A B C D E F G H JK L M N P R S T U PRESENT VALUE OF $1.00 Per. 4% 6% 1 0.9615 0.9434 2 0.9246 3 0.889 4 0.8548 0.7921 5 0.8219 0.7473 8% 0.9259 0.89 0.8573 0.8396 0.7938 0.735 0.6806 9% 0.9174 0.6209 0.5935 10% 11% 0.9091 0.9009 0.8929 0.87 0.8417 0.8264 0.8116 0.7972 0.76 0.7722 0.7513 0.7312 0.7118 0.66 0.7084 0.683 0.6587 0.6499 12% 15% 1 2 3 0.6355 0.57 4 0.5674 0.5 5 PRESENT VALUE OF A SERIES OF $1.00 CASH FLOWS Per. 4% 6% 8% 9% 0.9615 0.9434 0.9259 0.9174 0.9091 0.8696 1.8861 1.8334 1.7833 1.7591 1.7355 1.7125 1.6901 1.6257 2.7751 2.673 2.5771 2.5313 2.4869 2.4437 2.4018 2.2832 3.6299 3.4651 3.3121 3.2397 3.1699 3.1024 3.0373 2.855 4.4518 4.2124 3.9927 3.8897 3.7908 3.6959 3.6048 3.3522 10% 11% 12% 15% 0.9009 0.8929 FILE Pale - 5 HOME * Cus Capy Clipboard 1485-Present Value Assements - Excel INSERT PAGE LAYOUT FORMULAS DATA REVIEW VEW Tahoma -10.5 A A Wrap Text General Normal Bad BIU Format Painter === Merge & Center $% Conditional Formal Formatting Isble- Check Cell Good Explanatory... Input Neutral Linked Cell Calculation AUROSUM Note Imert Delete Format FI- Clear Surt & Find & Fiber Select Font 812 Alignment Xfx 1. Jim is considering an investment that generates cash flows of $3,000 in year 1, $2,000 in year 2 and $1,000 in year 3, as shown in the cash flow sketch above. Number Styles Cells Editing ? Sign in A C D F F 6 1 K L M N 0 Q R S T U V W x Y 7 M AB AC AD 40 0 1 2 3 41 PV-777 60 60 60 42 1000 43 Disc't Rele-8% 44 45 4. Rob is considering the purchase of a bond. The bond has a $1,000 face value and a contractual interest rate of 6%. How much should Rob pay for this bond, assuming that he demands a rate of return of 8%? Hint: discount the interest annuity at 8%; discount the lump sum at 8%; add the two amounts together. 46 Round your answer to the nearest whole dolar. 47 Your answer: $ Result 0 48 49 50 51 52 0 1 2 3 53 PV-??? 60 60 54 60 1000 55 Disc't Rate % 56 A Bond Problem 57 58 5. Dave is considering the purchase of a bond. The bond has a $1,000 face value and a contractual interest rate of 6%. How much should Dave pay for this bond, assuming that the market rate of return is 496? 50 Round your answer to the nearest whole dollar. 50 Your answer: $ Result 0 61 62 03 64 65 0 1 2 5000 5000 5000 06 67 68 09 Result 0 PV-??? Disc't Rate-10% 6. Tanya is considering an investment that generates cash flows of $5,000 in year 1, $5,000 in year 2 and $5,000 in year 3, as shown in the cash flow sketch above. How much should Tanya pay for this series of cash flows today, assuming that she demands a rate of return of 10%? Round your answer to the nearest whole dollar. Your answer: $ 10 71 72 73 0 1 74 PV-??? 10000 2 10000 10000 75 Disc't Rate-10% 16 77 7. Tim is considering an Investment that generates cash flows of $10,000 in year 1, $10,000 in year 2 and $10,000 in year 3, as shown in the cash flow sketch above. How much should Tim pay for this series of cash flows today, assuming that he demands a rate of return of 10%? Round your answer to the nearest whole dolar Result 2. IRR 3. TV and PV 4. PV Annuity-LumpSum-Bonds EDIT + 100%