Each equal semi-annual cash flow in the equivalent series

Assignment Help Financial Management
Reference no: EM131067561

A series of quarterly cash flows began with the first cash flow on April 1,1990 and ends with the last cash flow on January 1,2000. The first quarterly cash flow is equal to $24,000. Each successive cash flow increases $850. The series of quarterly cash flows is equivalent to a series of equal semi-annual cash flows. The equivalent series of equal semi-annual cash flows starts with the first cash flow occur­ring on July 1,1997. The last equal semi-annual cash flow in the equivalent series occurs on January 1, 2010. Use a nominal interest rate of 13% and continuous compounding. Determine the amount of each equal semi-annual cash flow in the equivalent series.

Reference no: EM131067561

Discount rate-calculate the net present value-payback

Using a 4.5% discount rate, calculate the Net Present Value, Payback, Profitability Index, and IRR for each of the investment projects below (note, the inflows are for each ye

How much will you pay for the stock

The Sleeping Flower Co. has earnings of $1.48 per share. If the benchmark PE for the company is 15, how much will you pay for the stock? If the benchmark PE for the company is

Amount of annual net cash flow generated by the business

Tawanna is considering starting a small business. She plans to purchase equipment costing $149,000. Rent on the building used by the business will be $26,000 per year while ot

Indifferent between leasing and financing purchase

Suppose Procter and Gamble? (P&G) is considering purchasing $10 million in new manufacturing equipment. If it purchases the? equipment, it will depreciate it on a? straight-li

Financial statements for its first year in business

In its closing financial statements for its first year in business, ABC Enterprises, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,4

George bought european put option contract

George bought a European put option contract in UWY stock from Julie with a striking price of $34.68 per share. He paid $0.67 per share for this option contract. The size of t

What will be remaining balance on mortgage after ten years

The Smith Family recently entered into a 30-year mortgage for $300,000. The mortgage has a 4.25 percent nominal interest rate. Interest is compounded monthly. What will be the

Monthly payment-what is the effective annual rate on loan

You want to buy a new sports coupe for $75,500, and the finance office at the dealership has quoted you an APR of 5.7 percent for a 60 month loan to buy the car. What will you

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