.

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Solution Apply KVL in input section 10105k1 200k x1 071 2k x1 0 10105k ... View the full answer