What is the present value of these cash flows

Assignment Help Finance Basics
Reference no: EM13279001

Assume that you will receive $2,000.00 a year in year 1 through 5; $3,000.00 a year in years 6 through 8; and $4,000.00 in year 9. All of the cash flows will be received at the end of the year. If you require a 14% rate of return, what is the present value of these cash flows? Please show calculations.

Reference no: EM13279001

Questions Cloud

State rotational symmetry axes in the staggered conformation : Describe all the symmetry planes in the staggered conformation of ethane. Draw a figure and arrows to show any rotational symmetry axes in the staggered conformation of ethane.
Find the center-frequency gain of single-tuned amplifier : The transistor is biased at 1mA and has ß=100, Cp=10pF, and Cµ=1pF. The transistor load is a resistance of 5kO. Find fo, Q, the 3-dB bandwidth, and the center-frequency gain of this single-tuned amplifier.
What are the portfolio weights of each stock : An investor owns $10,000 of Adobe Systems stock, $15,000 of Dow Chemical, and $25,000 of Office Depot. What are the portfolio weights of each stock?
Human resource professionals must be proactive : Human Resource professionals must be proactive in order to be able to meet all of the challenges of the 21st Century. What are some of the changes to the work force environment that you see looming on the horizon?
What is the present value of these cash flows : Assume that you will receive $2,000.00 a year in year 1 through 5; $3,000.00 a year in years 6 through 8; and $4,000.00 in year 9. All of the cash flows will be received at the end of the year. If you require a 14% rate of return, what is the pres..
Find parameters of steam and pipe : Steam enters a circular pipe at 1600 kPa, 400 oC and 10 m/sec and exits at 1000 kPa and 32 m/sec. find parameters of steam and pipe
Write a sas program that first creates variables : Write a SAS program that first creates three variables: RF, RM, and R. Assign R the value 0.04, RM the value 0.12 and R the value 0.14. Before proceeding, use the video's PROC PRINT procedure to make sure you have done the DATA step correctly.
Derive the ber-bit error rate of a 8-pam system : derive the BER (Bit Error Rate) of a 8-PAM (Pulse Amplitude Modulation) system in an AWGN (Additive White Gaussian Noise) channel.
What will the price be in 6 years : The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.40 per share on its stock. The dividends are expected to grow at a constant rate of 8 percent per year indefinitely.

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute current value of futures position

Compute current value of futures position based on the rate calculated above plus the 2 points.

  Computation of future annual receipts considering inflation

Computation of future annual receipts considering inflation rate and what annual income should he plan to receive in the first year of retirement in order to maintain the purchasing power on $20,000

  Investment to make contributions to employer-s fund

If John suppose his investments would earn 8% annually, and his life expectancy is 80 years, must he invest in his own plan or must he make contributions to his employer's fund?

  What will be the firm weighted average cost of capital

The bond issue has a face value of $550,000 and a market quote of 98.0. The company's tax rate is 32 percent. What is the firm's weighted average cost of capital?

  Risk and return and the capm

Risk and Return and the CAPM.

  What is the market value of this firm

The firm has $10,400 in cash and owes a total of $1,430,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?

  Calculate the investment amount

Melissa Gould wants to invest today in order to assure adequate funds for her son's college education. She estimates that her son will need $20,000 at the end of 18 years;

  What is fama debt-equity ratio

Fama's Llamas has a weighted average cost of capital of 12.5 percent. The company's cost of equity is 17 percent, and its cost of debt is 8.5 percent. The tax rate is 34 percent.

  What does the beta of the second stock have to be

You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. One stock has a beta of 1.92. What does the beta of the second stock have to be if you want the portfolio to have a beta of 0.76?

  Calculate the minimum cash flow

Calculate the minimum cash flow that could be received at the end of year three to make the following project acceptable. Initial cost is $100,000; cash flows at end of years one and two is $35,000.

  Interest compounded monthly

The Design Team just decided to save $1,500 a month for next five years as a safety net for recessionary periods. What would today's deposit amount have to be if the firm opted for one lump sum deposit today that would yield same amount of savings ..

  How many futures contract does he have to purchase

The beta of the stock is 1.4. How many futures contract does he have to purchase? If it's a short position, report a negative number.

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