Annual revenue-what is the present value of the savings

Assignment Help Financial Management
Reference no: EM131015950

Your company will generate $63,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.50 percent, what is the present value of the savings?

Reference no: EM131015950

Questions Cloud

Markets efficiency is affected by the number of transactions : Do you think a market's efficiency is affected by the number of transactions that take place, the amount of time it takes to complete the transaction and the number of buyers and sellers present? How do these questions relate to the Primary and Secon..
What is the yield to maturity for bonds : Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 19-year to maturity, carry a 13.29 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that t..
Combinations of discount rates and times : Compute the present value of a $1,000 cash flow for the following combinations of discount rates and times:
What is the companys return on equity : Net profit magin = .053%. Equity Multiplier = 2.48. Total assets= $99 million. Sales=$159 million. What is the companys return on equity in % form.
Annual revenue-what is the present value of the savings : Your company will generate $63,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.50 percent, what is the present value of the savings?
Is this growth rate sustainable : In the TV episode Tim mentions that Grease Monkey Wipes have been on the market for a few months and they have sold 7,600 units with gross revenue is $7,400. In the update video Erin mentions that Grease Monkey Wipe has sold over 200,000 units and th..
If the yields on treasury bonds rise significantly : If the yields on treasury bonds rise significantly but there is no change in the outlook for economic growth and profits (and no change in investor risk aversion level or required risk premium) the stock market should
Expect the premium for bearing risk fall : Assume that you expect the premium for bearing risk fall in 2010. Explain whether that would result in a change in the discount rate for security investments (and other investments) in 2010 from the current level and what impact that might have on th..
Necessarily cause companys ROE to increase : Which of the following will necessarily cause a company’s ROE to increase?

Reviews

Write a Review

Financial Management Questions & Answers

  Get a price that would pay off the balance of his loan

Hank purchased a $23,700 car three years ago using a 10 percent, 6-year loan with monthly payments. He has decided that he would sell the car now, if he could get a price that would pay off the balance of his loan. What's the minimum price Hank would..

  Statements is true of amortization

Which of the following statements is true of amortization?

  What is the percentage change in the price of bond

Both Bond Sam and Bond Dave have 6 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has five years to maturity, whereas Bond Dave has 18 years to maturity. If interest rates suddenly rise by 2 percent, what is the perc..

  The categorical imperative is the essential base component

The categorical imperative is the essential base component of:

  Charge for depreciation and amortization

Talbot Enterprises recently reported an EBITDA of $8 million and net income of $4 million. It had $1 million of interest expense, and its corporate tax rate was 36%. What was its charge for depreciation and amortization?

  What will your annual loan payment be

Annuity Values Betty's Bank offers you a $7,000, six-year term loan at 10 percent annual interest. What will your annual loan payment be?

  Present value and future value annuities and annuity dues

Discuss present value and future value annuities and annuity dues. What is the timing of cash flows? What are their differences? What are the advantages of both? How are they used by financial management?

  Rate of return can investors expects to turn on investment

An investor is thinking about buying some shares of razortronics Inc. at $75 a share. She expects the price of the stock to rise to $115 a share over the next three years during that time, she also expects to receive annual dividends of four dollars ..

  What is the implicit interest for this bond in year

Lee Michaels Jewelers recently issued a $1,000 face, 10 year zero coupon bond. The initial offering sold in January, 2008 for $500. Despite the fact that the bond doesn’t pay interest, the IRS says you must declare the implicit interest for tax purpo..

  What does the term interest rate inversion

What does the term "INTEREST RATE INVERSION" refer to? For the past several years, the Federal Reserve System has forced short-term interest rates to nearly zero. Why has it not been able to do the same for long-term interest rates? Explain.

  Retail investors picking stock underperform index

Retail investors picking stock underperform index by 1.5% per year. Total returns on market index is 7.5%. Suppose I start with 1000$ today and invest for 50 years. Let x be real dollars I have at end of 50 years put in market. Let y be real dollars...

  Triumph company has total assets worth 6413228 next year it

1.planning models that are more sophisticated than the percent of sales method have2.firms that achieve higher growth

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd