Calculate the present value of a stream of cash flows based

Assignment Help Business Management
Reference no: EM13804730

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 Essentials 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:

  • Calculate the future value of $100,000 ten years from now based on the following annual interest rates:

o    2%

o    5%

o    8%

o    10%

 

  • Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows:

o    Year 1 = $100,000

o    Year 2 = $150,000

o    Year 3 = $200,000

o    Year 4 = $200,000

o    Year 5 = $150,000

o    Years 6-10 = $100,000

 

  • Calculate the present value of the cash flow stream in problem 2 with the following interest rates:

o    Year 1 = 8%

o    Year 2 = 6%

o    Year 3 = 10%

o    Year 4 = 4%

o    Year 5 = 6%

 

o    Years 6-10 = 4

 

Reference no: EM13804730

Questions Cloud

Write an analysis paper about a story the story of an hour : Write an analysis paper about a story "The Story of An Hour" by Kate Chopin.
Evaluate the effect of organizational structure : Evaluate the effect of organizational structure and governance, culture, and social responsibility focus on what happened in your chosen situation. Recommend how you would change the organization to prevent this situation in the future.
Distributed network management system : What are some of the advantages of using a distributed network management system in the corporate enterprise? What are some of the concerns that must be considered in order to provide an integrated network management solution to the enterprise
An approximate 90% confidence interval for p. : Let Y be a Binomial random variable with n = 300, and probability of success p. If the observed value of Y is y = 75, find an approximate 90% confidence interval for p.
Calculate the present value of a stream of cash flows based : 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 ..
Define the exceptions of abortion and the dream act : Choose any topic they wish with the exceptions of abortion and the Dream Act. Any student writing their research paper on either abortion or the Dream Act will receive No Credit for the assignment.
Write an essay about benefits of obama care insurance : Write an essay about benefits of obama care insurance. need 5 pages.
Host country and doing ethical businesses : First and foremost, the country that is going into a host country and doing ethical businesses must be familiar with the laws of conducting business in the country.
If zaabalawi is a symbol what does he symbolize : If Zaabalawi is a symbol, what does he symbolize? Explain. Discuss "Zaabalawi" as a story, pure and simple, in terms of the refrain from the childhood song, that the world has lost all its taste.

Reviews

Write a Review

 

Business Management Questions & Answers

  Professional communicationsafety training at the moline

professional communicationsafety training at the moline plant has been completed. as a member of the team that

  Organizational commitmentdo you have organizational

organizational commitmentdo you have organizational commitment? why or why not? what way could your company improve

  Compute the wacc

Common stock- 150,000 shares outstanding, selling for $60 per share, the beta is 1.11. Market: 9.5 percent market risk premium and 7.5 percent risk-free rate. Compute the WACC.

  Create a competitive analysis of an ice cream shop

Identify each of the squares as to the price and number of flavors the ice cream shop would sell if this was their target segment of the market. Elaborate on the customer's purchasing characteristics for each square.

  Potential opportunities, and potential threats for metlife

Discuss and explain two responses for each of following two products: Potential opportunities, and potential threats for MetLife. Be sure to respond in a manner that is consistent with the definition of each.

  Kinds of products or service of de beers diamond company

types of products or service of De Beers Diamond Company, and two (2) key factors in the organization's external environment that can affect its success. Provide explanation to support the rationale.

  The decomposition approach to forecasting

The decomposition approach to forecasting (using trend and seasonal components) may be helpful when attempting to forecast a time-series. Could an analogous approach be used in a multiple regression analysis? Explain briefly.

  Marketing group devoting online ad space is offering

A marketing group devoting online ad space is offering two payment options: Options 1: $210 set up fees plus $10/inch of the ad Option2: No set up fee but $25/inch of the ad. Write a mathematical model representing the total ad cost, C, in terms o..

  Why is management control important to financial planning

Why is management control important to financial planning and what are the dangers of not incorporating management control into the financial plan? Provide an example to support your answer.

  Companies seeking to make partial or full acquisitions

companies seeking to make partial or full acquisitions of companies in frontier markets in order to expansion managerial control of these ventures?

  Key opperating efficiencies in the supermarket business1

key opperating efficiencies in the supermarket business1. what are the key drivers of operating efficiency in the

  Describe a memo to your manager explain plan successfully

Describe a memo to your manager explain how you plan successfully lead your team. include the following

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