What is the future value of the cash flow stream

Assignment Help Financial Management
Reference no: EM131027142

At a rate of 8%, what is the future value (at the end of year 4) of the following cash flow stream: $0 at time 0; $92 at the end of year 1; $91 at the end of year 2; and $52 at the end of year 4? Enter your answer with 2 decimal places of precision. Do not round intermediate values.

Reference no: EM131027142

Questions Cloud

What is the amount of the lease-equivalent loan : Riverton Mining plans to purchase or lease $435,000 worth of excavation equipment. If purchased, the equipment will be depreciated on a straight-line basis over five years, after which it will be worthless. If Riverton purchases the equipment, what i..
Risk-free monthly lease rate : Suppose an H1200 supercomputer has a cost of $500,000 and will have a residual market value of $100,000 in 5 years. The risk-free interest rate is 6.1% APR with monthly compounding. What is the risk-free monthly lease rate for a 5-year lease in a per..
CPU chips with lower power consumption and heat generation : Consider two mutually exclusive R&D projects that ADM is considering. Assume the discount rate for ADM is 13 percent. Project A: Server CPU .13 micron processing project By shrinking the die size to .13 micron, ADM will be able to offer server CPU ch..
Forecasting pro forma financial statements : Forecasting Pro Forma Financial Statements Prepare a pro forma income statement and balance sheet for Webb Enterprises, where revenues are expected to grow by 20% in 2016. Make the following assumptions in making your forecast of the firm’s balance s..
What is the future value of the cash flow stream : At a rate of 8%, what is the future value (at the end of year 4) of the following cash flow stream: $0 at time 0; $92 at the end of year 1; $91 at the end of year 2; and $52 at the end of year 4? Enter your answer with 2 decimal places of precision. ..
What is the bonds yield to maturity and yield to call : General Electric has just issued a callable (at par) ten-year 8% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $104 and a face value of $104. What ..
Offer to compensate her for the loss in tax benefit : Suppose that a worker received $56,000 in wage at a job that also provides health insurance. A health insurance policy costs $7,000. The employee is considering moving to a job without health insurance at which she would have to purchase health insur..

Reviews

Write a Review

Financial Management Questions & Answers

  An investor has two investments a and b

An investor has two investments A and B. The investor believes that investment A is equally likely to increase by $1,000 or to decrease by $1,000 by the end of the year.

  Initiating a cash discount

Initiating a cash discount; a company is considering offering a 3% discount for payment within 15 days, the current average collection period is 60 days. Sales are 40,000 units and the selling price is $47 per unit. If the firms required rate of retu..

  Considering two independent projects

You are considering two independent (not mutually exclusive) projects both of which have been assigned a discount rate of 15%. Based on the profitability index, what is your recommendation concerning these projects?

  Biotechnology firm that is about to announce the results

Theorem Medical, is a biotechnology firm that is about to announce the results of its clinical trials of a potential new cancer drug. If the trials were successful, Theorem stock will be worth $65 per share. Based on the current share price, what sor..

  What is the standard deviation of your portfolio

Suppose you invest $4,500 in Stock A and $5,500 in Stock B. The variance of Stock A is 10%, the variance of Stock B is 20%, and the covariance between the two stocks is 1.87%. What is the standard deviation of your portfolio (in percent)?

  The cost percentage of a new common stock issue

What is the cost percentage of a new common stock issue?

  In 1930 the highest paid player in major league baseball

1 in 1930 the highest paid player in major league baseball was babe ruth of the new york yankees with an annual salary

  Assume that first withdrawal will be made day you retire

You plan to deposit $2,400 per year for 4 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 4 years? Assume that your first withdr..

  Explain the book value and market value of the firm

What are the book value and market value of the firm, and 2) if there are 2 million shares of stock in the new corporation what would be the price per share and the book value per share.

  What is expected change in futures contracts market price

Suppose a $100,000 T-Bond futures contract whose underlying's duration is 9 years and has a current market price of $98,750. Market interest rates are 6 percent today but are expected to rise to 7.5 percent. What is the expected change in this future..

  Affect money demand and the nominal interest rate

Suppose that competition amongst bond brokers causes bonds to become more liquid. Using the liquidity preference model, show graphically how this will affect money demand and the nominal interest rate

  Capital investment financial analysis problem

Design your own Capital Investment Financial Analysis problem, with all four steps included. The steps the text shows as capital decision making process are: 1. generation of project information, 2. evaluation of projects (solvency & costs),

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