User Account

All Pages

What is the present value of the technology

Assignment Help Finance Basics
Reference no: EM131419426

Growing Perpetuities 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 $210,000, received three years from today. Subsequent annual cash flows will grow at 3 percent, in perpetuity. What is the present value of the technology if the discount rate is 12 percent?

Reference no: EM131419426

Questions Cloud

How much interest will you owe at the end of the first year : Assuming you transfer the $6,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year?
Handi mart convenience store near campus : ollege sophomore Suzy Smart works part-time in the Handi Mart convenience store near campus. The manager at Handi Mart requires that each clerk arrive fifteen minutes prior to the start of the shift so that the clerk going off duty can review the ..
Identify ethical issues that arise in domestic business : identify ethical issues that arise in domestic and global business environments using an understanding of ethical concepts and of legal and business principles
What is the price of the security : Perpetuities A prestigious investment bank designed a new security that pays a quarterly dividend of $3 in perpetuity. The first dividend occurs one quarter from today. What is the price of the security if the stated annual interest rate is 9 perc..
What is the present value of the technology : He anticipates his first annual cash flow from the technology to be $210,000, received three years from today. Subsequent annual cash flows will grow at 3 percent, in perpetuity. What is the present value of the technology if the discount rate is ..
Explore what happens for different numbers of tosses : What if the probability of heads is 0.25? In the Probability applet, set the probability of heads to 0.25. Explore what happens for different numbers of tosses. Summarize what you have learned.
Voluntary sterilizations and forced sterilizations : "The Population Situation," write down your initial personal response to this situation and the proposed policies. After you are finished, mark any important ideas.
Differentiate the policing systems on a worldwide scale : Discuss the impact that cyber crime and technology have had on worldwide justice systems. Differentiate the policing systems on a worldwide scale
Explore what happens for different numbers of tosses : What if the probability of heads is 0.25? In the Probability applet, set the probability of heads to 0.25. Explore what happens for different numbers of tosses. Summarize what you have learned.

Reviews

Write a Review

Finance Basics Questions & Answers

  Details of the conversation

Royal Hotel Inc. orally orders 100 standard sets of sheets from Textile Inc. for a price of $500. Textile immediately sends back a written invoice with the details of the conversation. Royal and Textile

  What an auto worker at general motors makes today?

In January 1914, Henry Ford startled the world by announcing that Ford Motor Company would pay $5 a day to its workers. At the time, $5 was about double what the average auto worker made.

  Bonds make semiannual payments

Harrison Co. issued 16-year bonds one year ago at a coupon rate of 7.2 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.5 percent, what is the current dollar price assuming a $1,000 par value?

  Difference between covariance and correlation

What is the difference between covariance and correlation? If the value is 0.80, interpret it in the context of correlation?

  Concerns with properly controlling flow

Explain this use in your current place of employment or an organization you are familiar with. Describe concerns with properly controlling this flow, including keeping it safe from unauthorized use.

  Options with the same strike price and expiration

On Thursday, Cisco call options with a strike price of $20 and an expiration date in October sold for $0.30. The current price of Cisco is $17.83. How much should put options with the same strike price and expiration date sell for? r = 1% annually..

  What is sensitivity analysis and what is its purpose

Explain how simulation works. What is the value in using a simulation approach and what is sensitivity analysis and what is its purpose?

  What will be standard deviation of the resulting portfolio

The stock and bond portfolios have a correlation of .55. What will be the standard deviation of the resulting portfolio?

  Mill street corporation sells its goods with terms of 410

mill street corporation sells its goods with terms of 410 eom net 60. what is the implicit cost of the trade

  How financial statements articulate

How financial statements articulate

  Find yearly depreciation and straight line for tax purpose

Calculate yearly depreciation, straight line for tax purposes, look this up. There is no salvage value. Calculate: COGS. Do a search on "COGS, Margin, Sales".

  How much could the money supply change

The trading desk at the Federal Reserve sold $100,000,000 in T-bills to the public. If the current reserve requirement is 8.0%, how much could the money supply change?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd