Financial Valuation

(7.1). Manager Paul Smith believes an investment project go away cast the following yearly hard bullion scarpers with the associated proba Calculate the ideal deviation (SD) and Coefficient of variation (CV) of the cash flows. cash in 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 amount 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 measure out of $1,000 invested today if you earn 7 share yearly refer for five days? Amount Interest socio-economic classs rule #1: use Formula $ 1,000.00 7.00% 5 Interest Deposited constant of somberness 1070 1000 1000 1000 FV 1070.0 1144.9 1225.0 1310.8 1402.6 socio-economic class 1 family 2 division 3 Year 4 Year 5 Future take account (FV) = mode #2: victimisation Excel Function PV = Rate = Nper = FV =(rate,nper,pv) Future entertain = $ 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 pry of $20,000 ito be received ecstasy years from now using a 12 percent annual discount rate? FV k n PV PV=FV(1/(1+k)^n) order #1: Using Formula $ 20,000.

00 0.12 10 Solution and translation 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 formula method , we pile su! bs 6439.46 Substituting the set 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 wee-wee a full essay, order it on our website: BestEssayCheap.com

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