; 868978-Week_2Bfour_2BDCF_2Bhomework_2Bproblems
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# 868978-Week_2Bfour_2BDCF_2Bhomework_2Bproblems

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```									                     Discounted Cash Flow Homework Problems

midnight the last day of the week assigned.

1. Calculate the future value of 1,535 invested today for 8 years at 6 percent.
(5 points)

2. What is the total present value of the following cash stream, discounted at 8
percent? (5 points)

Year 1   2   3   4   5
Amt 400 750 945 145 78

3. If you invested \$2,000 per year into an IRA for 30 years and received 6 percent return
each year, what would the account balance be in 30 years? (8 points)

4. A friend gives you a proposition. If you give him 1,500 dollars today, he will
guarantee your receive 12 percent a year for the next 5 years. How much money will you
receive from him at the end of 5 years? (8 points)

cost of the system is \$150,000 and you expect to save over \$40,000 per year in reduced