Please answer every question with the excel formula =PV(Rate, Nper, PMT, FV, Type)

For the last two questions, you options are (Should, should not), (the total you gained from the first question), and (smaller, greater) Respectfully.

At the end of 2015, Uma Corporation is considering undertaking a major long-term project in an effort to remain competitive in its industry. The production and sales departments have determined the potential annual cash flow savings that could accrue to the firm if it acts soon. Specifically, they estimate that a mixed stream of future cash flow savings will occur at the end of the years 2016 through 2021. The years 2022 through 2026 will see consecutive and equal cash flow savings at the end of each year. The firm estimates that its discount rate over the first 6 years will be 7%. The expected discount rate over the years 2022 through 2026 will be 11%. The project managers will find the project acceptable if it results in present cash flow savings of at least $860,000. The following cash flow savings data are supplied to the finance department for analysis. End of year Cash flow savings 2016 $110,000 2017 120,000 2018 130.000 2019 150,000 2020 160,000 2021 150.000 2022 90,000 2023 90,000 2024 90,000 2025 90,000 2026 90,000 a. Determine the value of the future cash flow savings expected to be generated by this project. Discount rate for years 2020 - 2025 Discount rate for years 2026 - 2030 7% 11% Present Value S Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year (n) 1 2 3 4 5 6 7 8 9 Cash Flow 110,000 120,000 130,000 150,000 160,000 150,000 90,000 90,000 90,000 90,000 90,000 10 11 TOTAL: S Based solely on the criteria set by management, the firm of the expected future savings total undertake this project as the present value than the $860,000 hurdle. which is The concept of interest-rate risk states that changes in the interest rates may adversely affect the value of an investor's securities portfolio. While this is not a securities problem, the relationship between the change in rates and the subsequent change in the value of an asset hold true. If the the interest rates were to rise just 1 percent, the present value of the expected savings would fall below the required $860,000 limit set by mangement. Is the above statement true or false? TRUE At the end of 2015, Uma Corporation is considering undertaking a major long-term project in an effort to remain competitive in its industry. The production and sales departments have determined the potential annual cash flow savings that could accrue to the firm if it acts soon. Specifically, they estimate that a mixed stream of future cash flow savings will occur at the end of the years 2016 through 2021. The years 2022 through 2026 will see consecutive and equal cash flow savings at the end of each year. The firm estimates that its discount rate over the first 6 years will be 7%. The expected discount rate over the years 2022 through 2026 will be 11%. The project managers will find the project acceptable if it results in present cash flow savings of at least $860,000. The following cash flow savings data are supplied to the finance department for analysis. End of year Cash flow savings 2016 $110,000 2017 120,000 2018 130.000 2019 150,000 2020 160,000 2021 150.000 2022 90,000 2023 90,000 2024 90,000 2025 90,000 2026 90,000 a. Determine the value of the future cash flow savings expected to be generated by this project. Discount rate for years 2020 - 2025 Discount rate for years 2026 - 2030 7% 11% Present Value S Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year (n) 1 2 3 4 5 6 7 8 9 Cash Flow 110,000 120,000 130,000 150,000 160,000 150,000 90,000 90,000 90,000 90,000 90,000 10 11 TOTAL: S Based solely on the criteria set by management, the firm of the expected future savings total undertake this project as the present value than the $860,000 hurdle. which is The concept of interest-rate risk states that changes in the interest rates may adversely affect the value of an investor's securities portfolio. While this is not a securities problem, the relationship between the change in rates and the subsequent change in the value of an asset hold true. If the the interest rates were to rise just 1 percent, the present value of the expected savings would fall below the required $860,000 limit set by mangement. Is the above statement true or false? TRUE