Future value of investment cash flows at end of three years

Assignment Help Financial Management
Reference no: EM131026133

Chuck Brown will receive from his investment cash flows of $3,175, $3,460, and $3,830 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at the end of three years?

Reference no: EM131026133

Questions Cloud

Find the value of y in each formula if x=-3 : Solve each equation. Identify each equation as a conditional equation, an inconsistent equation or an identity.
What is the approximate value of the car you can purchase : An investment offers 10,000 per year, with the first cash flow to be received today. If the relevant interest rate is 8% per year, what is the pv of the investment ( at year 0). You can make 450 monthly payments for 5 yrs on a new car. If the interes..
The release of carbon dioxide and water. : Formula.  It is describing the oxidation (or burning) of octane (a major component in gasoline).  The result is the release of carbon dioxide and water.
What is the return shareholders are expecting : Paychex Inc. (PAYX) recently paid an $0.70 dividend. The dividend is expected to grow at an 11 percent rate. The current stock price is $41.31. What is the return shareholders are expecting?
Future value of investment cash flows at end of three years : Chuck Brown will receive from his investment cash flows of $3,175, $3,460, and $3,830 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at th..
Find the developed torque and efficiency of the motor : A shunt-connected motor delivers an output power of 24 h p at 1200 rpm while operating from a source voltage of 440V and drawing IL = 50A. The resistances are RA = 0.05 Ω and RF +Radj = 100 Ω. Find the developed torque and efficiency of the motor.
Prepare the journal entries to record the transactions : AMG Inc. had the following balances in its shareholders' equity at the beginning of the current year: Prepare the journal entries to record the transactions. Determine the number of shares outstanding. Prepare the Shareholder’s Equity section of the ..
Prepare the after closing trial balance at december 31 2015 : Presented below are the accounts of an adjusted trial balance for walid company atndecember 31, 2015.
How many electrons in a ground-state krypton : How many electrons in a ground-state krypton atom are in orbitals labeled by ml = 1

Reviews

Write a Review

Financial Management Questions & Answers

  What should the share price be in one year

A share of stock sells for $44 today. The beta of the stock is 1.6, and the expected return on the market is 12 percent. The stock is expected to pay a dividend of $.70 in one year. If the risk-free rate is 4.3 percent, what should the share price be..

  Find the price of a prepaid four year forward contract

The current price of a stock is 100 and the continuously compounded interest rate is 4%. A dividend will be paid every quarter for the next 4 years, with the first divident paid 3 months from now. The amount of the first divident is 2, and each subse..

  Landscaping service but lee refused to pay

Clarkson and Lee did not have a contract, but Clarkson completed extensive landscaping in Lee’s yard by mistake while Lee was away on vacation. Clarkson sent Lee a bill for the landscaping service but Lee refused to pay. Determine the likely result i..

  How many shares must he sell to create a homemade dividend

A firm has $500 million of assets that includes $50 million of cash and 10 million shares outstanding. The firm uses $50 million of its cash to pay dividends. If an investor has 1000 shares, how many shares must he sell to create a homemade dividend ..

  What is the present value of growth opportunities for ART

ART has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback ratio of 0.25. Its earnings this year will be $2 per share. Investors expect a 12% rate of return on the stock. a) At what..

  Recent flooding has damaged the spillway of the state

Recent flooding has damaged the spillway of the state owned Crab Claw Dam near Puke Bay, Oregon, and it must be repaired or replaced. Two alternatives are available: Recent flooding has damaged the spillway of the state owned Crab Claw Dam near Puke ..

  Working in business to learn the ropes

You have a two children, A and B. Child A is not going to college but is working in a business to learn the ropes. Child A plans on opening a business someday. Child B is attending college. You put a certain amount of money into an account.

  Owner ship and control are not separated

Sole proprietorships have all of the following advantages except easy to set up. single taxation of income. Limited liability. Owner ship and control are not separated.

  Representative investors average degree of risk aversion

The expected rate of return on the market portfolio is 11.50% and the risk–free rate of return is 2.00%. The standard deviation of the market portfolio is 19.75%. What is the representative investor’s average degree of risk aversion?

  Tax considerations and their effect on mergers-acquisitions

What are the tax considerations and their effect on mergers and acquisitions? What effect do mergers and acquisitions have on future financial performance? Is there a balance sheet and income statement effect; if so what is/are they? What effect does..

  New concrete mixer to replace an inefficient older model

Auburn Concrete Inc. is considering the purchase of a new concrete mixer to replace an inefficient older model that is completely worn out. If purchased, the new machine will cost $90,000 and is expected to generate savings of $40,000 per year for fi..

  Level production-what should be their average inventory

Warren Enterprises expects 20,000 unit sales, has ordering costs of $20 per order, carrying costs of $1.00 per unit, and desires to keep 100 units in safety stock. Assuming level production, what should be their average inventory?

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