What is present value of the savings

Assignment Help Financial Management
Reference no: EM13848203

Your company will generate $60,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.50 percent, what is the present value of the savings? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Present value    $

Reference no: EM13848203

Questions Cloud

Business and ethics scenario : Business And Ethics Scenario
About the monthly payment : You want to buy a new sports car from Muscle Motors for $68,000. The contract is in the form of a 72-month annuity due at an APR of 6.75 percent. What will your monthly payment be?
Assignment- race empowemement and cultural comptence : Assignment : Race, Empowemement, and Cultural Comptence 2-4 page paper. Answer the following questions: How does your family and Religious system lead to your idea about your own racial ethnic group as well as the racial and ethnic of others
Investment banking firm-two different salary arrangements : You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $72,000 per year for the next two years, or you can have $61,000 per year for the next two years, along wi..
What is present value of the savings : Your company will generate $60,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.50 percent, what is the present value of the savings?
Invest today in order to have retirement annuity : Hadley wants to retire in 15 years, and he wants to have an annuity of $50,000 a year for 10 years after retirement. Hadley wants to receive the first annuity payment the day he retires. Using an interest rate of 8%, how much must Hadley invest today..
Describe the social or economic justice issue : Describe the social or economic justice issue in the case study, explaining how this issue influences the subject(s) of the case study. Identify at least two strategies you could use to address the issue when you encounter it among clients
Evaluation team with enough information : The aim of this activity is to provide the evaluation team with enough information as to determine if the topic chosen is both appropriate and doable.
What is present value of the annuity : What is the present value of the following annuity? $1,021 every half year at the beginning of the period for the next six years, discounted back to the present at 8.93 percent per year, compounded semi annually?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Entire amount of the transaction deposits

As of today, the First ECON Bank of Arlington currently holds: If we assume that that entire amount of the transaction deposits is a subject to the legal 10% reserve requirement, please indicate the required course of the bank’s action to manage its ..

  Given the vast resources available to mutual fund managers

Given the vast resources available to mutual fund managers, these managers on average have generally:

  Calculate the present value of the retirement benefit

Stan elects to receive his retirement benefit over 10 years at the rate of 2000 per month beginning one month from now. The monthly benefit increases by 5% each year. At an annual nominal interest rate of 6% compounded monthly, calculate the present ..

  Equity financing might be obtained from

Equity financing might be obtained from various sources such as personal money, household, associates, families, venture capital or going public by issuing Initial Public offerings. Is there a limit as to just how much equity financing a firm can ..

  Used as the initial cash flow

Dilwater Furniture purchased a corner lot in Pittsburg five years ago at a cost of $890,000. The lot was recently appraised at $1,070,000. At the time of the purchase, the company spent $80,000 to grade the lot and another $120,000 to pave the lot fo..

  What is the highest interest rate-refinance the mortgage

A homeowner took out a 30-year, fixed-rate mortgage of $310,000. The mortgage was taken out 10 years ago at a rate of 7.50 percent. If the homeowner refinances, the charges will be $2,500. What is the highest interest rate at which it would be benefi..

  Issue a bond with semi-annual coupon payments

XYZ Company is about to issue a bond with semi-annual coupon payments, a coupon rate of 9%, and par value of $1,000. The yield-to-maturity for this bond is 11%. What is the price of the bond if the bond matures in five, ten, fifteen, or twenty years?

  Effective interest rate

Effective interest rate. You borrow $55,000; the annual loan payments are $3,180.66 for 30 years. What interest rate are you being charged?

  What is the firms cost of debt

A firm has a weighted average cost of capital of 10.295 percent and a cost of equity of 14.7 percent. The debt-equity ratio is 0.75. Tax rate is 32%. What is the firm's cost of debt? Sabrina's just paid an annual dividend of $0.88 per share. This div..

  Discuss the benefits to an mnc of accepting the global

discuss the benefits to an mnc of accepting the global market concept.explain three points that define a global

  Explain the meaning of the debt capacity calculation

Explain the meaning of the debt capacity calculation at row 62 and explain how the EBIT Chart works (inputs determining the outputs-the two lines on the chart and the indifference point.

  Acme corp new product development team the team is

acme corp. new product development team. the team is comprised entirely of design engineers and is meeting in the

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