Assignment: Time Value Of Money
When the Genesis Energy and Sensible Essential teams held their weekly meeting, the time value of money and its applicability yielded an extremely stimulating discussion. However, most of the team members from Genesis Energy were very perplexed. Sensible Essential Consulting decided the most expedient way to demonstrate how interest rates as well as time impact the value of money was to use examples. You have been asked to prepare a report analyzing your findings of the three example calculations listed below.
In this assignment, you will do the following:
1. Calculate the future value of $100,000 ten years from now based on the following annual interest rates:
1. 2%
2. 5%
3. 8%
4. 10%
2. Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows:
1. Year 1 = $100,000
2. Year 2 = $150,000
3. Year 3 = $200,000
4. Year 4 = $200,000
5. Year 5 = $150,000
6. Years 6-10 = $100,000
3. Calculate the present value of the cash flow stream in problem 2 with the following interest rates:
1. Year 1 = 8%
2. Year 2 = 6%
3. Year 3 = 10%
4. Year 4 = 4%
5. Year 5 = 6%
6. Years 6-10 = 4%.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.