Determining the present value-annual value

Reference no: EM13826139

Problem:

The estimated cash flow of Project XP-05/3 is given below:

End of year	0	1	2	3	4
Cashflow, $	-X	Y	Y+$400,000	Y+$800,000	Y+$1.200,000

The interest rate is v %.

Determine:

the present value of the cash flow, if X = $2,000,000, Y = $1,000,000 and v = 8 % monthly compounding
the equivalent annual value of the cash flow, if X = $2,000,000, Y = $500,000 and v = 12 % yearly compounding
the value of Y, if the internal rate of return of the cash flow is 10% and X = $3,000,000
the external rate of return of the cash flow, if X = $2,500,000, Y = $500,000 and the re-investment rate is 10 % yearly compounding
the internal rate of return of the cash flow, if X = $4,600,000 and Y = $1,000,000

Additional Information:

This question is basically belongs to the Finance as well as it explains about computation of present value, annual value, internal and external rate of return for a project.

Reference no: EM13826139

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