What is present value of the cash flows

Assignment Help Financial Management
Reference no: EM131343277

The appropriate discount rate for the following cash flows is 9 percent compounded quarterly. Year Cash Flow 1 $ 780 2 860 3 0 4 1,450 What is the present value of the cash flows? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Present value $

Reference no: EM131343277

Questions Cloud

Policy analysts should research the issues : PAD 520- Policy analysts should research the issues and determine the fundamental causes of social problems such as crime, poverty, or homelessness and then recommend solutions.
What is the six-month forward exchange rate : The nominal yield on 6-month T-bills is 8%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 3.5%. In the spot exchange market, 1 yen equals $0.005. If interest rate parity holds, what is the 6-month forward exchange r..
How you calculate each cost schedule : BUS102 Introduction to Microeconomics - If Australia increases its production of ethanol from 40 barrels per day to 54 barrels per day, what is the opportunity cost of an additional barrel of ethanol?
Discuss the history of jails in america : Discuss the history of jails in America. What are the three phases of architectural design? Your response should be at least 250 words in length
What is present value of the cash flows : The appropriate discount rate for the following cash flows is 9 percent compounded quarterly. Year Cash Flow 1 $ 780 2 860 3 0 4 1,450 What is the present value of the cash flows?
Interest payments are paid annually : Suppose you bought a 20-year, $1,000 face-value bond for par 5 years ago. The annual coupon rate on this bond is 8.5% and interest payments are paid annually. The annual coupon rate on this bond is 8.5% and interest payments are paid annually. If ret..
Illustrate how the analysis changes the status quo : PAD 520- "Analysis in Practice" Please respond to the following: From the e-Activity, provide two examples from the same article that illustrate how the analysis changes the status quo.
Discuss how an organization can measure progress : Explain how an organization can create an expectation for moral conduct; and Discuss how an organization can measure progress towards a moral and just criminal justice department
Why at one time there was no health insurance : Why at one time there was no health insurance and why it was socially sufficient for Fred or Frieda Farmer to simply barter with his/her doctor.

Reviews

Write a Review

 

Financial Management Questions & Answers

  An investment has required return

An investment has a required return of 13 percent. The cash flows, in order, are -$42,000 (initial cost), $16,500 (year 1 CF), $28,400 (year 2 CF) and $7,500 (year 3 CF). Based on IRR, should this project be accepted? Why or why not?

  Find the profits for the possible stock prices on august 1

Use the spreadsheet to find the profits for the possible stock prices on August 1. Generate a graph and use it to estimate the breakeven stock price at the end of the holding period.

  What is annual rate of return you earned investment horizon

In 2009, you purchased a 10 year, 8% semiannual coupon bond with $1000 par value. The YTM on comparable 10 year securities at the time of the purchase was 6% compounded semi-annually. If you could sell it today (2010) for $1, 091.50, what is the annu..

  What is the future value-interest rate

What is the future value of $2,900 in 19 years assuming an interest rate of 8.2 percent compounded semiannually?

  Effective rate of return on this loan transaction

You are going to buy a new car worth $23,500. The dealer computes your monthly payment to be $516.55 for 60 months of financing. What is the dealer's effective rate of return on this loan transaction?

  Since new stock has higher cost than retained earnings

Bankston Corporation forecasts that if all of its existing financial policies are adhered to, its proposed capital budget would be so large that it would have to issue new common stock. Since new stock has a higher cost than retained earnings, Bankst..

  What is present value of annuity

A 10-year annuity pays $2,000 per month, and payments are made at the end of each month. If the interest rate is 12 percent compounded monthly for the first five years, and 8 percent compounded monthly thereafter, what is the present value of the ann..

  What is the cost of preferred stock financing

(Cost of preferred stock) The preferred stock of Gator Industries sells for $38.08 and pays $2.71 per year in dividends. What is the cost of preferred stock financing? If Gator were to issue 525,000 more preferred shares just like the ones it current..

  Analysis of starbucks corporation

Review the requirements of the Chapter 3 Mini-Case, parts b through h. Then apply those requirements to do an analysis of STARBUCKS CORPORATION (TICKER: SBUX). Don't complete the mini case itself, just STARBUCKS. Do the analysis on the basis of the f..

  Create a resource chart and determine the constraints

American Motor Works produces SUVs and Trucks at the same plant. Each SUV requires 4 minutes on the body assembly line, 5 minutes in the paint booth, 8 minutes on the interior installation line and 3 minutes to install the luxury trim. The factory se..

  Calculate the future value of this ordinary annuity

James Smith has a 10-year ordinary annuity that pays $1,500 every 6 months and has an annual percentage rate (APR) of 7.5%. Calculate the future value of this ordinary annuity. Assuming this was an annuity due, calculate the future value of this annu..

  Create semi-annual operating budget

The Miami Art Museum (MAM) is working on the budgets for the 2008 fiscal year, which runs from January 1 through December 31. When the new gallery opens, the Museum forecasts that its average monthly attendance will increase to 13,000. Create a semi-..

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