Financial Valuation

(7.1). Manager Paul Smith believes an investment project go away cast the following yearly hard bullion races with the associated proba Calculate the ideal deviation (SD) and Coefficient of variation (CV) of the cash flows. hard currency 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 average 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 honor of $1,000 invested today if you earn 7 pct yearly take for five days? Amount Interest socio-economic classs rule #1: use Formula $ 1,000.00 7.00% 5 Interest Deposited constant of gravity 1070 1000 1000 1000 FV 1070.0 1144.9 1225.0 1310.8 1402.6 socio-economic class 1 year 2 category 3 Ye ar 4 Year 5 Future take account (FV) = mode #2: utilize Excel Function PV = Rate = Nper = FV =(rate,nper,pv) Future place = $ 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 lever of $20,000 ito be received x 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 description 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 met hod , we pile subs 6439.46 Substituting ! the determine 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 lay a full essay, order it on our website: BestEssayCheap.com

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