Question: Open the attached Word document to find 2 questions. 1. Future Value and Present Value of Uneven Cash flows- 12 points 2. Growth Perpetuity 8


Open the attached Word document to find 2 questions. 1. Future Value and Present Value of Uneven Cash flows- 12 points 2. Growth Perpetuity 8 points For each question draw the timeline and show your work. You can upload your completed Word document or upload pictures of your work (combined to one document). You can only upload ONE document. 1. Future Value and Present Value of Uneven Cash flows- 12 points You will recerve $5000 in 2 years and $10000 in 10 years from now. Compute the value of these cash flows at points in time noted below if the interest rate is 8% per year. For each question draw the timeline and show your work. a) Value of these two cash flows at today at t=0 b) Value of these two cash flows fifteen years from today at t=15 Compute the present value of a growth perpetuity whose first payment of $100 is received 4 years from today. Payments grow at 5% per year thereafter and the rate of interest is 10% per year
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
