Determine the present value of cash flow stream

Assignment Help Finance Basics
Reference no: EM131317353

Consider a lottery that pays to the winner an annuity of $800 that begins at the end of the first year and continues at the end of each consecutive year for a total of 18 years with one exception. Because of high administrative costs associated with running the lottery, the payment in year 5, and only in that specific year, is not $800 but $0. Using an interest rate of 4.50%, determine the present value of this cash flow stream.

Reference no: EM131317353

Equivalent present value of the inheritance

You learn that your inheritance will allow you to receive the amount of $5800 at the end of each year for a total of 12 consecutive years. However, because of your young age

Researching investments and bought a stock

Anne has been researching investments and bought a stock today for $21 per share. Anne's research tells her that she will be able to sell the stock in 5 years for $61 per sh

Amount to support the trip

Luke is saving for a trip around the world for his family and as of today has accumulated $2315 in a trip fund. His goal is to accumulate 4 times this amount to support the

What contract price will you get a margin call

You bought the contract during the day at 2010, and had to put up initial margin of $25,000. The maintenance margin is $12,500. At what contract price will you get a margin

Company with a retirement program

Lauren has worked for a company with a retirement program, and today is retiring from her job with the amount of $125000 in her retirement account. She decides to withdraw a

Price of multiple of 8 times ebitda

Capital Budgeting Analysis: You have been asked to evaluate a potential acquisition of a smaller privately owned competitor. The acquisition candidate produces an EBITDA of

Treynor ratio of a correctly-valued portfolio

The U.S. Treasury bill is yielding 1.85 percent and the market has an expected return of 7.48 percent. What is the Treynor ratio of a correctly-valued portfolio that has a b

What is its current stock price

KMS Corporation has assets with a market value of $500 million, $50 million of which are cash. It has debt of $200 million, and 10 million shares outstanding. Assume perfect

Reviews

Write a Review

 
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