Question: Please do both ways because I am so confused Exercise #5: PV of two cash flows A. How much would you pay today for $4000

Please do both ways because I am so confused

Please do both ways because I am so confused Exercise #5: PV

Exercise #5: PV of two cash flows A. How much would you pay today for $4000 in Y3 and $2000 in Y5? r=8% Draw Timeline: Method 1: PV $2000 from Y5 to Y3, add to $4000; PV the total to YO Method 2: PV $2000 from Y5 to YO; PV $4000 from Y3 to YO; add the two B. How much would you pay in Y1 for $4000 in Y3 and $2000 in Y5? i=8%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

PLEASE COMPLETE NO LATER THAN 11/04 @8am Each question(1,2,& 3) must be a minimum of 200 words. Please EXPLAIN answers in FULL detail and make answers knowledgeable based off the attached reading,...

1. From the scenario, cite your forecasting conclusions that support TFC?s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario...

1)Widget Manufacturing has just completed a major change in its quality control (QC) process. Previously, QC inspectors had reviewed products at the end of each major process, and the company's 10 QC...

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

See page 129- 137 on attachment for more details there are five steps to the project. Step 1: Create the loan amortization schedule for the property. Step 2: Create the depreciation schedule. Step 3:...

Hi, please provide detailed solution for these two questions. Thank you. RSM 333 Spring 2017 Assignment #2 Due Monday, February 6th @ 4pm in Commerce Office Problem #1: (20 marks) Project Analysis /...

I need a step by step solutions for the 10 problems in the excel file. The correct answers are provided I only need the solutions steps. Subject is Finance (options valuation) On March 2, a Treasury...

Hi, I have an exam right now I need your help I am attaching the questions and I need you to answer it correctly within one and half hour I can not accept more than three mistakes in MCQS because...

Hi please solve this questions and please do not paste the answers on the thread.Thank you FIN534 Week 8 Scenario Script: An Overview of cash dividends; Procedures for Cash Dividends; and The pros...

Design and Draft the report and presentation to adopt the Management Information System at any University. You are here to understand and analyze the internal process, key roles, stack holders, and...

In deriving the three point formulas, we use Lagrange polynomial. L'o(x) at x = x, is (notice the derivative of Lo with respect to x) Select one: . 2h 3 b. -3 2h C. 2h d. 0

13. Write an assignment statement that increases the contents of the decSalary variable by 2%.

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...