Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fill in the blanks with Financial Management terms / formulas. or if it gives you the choice, circle the correct one. (7.3) The basic PV

image text in transcribed

Fill in the blanks with Financial Management terms / formulas. or if it gives you the choice, circle the correct one.

(7.3) The basic PV equation as follows: PV = Or, we can rearrange the basic PV equation so the PV is determined by multiplying the future value (FV) times the _ of the FV interest factor: PV = . The term [1/(1+r)') is called the present value interest factor and is abbreviated The PVIF is also called the ___, and calculating the present value of a future cash flow to determine its worth today is commonly called _valuation. (7.4) A FV with multiple cash flows can be computed by finding the of each deposit and then summing the separate cash flows can be calculated by separately computing the flow and then summing the separate L. A PV with multiple of each cash (7.5) An annuity is a series of cash flows that occur at of each period for some _number of periods. When the payments occur at the end of the time period, the annuity is referred to as an __annuity form. If payments are at the beginning of the time period, we call the annuity an (7.6) The PV of an annuity formula is: Cx{ parentheses is sometimes called }, where the term in _and abbreviated }, where the term in (7.7) The FV of an annuity formula is: FV = Cx{ parentheses is sometimes called (7.8) A perpetuity is a an annuity with the The PV of a perpetuity formula is: PV = C, and written as: C = _stream of cash flows continues __The formula can also be solved for _. It can also be solved for r:r = (7.3) The basic PV equation as follows: PV = Or, we can rearrange the basic PV equation so the PV is determined by multiplying the future value (FV) times the _ of the FV interest factor: PV = . The term [1/(1+r)') is called the present value interest factor and is abbreviated The PVIF is also called the ___, and calculating the present value of a future cash flow to determine its worth today is commonly called _valuation. (7.4) A FV with multiple cash flows can be computed by finding the of each deposit and then summing the separate cash flows can be calculated by separately computing the flow and then summing the separate L. A PV with multiple of each cash (7.5) An annuity is a series of cash flows that occur at of each period for some _number of periods. When the payments occur at the end of the time period, the annuity is referred to as an __annuity form. If payments are at the beginning of the time period, we call the annuity an (7.6) The PV of an annuity formula is: Cx{ parentheses is sometimes called }, where the term in _and abbreviated }, where the term in (7.7) The FV of an annuity formula is: FV = Cx{ parentheses is sometimes called (7.8) A perpetuity is a an annuity with the The PV of a perpetuity formula is: PV = C, and written as: C = _stream of cash flows continues __The formula can also be solved for _. It can also be solved for r:r =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Theory

Authors: Jean-Pierre Danthine, John B. Donaldson

3rd Edition

0123865492, 9780123865496

More Books

Students also viewed these Finance questions