What is the net present value of the following cash flows

Assignment Help Finance Basics
Reference no: EM13509849

Question 1
What is the net present value of the following cash flows? Assume an interest rate of 14%
Year CF
0 -$14,998
1 $6,113
2 $6,812
3 $9,466
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answers box.

Question 2
If you receive $1,205 at the end of each year for the first three years and $4,414 at the end of each year for the next two years. What is the future value of this cash flow stream? Assume interest rate is 6%.
Question 3
How many years will it take to triple your money at 14% compounded monthly?
Question 4
If you receive $494 at the end of each year for the first two years and $705 at the end of each year for the next two years.
Assume interest rate is 15%. What is the value at the end of the 4th year? That is. solve for FV at the end of the 4th year.
Question 5
ABC is reviewing a project that will cost $1,734.The project will produce cash flows $760 at the end of each year for the first two years and $698 at the end of each year for the next three years. What is the profitability index? Assume interest rate is 14%
Question 6
You are given the following information about ABC Company:
Interest expenses = $6,048
Times Interest Earned Ratio = 2.8 times
Tax Rate = 25.5%
What is the net income?
Question7
ABC Company has $439,077 of operating income after all costs but before $59,298 of interest income, $51,157 of dividend income, and taxes. What is the tax expense?
Question 8
Debbie wants to have $23,330 in her bank account 4 years from now. The account will pay 0.5% interest per month. How much money does she need to put in her bank account at the end of each month to achieve this goal?

Reference no: EM13509849

Questions Cloud

The simple capm is valid and all portfolios are priced : If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%.
Common energy source for electricity generation : Carbon sinks are places on earth that store carbon and include all of the following, EXCEPT: The most common energy source for electricity generation is:
Calculate the work done on the carton by the gravity : A 121.2 N carton is pulled up a frictionless baggage ramp inclined at 27.0 degrees above the horizontal by a rope exerting a 73.2 N pull parallel to the ramp's surface. Calculate the work done on the carton by the gravity
How the organization and society might perceive : Moral issues in business case study assignment Guidelines for Case Analysis - What are the facts in the case?
What is the net present value of the following cash flows : What is the net present value of the following cash flows? Assume an interest rate of 14%
Gases are referred to as high global warming potential gases : Unlike many of the other common carbon stores, fossil fuels are a carbon store that: The most powerful greenhouse gases are referred to as High Global Warming Potential gases. They are given this designation because:
How many electrons were removed from each pith ball : Two pith balls are each suspended on two strings of equal length of 9.5cm from the same point. How many electrons were removed from each pith ball
Intergovernmental panel on climate change : According to the Intergovernmental Panel on Climate Change: According to the United Nations and the United Nations Framework Convention on Climate Change, what makes regions with a high standard of living more responsible for committing to reduce g..
What was your holding period return : Presume you bought $5,000 worth of a stock one year ago for $35.46. It has since paid a dividend of $0.88 per share. The stock closed up $1.24 today, closing at $39.04 per share. Unfortunately, you sold it at yesterday's close. What was you..

Reviews

Write a Review

Finance Basics Questions & Answers

  Computing effective rate of interest

Tucker Drilling Corporation wants to borrow $200,000. Northern National Bank will lend the money at one-half percentage point over the prime rate of 8 1/2% (9 percent total) & requires a compensating balance of 20%.

  What format is this company using to prepare the statement

a colleague is about to make a presentation to the management group regarding a 2 million capital investment proposal.

  How many cups of coffee must it sell to break-even

The Coffee Express has computed its fixed costs to be $0.34 for every cup of coffee it sells given annual sales of 212,000 cups. The sales price is $1.49 per cup while the variable cost per cup is $0.63. How many cups of coffee must it sell to bre..

  How the composition of the principal and interest components

Explain how the composition of the principal and interest components of a fixed-rate mortgage change over the life of the mortgage. What are the implications of this change?

  Compute the total tax liability

Compute the total tax liability, the average tax rate, and the marginal tax rate for the following corporation: $1,000,000 in taxable income; 15% tax up to $50,000, 25% up to $75,000, 34% up to $100,000, 39% over $100,000

  Computation of value of the bond

Computation of value of the bond and What can you conclude about the relationship between yield to maturity and holding period returns

  Task background in this weekrsquos discussion you learned

task background in this weekrsquos discussion you learned how to construct probability distributions and graph them.

  Finding present value of two bank

Assume you've two bank accounts, one called Account A and another Account B. Account A will be worth $4,700.00 in one year. Account B will be worth $7,900.00 in two years. Both accounts earn 3.8% interest. What is the present value of each of thes..

  What is the annual cost now

Using a week (7 days) as a base period, round the orders to nearest power of 2. If you charge the fixed trucking fee only once for deliveries that coincide what is the annual cost now?

  Find the option price using a replicating portfolio

If we are given a stock (price 1)that we are allowed to trade halfway with probability .5 in which the halfway maturities are 2 and .5, and then the full maturities are 4,1,1,.25 with probability of .5 for each again.

  Effectiveness of monetary policy actions

Recent years banks have  exposed  a greater tendency to loan out available funds rather than invest them. Determine impact, if any, does this have on the effectiveness of monetary policy actions taken by the Federal Reserve?

  Would this expansion create value for brook enterprises

Would this expansion create value for Brook Enterprises? Perform a NPV (net present value) analysis.

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