Finance 305, FALL 2012 HW No.

1 Page 1

Single Cash Flow

Inputs Single Cash Flow Discount Rate / Period Number of Periods

Present Value

Single Cash Flow - Present Value

$ 1,000.00 6.0% 5 20 6 5
$1,400.00 $1,200.00 $1,000.00 $800.00 $600.00 $400.00 $200.00 $0 1 2 Period 3 4 5

Cash Flows
Present Value

Preseent Value using a Time Line Period Cash Flows Present Value

5 $ 1,000.00 $ 747.26

Present Value using the Formula Present Value $ 747.26 Present Value using the PV Function Present Value $ 747.26

Finance 305, FALL 2012 HW No. 1 Page 2

Single Cash Flow

Inputs Single Cash Flow Discount Rate / Period Number of Periods

Future Value
$ 747.26 6.0% 5 14 6 5

Single Cash Flow - Future Value

$1,400.00 $1,200.00 $1,000.00 $800.00 $600.00 $400.00 $200.00 $-

Cash Flows Future Value

2
Period

Future Value using a Time Line Period 0 Cash Flows $ 747.26 Future Value $ 1,000.00 Future Value using the Formula Future Value $ 1,000.00 Future Value using the PV Function Future Value $ 1,000.00

Finance 305, FALL 2012 HW No. 1 Page 3

Single Cash Flow

Inputs Single Cash Flow Discount Rate / Period Number of Periods

Present Value
$ 1,673.48 7.8% 4
$1,800.00 $1,600.00 $1,400.00 $1,200.00 $1,000.00 $800.00 $600.00 $400.00 $200.00 $1

Single Cash Flow - Present Value

7.8 4

Cash Flows Present Value

3 Period

Preseent Value using a Time Line Period Cash Flows Present Value

4 $ 1,673.48 $ 1,239.21

Present Value using the Formula Present Value $ 1,239.21 Present Value using the PV Function Present Value $ 1,239.21

Finance 305, FALL 2012 HW No. 1 Page 4

Single Cash Flow

Inputs Single Cash Flow Discount Rate / Period Number of Periods

Future Value
$ 932.47 3.9% 4

Single Cash Flow - Future Value

$1,200.00

$1,000.00

3.9 4

$800.00 $600.00 $400.00 $200.00 $1 2 3 Period 4 5 Cash Flows Future Value

Future Value using a Time Line Period 0 Cash Flows $ 932.47 Future Value $ 1,086.67 Future Value using the Formula Future Value $ 1,086.67 Future Value using the PV Function Future Value $1,086.67