## Description

Please red 3rd chapter and answer the problems at the end. there are only 10 problems: Pls do it word or handwritten and In EXCEL also . Thanks

## Explanation & Answer

See attached

Q3.1

𝐶𝐹1

𝐶𝐹2

𝐶𝐹𝑛

PV = (1+𝑟)1 + (1+𝑟)2 …..+ (1+𝑟)𝑛

PV= (

1000

1+0.05) 1

+(

0

3000

+

1+0.05) 2 ( 1+0.05) 3

= $3543.89

Q3.2

FV (cashflows at end of period) = CF1*(1+r) n-1 + CF2*(1+r)n-2 +… CFn

FV= 1000( 1+0.05)2 + 0 + 3000 = $4102.5

Q3.3

𝐶𝐹1

𝐶𝐹2

𝐶𝐹𝑛

PV = = (1+𝑟)1 + (1+𝑟)2 …..+ (1+𝑟)𝑛

6000

6000

6000

6000

6000

PV= (1+0.1) 1 + (1+0.1)2 + (1+0.1) 3 + (1+0.1) 4 + (1+0.1)5 = $22744.72

Q3.4

𝐶𝐹1

𝐶𝐹2

𝐶𝐹𝑛

PV = = (1+𝑟)1 + (1+𝑟)2 …..+ (1+𝑟)𝑛

PV= (

0

1+0.1) 1

+(

0

10000

+

1+0.1) 2 ( 1+0.1) 3

+(

10000

1+0.1) 4

= $14343.28

Q3.5

FV (Cash flows at end of period) = CF1*(1+r) n-1 + CF2*(1+r)n-2 +… CFn

FV= 1000( 1+0.05)2 + 1000( 1+0.05)1 + 1000 = $3152.5

Q3.6

𝐶𝐹1

𝐶𝐹2

𝐶𝐹𝑛

PV = (1+𝑟)1 + (1+𝑟)2 …..+ (1+𝑟)𝑛

1000

1000

1000

1000

PV= (1+0.05) 1 + (1+0.05) 2+ (1+0.05)3 + (1+0.05)4 = $3545.95

Q3...