(a) what is the present value of $30,700 due 12 periods from now, discounted at 12%? course hero

What is the present value of 30700 discounted at 12%?

(a) What is the present value of $30,700 due 12 periods from now, discounted at 12%? (Round answer to 2 decimal places, e.g. 25.25.) enter the present value of the investment discounted at 12% rounded to 2 decimal; Question: (a) What is the present value of $30,700 due 12 periods from now, discounted at 12%? (Round answer to 2 decimal places, e ...

What is the present value of a sum of money?

Present value of $30,700 to be received in 12 years discounted at 10% is therefore $9,781.94 ($30,700 x 0.31863).(b)i = 5% Discount rate from Table 4 is 3.54595 (4 periods at 5%). Present value of 4 payments of $30,700 each discounted at 5% is …

What is a present value calculator?

(a) What is the present value of $30,700 due 12 periods from now, discounted at 12%? (Round answer to 2 decimal places, es.25.25.) Present value $ (b) What is the present value of $30,700 to be received at the end of each of 5 periods, discounted at 10%? (Round answer to 2 decimal places, eg. 25.25.) Present value $

How many explanations are there in the ACC-final study guide?

In the table below, we have calculated the future value (FV) of $30,700 over 12 years for expected rates of return from 2% to 30%. The table below shows the present value (PV) of $30,700 in 12 years for interest rates from 2% to 30%. As you will see, the future value of $30,700 over 12 years can range from $38,935.02 to $715,251.21.

How do you find the present value of a discounted payback period?

61 second clip suggested12:42Discounted payback period - Example 1 - YouTubeYouTubeStart of suggested clipEnd of suggested clipNow we know that the payback period can be found out using the formula. Years before full recovery.MoreNow we know that the payback period can be found out using the formula. Years before full recovery. Plus unrecovered amount at the start of the period divided by cash flow during the period.

How do you calculate a discounted period?

DPP = y + abs(n) / p, y = the period preceding the period in which the cumulative cash flow turns positive, p = discounted value of the cash flow of the period in which the cumulative cash flow is => 0, abs(n) = absolute value of the cumulative discounted cash flow in period y.

How do you calculate discounted NPV?

It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time. As the name suggests, net present value is nothing but net off of the present value of cash inflows and outflows by discounting the flows at a specified rate.May 11, 2021

How much would the reduction in downtime have to be worth in order for the project to be acceptable?

The reduction in downtime would have to have a present value of at least $5,621 in order for the project to be acceptable.

How do you calculate discount period in DCF?

In a DCF without mid-year convention, we would use discount period numbers of 1 for the first year, 2 for the second year, 3 for the third year, and so on. With mid-year convention, we would instead use 0.5 for the first year, 1.5 for the second year, 2.5 for the third year, and so on.

How do you compute present value?

The present value formula is PV=FV/(1+i)n, where you divide the future value FV by a factor of 1 + i for each period between present and future dates. Input these numbers in the present value calculator for the PV calculation: The future value sum FV. Number of time periods (years) t, which is n in the formula.

How do you find the present value of a discount?

NPV = F / [ (1 + r)^n ] where, PV = Present Value, F = Future payment (cash flow), r = Discount rate, n = the number of periods in the future).

How do you calculate discounted cash flow?

Here is the DCF formula:CF = Cash Flow in the Period.r = the interest rate or discount rate.n = the period number.If you pay less than the DCF value, your rate of return will be higher than the discount rate.If you pay more than the DCF value, your rate of return will be lower than the discount.More items...

What is discounted cash flow and net present value?

The discounted cash flow analysis helps you determine how much projected cash flows are worth in today's time. The Net Present Value tells you the net return on your investment, after accounting for startup costs. Both calculations examine your small business's cash flows, or how much money is taken in and spent.Oct 8, 2018

What does IRR mean in statistics?

internal rate of returnThe internal rate of return (IRR) is the annual rate of growth that an investment is expected to generate. IRR is calculated using the same concept as net present value (NPV), except it sets the NPV equal to zero.

When a project has a positive net present value it has a profitability index?

In general, a positive NPV will correspond with a profitability index that is greater than one. A negative NPV will correspond with a profitability index that is below one. For example, a project that costs $1 million and has a present value of future cash flows of $1.2 million has a PI of 1.2.

What is the cash payback technique?

Simply put, the cash payback technique involves dividing the total cost of the upgrade by the amount of money that the upgrade will make every year. This gives us the cash payback period, or the amount of time we have to wait to see the item pay for itself.Dec 15, 2021