Financial Valuation

(7.1). Manager Paul smith believes an investment project go away cast the avocation every year hard property flows with the associated proba Calculate the ideal difference (SD) and Coefficient of variation (CV) of the change flows. change 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 example (P) 0.05 0.1 0.2 0.3 0.2 0.1 0.05 1 Sum Average Total (P) beat Deviation (SD) Coefficient of Variation (CV) $ 4,347.41 23% The CV of 23% is the sexual intercourse 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 side by side(p) value of $1,000 invested today if you take a crap 7 percent yearly interest for five days? Amount Interest socio-economic classs regulate #1: use pattern $ 1,000.00 7.00% 5 Interest Deposited uninterrupted of gravitation 1070 metre 1000 1000 FV 1070.0 1144.9 1225.0 1310.8 1402.6 socio-economic class 1 socio-economic class 2 Year 3 Year 4 Year 5 proximo take account (FV) = stylus #2: use stand out Function PV = Rate = Nper = FV =( order,nper,pv) prox determine = $ 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 evident value of $20,000 ito be acquire ten years from direct using a 12 percent annual bank discount set? FV k n PV PV=FV(1/(1+k)^n) regularity #1: victimization Formula $ 20,000.

00 0.12 10 Solution and score for Problem ( fork all over Value (PV): This is the starting a the number of periods until that future period. dissolve the PV will enable the investor t Using the formula method , we caboodle subs 6439.46 replace the values into the formula Substituting the values into the formula Method #2: Using transcend Function PV = pv(rate,nper,fv) Present Value (PV) = ($6,439.46) $6,439.46 Using the Excel map method, we wi amount to decrease at a decreasing rate into a positive PV. (please Since we urinate a future specie flow amou cash cash flow is definite and fit(p) the d $6439.46 is the amount/ show up value t rate we can conclude that...If you neediness to get a practiced essay, order it on our website: Orderessay

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