Financial calculator methods-what is the present value

Assignment Help Financial Management
Reference no: EM131022457

What is the present value of $180,000 to be received after 30 years with a 17 percent discount rate? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods

Reference no: EM131022457

Questions Cloud

Concepts and fundamentals of risk-return and risk preference : Discuss the basic meanings and concepts and fundamentals of risk, return, and risk preference.
An amount p must be invested now to allow withdrawals : An amount, P, must be invested now to allow withdrawals of $1,000 per year for the next 15 years and to permit $320 to be withdrawn starting at the end of year 5 and continuing over the remainder of the 15-year period as the $320 increases by 4% per ..
Cash flow statements for retailing giant bigbox spanning : The cash flow statements for retailing giant BigBox spanning the period 2010-2013 are found here. Did BigBox generate positive cash flow from its operations? How much did BigBox invest in new capital expenditures over the period?
Considering your retirement : You are considering your retirement, and would like to have accumulated $2,295,734 by the time you retire in 34 years. If you anticipate that your average compounded rate of return over the 34 years until retirment will be 13%, how much will you need..
Financial calculator methods-what is the present value : What is the present value of $180,000 to be received after 30 years with a 17 percent discount rate? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods
What was the growth rate in earnings per share : 10 years ago, Weed Go Inc. earned $0.93 per share. Its earnings this year were $3.64. What was the growth rate in earnings per share (EPS) over the 10-year period? State your answer as a percentage to two decimal places (e.g. 16.38%). The % sign is n..
Distinguish between operating leases and financial leases : Distinguish between operating leases and financial leases. Would you be more likely to find an operating lease employed for a fleet of trucks or for a manufacturing plant? Explain
Expected to generate cash flows : You have the opportunity to purchase an asset that is expected to generate cash flows for the next 27 years. The purchase price of the asset is $9,526,195. What annual annuity cash flow would you have to expect to receive over the life of the asset i..
Often by issuing speculative or junk : Continuing with the RJR situation - an LBO means that the take-over company borrows an enormous amount of money (often by issuing speculative, or "junk" bonds) and uses those borrowed funds to buy-back the common stock. After the take-over, which of ..

Reviews

Write a Review

Financial Management Questions & Answers

  Comparing two different capital structures

Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Kyle would have 790,000 shares of stock outstanding. Under Plan II, there would be 540,000 shares of stock outstan..

  Market prices can be efficiently priced

Market prices can be efficiently priced if:

  The after-tax profit margin is forecasted

Broussard Skateboard's sales are expected to increase by 25% from $8.0 million in 2013 to $10.00 million in 2014. Its assets totalled $4 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as pr..

  The return on equity for similar stocks

A stock has just paid a dividend and has declared an annual dividend of $2.00 to be paid one year from today. The dividend is expected to grow at a 5% annual rate. The return on equity for similar stocks is 12%. What is P0?

  Example of an easy or difficult capital budgeting decision

In a recent WSJ article you read that Hulu has stepped up their competition with Netflix by making the decision to invest millions in new movies and TV shows. Do you think this would be an example of an easy or difficult capital budgeting decision? W..

  Decides to issue equity to finance the purchase

Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. Explain. Construct Stephenson’s market value balance sh..

  Accountant estimates that income taxes expense

Unadjusted trial balance dated December 31, 2015, reports Income Taxes Expense of $70,000, and Income Taxes Payable of $20,000. The company’s accountant estimates that income taxes expense for the entire year ended December 31, 2015, is $85,000.

  Capital budgeting and investment analysis

Who will benefit most from the machine if the technology underlying the machine is not proprietary and what are some of the things the manufacturer can do to earn higher returns from this machine even without patent protection?

  Inventory ordering policy

Why might a manager be forced to use simulation instead of an analytical model in dealing with a problem of inventory ordering policy

  Maximum recommended monthly consumer credit payment

If my gross salary is $36,000 annually and her after-tax income is $28,800. What is my maximum recommended monthly consumer credit payment? How do you figure this out?

  How do you trade to take advantage of the change in skew

Suppose the following data are given. The current price of XYZ stock is $38/share. XYZ does not pay a dividend. The (annualized) six-month interest rate is 4%. There are six-month call and put options on XYZ stock.

  Business will be worthless

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $9,953, $6,030, and $13,798 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determ..

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