Looking for help with an assignment? Connect with an assignment Expert Now!

Get Started

Present and Future Value of Cash Flow Discussion

Present and Future Value of Cash Flow Discussion.

Week 3 – Discussion Forum

No unread replies.No replies.

Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

 Present and Future Value of Cash Flow [WLO: 1] [CLO: 1]

The projected amount and timing of cash flows received from an investment impacts the value of that investment. The longer it takes to receive a payment, the less valuable it is to the investor today. The key to comparing different investments is to determine the value of each investment in today’s terms. Every investment can be valued in today’s terms using time value of money mathematics. For this discussion forum, you will practice calculating the value of cash flows using the principles of time value of money mathematics.

Time value of money concepts and math form the cornerstone of finance. This discussion is an opportunity for you to practice using these formulas and to progress in your understanding of this important topic. You will use these concepts later in this course, in other finance courses, and throughout a career in finance. Like many concepts, each time you work with time value of money problems you may develop a slightly different, deeper, and more thorough understanding of the theory. Some of you may be quite comfortable using these formulas, while others may need to spend extra time focusing on the mathematics. However, all of you can progress in your abilities through this discussion activity.

Prepare:

Prior to beginning work on this discussion forum,

Calculate:

  • Calculate a time value of money problem, according to first letter of your last name, and the equation provided for each problem. The equations listed are in the textbook throughout Chapter 4 using the notations 4.XX for each formula, and in the Chapter 4 Summary.

Last NameProblemEquationA through BCompute the future value of $2,000, at an interest rate of 5%, compounded annually, in 6 years.

Equation 4.11:

FVn=PV0×(1+r)nFVn=PV0×(1+r)n

C through DCompute the future value of $1,000, at an interest rate of 3%, compounded annually, in 4 years.

Equation 4.11

FVn=PV0×(1+r)nFVn=PV0×(1+r)n

E through FCompute the present value of $5,000 received in 6 years, using a discount rate of 2%.

Equation 4.14:

PV0=FVn×(1+r)−nPV0=FVn×(1+r)−n

also expressed as:

G through ICompute the present value of $10,000 received in 4 years, using a discount rate of 7%.

Equation 4.14:

PV0=FVn×(1+r)−nPV0=FVn×(1+r)−n

also expressed as:

PV0=FVn(1+r)nPV0=FVn(1+r)n

J through KCompute the future value of annual payments of $100, paid for 5 years, with an interest rate of 8% (compounded).

Equation 4.17:

FVn=CF1×(1+r)N−1+CF2×(1+r)N−2+…CFnFVn=CF1×(1+r)N−1+CF2×(1+r)N−2+…CFn

L through MCompute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of 3% (compounded).

Equation 4.17:

FVn=CF1×(1+r)N−1+CF2×(1+r)N−2+…CFnFVn=CF1×(1+r)N−1+CF2×(1+r)N−2+…CFn

N through PCompute the present value of annual cash payments of $200 per year, for 4 years, using a discount rate of 5%.

Equation 4.16:

PV0=CF1(1+r)1+CF2(1+r)2+…CFn(1+r)nPV0=CF1(1+r)1+CF2(1+r)2+…CFn(1+r)n

Q through SCompute the present value of annual cash payments of $600 per year, for 3 years, using a discount rate of 8%.

Equation 4.16:

PV0=CF1(1+r)1+CF2(1+r)2+…CFn(1+r)nPV0=CF1(1+r)1+CF2(1+r)2+…CFn(1+r)n

T through VCompute the present value of a $400 cash payment received in perpetuity, using a discount rate of 10%.

Equation 4.19:

PV0=CFrPV0=CFr

W through ZCompute the present value of a $750 cash payment received in perpetuity, using a discount rate of 6%.

Equation 4.19:

PV0=CFrPV0=CFr

Need help with your calculations? Check out the videos included in this resource: Week 3 Discussion Help (Links to an external site.).

Write:

  • Write out each step you used to solve the problem you were assigned, and provide the solution to the problem as well.
    • Present your final solution as a decimal approximation carried out to the second decimal point (e.g., $000.00).
  • Explain the meaning of the problem and your solution in your own words.
  • Explain your answers to the following questions:
    • If the rate in the problem was higher, would the solution be higher or lower?
    • If the time period in the problem was shorter, would the solution be higher or lower?
  • Describe an element of this problem that was challenging to you.
  • Ask at least one question about time value of money mathematics.

Present and Future Value of Cash Flow Discussion

Get a Quote

Approximately 250 words
Total price (USD) $: 10.99

ORDER NOW
Do My Paper

Reviews from Clients on This Assignment

Catey, AU

Writer was timely and proficient. I had to ask for a revision, but I got it back quickly with no other issues

McCoy, CA

The writing was prepared and submitted prior to the completed request date

Theodore, U.S.A

Wow! I got an A on my last paper completed by writer 152, I will use your services again

Madeline, U.K

I have been using this website for a year now and so far, I have never had an issue on my assignments. Thank you

James, AU

I ordered 3 papers and got them on time. I will refer again. Thank you

Kate, CA

Followed all the directions provided and never had to contact me regarding the assignment

With a lot of experience, we can help you with your essay

 

With over 20 years of experience in the custom essay writing industry, we have helped thousands of students through their studies with quality papers and friendly, knowledgeable service. Each of our paper writers goes through a rigorous selection process to make sure they can deliver the consistent professional work required.

Our essay service offers papers on any subject and at all academic levels: high school, college, and university (including Master’s and Ph.D. dissertations). From case studies, research papers and assignments, to term papers, M/As, and doctorates, we have professional writers who can produce the work you need on the deadline you require.

Simply ask us to write my essay, and we will provide you with a high-quality document.

Every paper is created from fresh with the needs of the customer in mind and adheres to a strict quality assurance system, ensuring that our customers receive effective outcomes. Our essay writing service’s paper writer managers work around the clock to ensure that each essay assignment is unique and of excellent quality.

What Am I Getting When I Hire a Professional Essay Writer?

Perhaps you have a part-time work and family obligations, or perhaps you have a stack of assignments with tight deadlines. That’s why we’ve created an essay writing service to help you out! We assist you in obtaining essay assistance from a professional essay writer, and we never miss deadlines. You have complete control over the deadline when you ask one of our experts to write my paper for me. You can set it for as long as 2 weeks or as short as 6 hours. If you need expert essay writing aid because you don’t grasp all the criteria of a piece of work, or if you have a paper due tomorrow and don’t feel like pulling an all-nighter, we are the best solution.

Our customers have the option of selecting among hundreds of essay writers who are experts in a variety of fields. They have a lot of industry experience, and some of them even have PhDs. We are one of the most cost-effective and dependable paper writing services, with a quality assurance team that ensures all essays are up to par.

Do you have a tight deadline?

Student life entails managing a variety of duties, including academic pursuits, part-time work, and family and social obligations, all of which compete for time and attention. This can put you under a lot of stress at the conclusion of the semester.

ProEssayTutor was created to assist students in just these situations. We’ll set to work pairing you with essay writers who can complete your project with speed, precision, and quality after you submit a write my essay for me request. As a result, we have a near-100 percent client satisfaction record.
We keep our essay writing services as low as possible, starting at $11 per page, with fast delivery and an online chat for feedback.

Because our writers follow a strict quality assurance methodology, each of our papers is unique. This implies you’ll always get a completely unique paper from an academic writer who has not just a higher education degree but also a lot of expertise.

Every student has been in a tight place at one point or another, with looming deadlines causing a great deal of anxiety. Consult our paper writing service even if your deadline is only 12 hours away. We can get an expert on your assignment and assist you in your academic career if you message us in the chat!

Choose the Most Appropriate Paper Writer for You

Our college essay writing service provides our loyal customers with an easy-to-use and competent catalog of essay writers from which to choose. We understand that this may be your first time trying to pay someone to write my paper, so we want to make the process as straightforward and pleasurable as possible, free of the concerns that you could experience on other websites. You may look at the customer satisfaction rate, completed orders, bios, and reviews of hundreds of writers who specialize in a variety of subjects. This material provides you with all you need to choose the best academic writer for your project.

Do you require any other information? You may always talk to authors personally and ask them any questions you want to be sure they can manage your purchase properly. Alternatively, if you have three or four good possibilities and are unsure which to choose, you may contact our customer service staff, who will assign you to the most appropriate essay writer. Because of all of these characteristics, our essay writing service is a popular choice among students of all academic levels.

Write My Essay with a User-Friendly Service

We work hard to make sure that the experience of our clients is always a positive one. ProEssayTutor paper writing service is easy-to-use, with access to customer support 24/7. We can answer your questions about writers, deadlines, types of academic papers, and the security of your personal information, which we take extremely seriously.
We offer an ProEssayTutor reviews page in-app if you want to see what other clients have to say about our essay service. Examine the feedback offered by our consumers, which outline their order experience and the essay writing service’s proficiency. We urge you to provide customer feedback; we value your input since it helps us improve our service for our long-term clients.
Check out our testimonials to get a sense of what to expect from our services.

What if My Paper Isn’t Finished to My Complete Satisfaction?

It’s fine if you received your essay and weren’t totally happy. If you have a complicated project, there will be numerous requirements that your paper writer must follow, and while we try for 100 percent success on the first delivery, some changes may be necessary. Customers who ask an expert to write a paper for me are entitled to an infinite number of free revisions and rewrites for up to 30 days after the paper is completed and delivered, according to our policy.

Simply contact your writer and express your concerns; they will gladly make any necessary revisions, which will then be reviewed by a member of our quality assurance team, who will ensure that the problem has been effectively fixed.

We offer a money-back guarantee if you are absolutely dissatisfied with our paper writing service, even if it is within the first 30 days after order completion. In any event, you’re covered because our essay writing service attempts to provide the best for all of our students, regardless of the size or complexity of the task.

Place Order