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View the video Calculate the Present Value for Multiple Cash Flows at the link below:https://www.youtube.com/embed/HxtM34msWGI  1. Provide a practical example from your own personal financial management of why an understanding ofthe present value of future cash flows would be important.2. You expect to receive $10,800 one year from now, $17,400 two years from now, nothing at the end of the third year, and $24,000 four years from now. If you discount all your cash flows at 7%, then with annualcompounding, what are these future cash amounts worth to you in total today? Check you answers using Excel. Submit both your hand-written calculations and your Excel file.  

Joshua wants to create a fund today that will provide a 4% guaranteed compounded annual rate. He wants to withdraw $15,000 one year from now and $27,000 two years from now, after which the fund will be depleted. How much must he invest today to achieve this goal?

Portland Brewery Inc. recently issued 30-year $1,000 face value, 12% annual coupon bonds. The market discount rate for this bond is only 7%. What is the current price of this bond?

You are offered a business partnership that guarantees you cash returns of $150,000 one year from now,nothing at the end of year 2, and $350,000 at the end of year 3. After year 3, the partnership will bedissolved, and there will be no more expected returns on your investment. If you analyze this planexpecting 7% compounded annually, what is this potential deal worth to you today?

You agree to repay a loan over five years with the following stream of cash payments: $1,000; $1,100; $1,250; $1,280; and $1,300. If you wish to discount these payments to their present value today using 4%, why can you not use one annuity calculation, as seen in previous chapters?

Steve purchases preferred stock in Berklee Corporation, with each share paying a $2.50 dividend. This dividend will remain constant. If the public’s required rate of return for Berklee stock is 8%, at what price should this company’s stock sell?

What is the future value of annual payments of $3,000 for 15 years at 2 percent?

You agree to finance your new SUV with an auto loan of $38,000. This loan will be repaid over three years with monthly payments (and compounding) at a 4% annual interest rate (0.33% per month). What will your monthly loan payment be? (HINT: You will need to solve for the PYMT in the present value of an annuity formula)

8. The relationship between time and money depends on:

3. The role of a broker is: