A) XYZ Inc has a 5 year project named as Project A and cash flows of 5 year are given.

Answer Year Project A Cash flows Discount Rate

1 6000 5%
2 5000
3 4000
4 2000
5 1000
TOTAL PV

B) A project with a five-year lifespan has the following cash flows. If the applicable discount rate is 6%, calculate
Answer Year Project Cash flows Rate
1 400 6%
2 500
3 300
4 600
5 200
Total FV

c) If an ordinary annuity pays $50,000 per year for 15 years and the interes
Answer ₹ 455,395.70

d) Your client wishes to start saving for retirement at the age of 40. Y
Answer ₹ 666,669.35

e) Smith bought a bond that will continue to pay him coupon payments forever. Each year, Smith receives $100 fro
Answer PVP= 1250

f) Using the provided information, calculate the present value of a growing annuity: the time period is 20 years,
Answer YEAR CASH FLOWS
1 9000
2 9180
3 9363.6
4 9550.872
5 9741.88944
6 9936.7272288
7 10135.461773376
8 10338.1710088435
9 10544.9344290204
10 10755.8331176008
11 10970.9497799528
12 11190.3687755519
13 11414.1761510629
14 11642.4596740842
15 11875.3088675659
16 12112.8150449172
17 12355.0713458155
18 12602.1727727318
19 12854.2162281865
20 13111.3005527502
g) A trade company expects to make $120,000 every year for all time. The business's cost of capital is 13 perc
Answer CASH FLOW 120000
CASH FLOW 1 123600
INTEREST RATE 0.13
GROWTH RATE 0.03
PRESENT VALUE OF PERPETUITY 1236000
flows of 5 year are given. Calculate present value of all cash flows if relevant discount rate is 5%.
Discount Rate Present Value(pv)
5714.2857
4535.1474
3455.3504
1645.4049
783.52617
16133.715

iscount rate is 6%, calculate the future value of each cash flow.
Future Value
₹ 504.99
₹ 595.51
₹ 337.08
₹ 636.00
₹ 200.00
₹ 2,273.58

for 15 years and the interest rate is 7%, what would be the present value?

etirement at the age of 40. You suggest to the customer investing Rs. 5,000 annually in the stock market. You predict that the market wi

ear, Smith receives $100 from this bond. How much should Smith spend on this bond if the discount rate is 8%?

: the time period is 20 years, the cash flow growth rate is 2%, the present cash flows are 9000, and the required rate of return is 5%.
INTIAL INVESTMENT 9000
INTEREST RATE 5%
GROWTH RATE 2%
TIME PERIOD 20

PRESENT VALUE OF GROWING ANNUITY ₹ 131,988.62

ess's cost of capital is 13 percent and cash flows increase on a proportionate basis of 3%.Calculate the value.
. You predict that the market will return an average of 12% annually. Consider that the investment will be made at the year's end. When

required rate of return is 5%.

de at the year's end. When she turns 65, how much money will she have?