Expected to generate fixed annual cash flows

Assignment Help Business Economics
Reference no: EM131011257

What is the value of a building that is expected to generate fixed annual cash flows of 89,550 dollars every year for a certain amount of time if the first annual cash flow is expected in 5 years from today and the last annual cash flow is expected in 12 years from today and the appropriate discount rate is 11.89 percent?

Reference no: EM131011257

Questions Cloud

Determine the annual return on the project based on initial : Project LMN has an initial cost of $10,000 and annual cash inflows of $2,825, $3,192, $3,607, and $4,076 in years 1–4. What is the NPV assuming a 12% discount rate? When the project was completed, none of the cash flows were reinvested. Sum up the ca..
What is the purpose of a margin call : What is the purpose of a margin call?
What is the stocks expected return-standard deviation : You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.25 18% Normal 0.5 9% Weak 0.25 -5% What is the stock's expected return?
Carlyon company listed the following equity items : Carlyon Company listed the following equity items on December 31, 2012:
Expected to generate fixed annual cash flows : What is the value of a building that is expected to generate fixed annual cash flows of 89,550 dollars every year for a certain amount of time if the first annual cash flow is expected in 5 years from today and the last annual cash flow is expected i..
In what ways can distorted perception affect your decisions : Choose one of the following from the Gestalt Laws of Organization (Top-Down and Bottom-Up Processing, Perceptual Constancy, Depth Perception, or Motion Perception) In what ways can distorted perception affect your decisions
What will be start-ups ratio of market value to book value : Start-Up Industries is a new firm that has raised $320 million by selling shares of stock. Management plans to earn a 20% rate of return on equity, which is more than the 12% rate of return available on comparable-risk investments. What will be Start..
What level of reduction corresponds to lowest average cost : What level of reduction corresponds to the lowest average cost per pound of pollutant? What would be the resulting average cost to the nearest dollar?
What is the value of building if the first annual cash flow : A building is expected to generate no cash flows for several years and then generate annual cash flows forever. What is the value of the building if the first annual cash flow is expected in 3 years from today, the first annual cash flow is expected ..

Reviews

Write a Review

Business Economics Questions & Answers

  Effect and another for the reason and mechanism

Please answer each part of the following question with 2 short sentences. One for the effect and another for the reason/mechanism. In each case below, please identify the effect on the market for coal and mention briefly the mechanism yielding to thi..

  Tax at the end of the year using progressive income tax

Your income last year accounts to $77,000.00 tax bracket are as follows :$0 - 20,000 pays 5% Above $20,000 to $50,000 pays 10% above $50,000 pays 15%. How much is your tax at the end of the year using 15% proportional income tax? How much is your tax..

  Support your recommendation with data from your analysis

Recommend which company you consider as the better investment for your client and how you will present your recommendation.  Support your recommendation with data from your analysis.

  Overall speedup by using the floating-point processor

You have a system that contains a special processor for doing floating- point operations. You have determined that 60% of your computations can use the floating-point processor. When a program uses the floating-point processor, the speedup of the flo..

  Illustrate account in order to make a decision of policy

Illustrate what or considerations may be taken into account in order to make a decision on implementation of policy.

  Which type of research design is appropriate

Which type of research design is appropriate

  What is the expected value of the gamble

You have initial wealth of $500 and are offered the following gamble. You flip a coin and if you get heads, you win $1000. If you get tails you lose $500. What is the expected value of the gamble?

  Explain how will this affect the relationship

Suppose the government implements a policy that subsidizes business investment. Explain how will this affect the relationship between investment and the interest rate.

  Socially efficient equilibrium price and quantity of coal

Suppose the inverse demand for coal is estimated to be P = 75 - 0.6Q, where P is the price of coal and Q is the quantity demanded. The supply of coal is given by P = 0.3Q. Suppose coal mining produces an external marginal user cost. This cost equals ..

  The college must receive payments equal to its total cost

A small college has space for a maximum of 1,000 students. The college can identify 500 of its students who are willing to pay $20,000 per year and 500 students who are willing to pay $10,000 per year. If the college charges all students the same tut..

  Got a lot of consumer surplus from her purchases

If your neighbour returns from a shopping trip saying that she got a lot of consumer surplus from her purchases

  Determine the environmental variable most likely to affect

determine the environmental variable most likely to affect the short-run production over the next 12 months. Determine what managers can do to prepare for the possible change in short-run production. Pick a real or fictitious business.

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