What is present value of technology if discount rate

Assignment Help Financial Management
Reference no: EM13889689

Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $182,000 received two years from today. Subsequent annual cash flows will grow at 4.2 percent in perpetuity.

What is the present value of the technology if the discount rate is 9 percent?

Reference no: EM13889689

Questions Cloud

Sufficient funds to pay cash for entire construction project : Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $29 million. The CEO of the firm is quite conservative and will only do this when the company has sufficient funds to pay ..
Calculate the dupont model : Calculate the DuPont Model, given the following information: cash = $16,080; accounts receivable = $9,500; prepaid = $3,150; supplies = $675; equipment = $25,200; accumulated depreciation - equipment = $8,150 for year one. Cash = $20,000; accounts re..
In the marketing research process : In the marketing research process, why do firms often gather and analyze secondary data rather than primary data?
Calculate the present value of the project : Southern California Publishing Company is trying to decide whether to revise its popular textbook, Financial Psychoanalysis Made Simple. The company has estimated that the revision will cost $75,000. Cash flows from increased sales will be $20,300 th..
What is present value of technology if discount rate : Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $182,000 received two years from today. Subsequent ..
What is the stage of product development : What is the stage of product development that involves launching a new product into the market is called?
Topic of employee engagement or management : Select an article based on the topic of employee engagement or Management's Ethical Responsibility to Employees. Review the article using the following format with the headings indicated in bold below:
What is behavioral targeting : What is behavioral targeting? How can it be used to exploit business opportunities? What ethical problems can arise from behavioral targeting on the internet? How can combining ethics and psychology contribute to the advancement of effective behavior..
Permitted to pay one-third the normal annual payment : A $20,000 loan with interest at 3.5% is being repaid by 35 level annual payments, the firs one due one year hence. Beginning with the 17th payment, the borrower is permitted to pay one-third the normal annual payment. After the 12th reduced payment, ..

Reviews

Write a Review

Financial Management Questions & Answers

  Semi-annual bond with a coupon rate

XYZ has just sold a callable bond. The bond is a thirty year semi-annual bond with a coupon rate of 8%. Investors, however, can call the bond starting at the end of ten years. If the yield-to-call on this bond is 10% and the call requires XYZ to pay ..

  Corporate responsibility and marketing strategies

Use the Internet to research the Apple Corporation, its current position and reputation regarding ethical and social responsibility, and the strategies that it currently employs to market its products.

  Calculate the npv of the project using the apv method

A firm has decided to replace a major piece of industrial equipment. The equipment costs $690,000 to purchase and install and is expected to have a useful life of 5 years, after which it will be sold on the open market and is expected to have a salva..

  Suppose the yield to maturity on the bond increases

You find a bond with 25 years until maturity that has a coupon rate of 10.0 percent and a yield to maturity of 8.5 percent. Suppose the yield to maturity on the bond increases by .25 percent. What is the new price of the bond using duration?

  Capital structure will the firm run out of retained earnings

Medical Research Corporation is expanding its research and production capacity to introduce a new line of products. Current plans call for the expenditure of $100 million on four projects of equal size ($25 million each), but different returns. At wh..

  Order to improve their ability to save for life stages

People use TVM for future financial planning in order to improve their ability to save for life stages and purchases. TVM is a part of our daily life. Let’s assume we have $ 1000 to invest with 6% interest rate and we like to double our money. How lo..

  Straight supply straight supplystraight supply is a major

straight supply ltbrgt ltbrgtstraight supply is a major supplier of medical components to large pharmaceutical

  Reinvestment risk differ from interest-rate risk

How does reinvestment risk differ from interest-rate risk? Identify and explain the four factors that influence asset demand. Which of these factors affect total asset demand and which influence investors to demand one asset over another?

  How much will the firm pay if it takes the cash discount

Lyman Nursuries purchased seeds costing $25,000 with terms of 3/15 net 30 EOM on January 12. How much will the firm pay if it takes the cash discount? What is the approximate cost of giving up the cash discount, the simplified formula?

  Consider the following data for abc enterprises all numbers

consider the following data for abc enterprises all numbers in euro today is january 1 2013 income statement for 2012

  Best classified as unsystematic risk

Which one of the following is best classified as unsystematic risk?

  Market value of equity and debt

Jonah’s Fishery has EBITDA of $67 million. Jonah’s market value of equity and debt is $433 million and $40 million, respectively. Jonah has cash on the balance sheet of $16 million. What is Jonah’s EV ratio?

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