Financial Valuation

(7.1). Manager Paul Smith believes an investment project go away cast the following yearly hard bullion fluxs with the associated proba Calculate the ideal deviation (SD) and Coefficient of variation (CV) of the cash flows. funds Flows(S) $ $ $ $ $ $ $ $ 10,000.00 13,000.00 16,000.00 19,000.00 22,000.00 25,000.00 28,000.00 19,000.00 Probability of natural event (P) 0.05 0.1 0.2 0.3 0.2 0.1 0.05 1 Sum add up Total (P) Standard Deviation (SD) Coefficient of Variation (CV) $ 4,347.41 23% The CV of 23% is the relative degree of risk. 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 $$5,000.00 $10,000.00 $15,000.00 $20,000.00 (8.1). What is the next shelter of $1,000 invested today if you earn 7 part yearly interest group for five days? Amount Interest socio-economic classs rule #1: use Formula $ 1,000.00 7.00% 5 Interest Deposited constant of gravitational attraction 1070 1000 1000 1000 FV 1070.0 1144.9 1225.0 1310.8 1402.6 socio-economic class 1 division 2 year 3 Year 4 Year 5 Future take account (FV) = mode #2: use Excel Function PV = Rate = Nper = FV =(rate,nper,pv) Future note honour = $ 7.00% 7.00% 7.00% 7.00% 7.00% 1402.6 1,000.00 7.00% 5 ($1,402.55) $1,402.55 (8.7). What is the manifest value of $20,000 ito be received decennium years from now using a 12 percent annual discount rate? FV k n PV PV=FV(1/(1+k)^n) rule #1: Using Formula $ 20,000.

00 0.12 10 Solution and definition for Problem ( fork over Value (PV): This is the starting a the number of periods until that future period. purpose the PV will enable the investor t Using the for mula method , we pile subs 6439.46 Subst! ituting the value into the formula Substituting the values into the formula Method #2: Using Excel Function PV = pv(rate,nper,fv) Present Value (PV) = ($6,439.46) $6,439.46 Using the Excel function method, we wi amount to decrease at a decreasing rate into a positive PV. (please Since we have a future cash flow amou cash cash flow is definite and fixed the d $6439.46 is the amount/present value t rate we can conclude that...If you deficiency to notice a full essay, order it on our website: BestEssayCheap.com

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