User Account

All Pages

Appropriate cost of capital

Assignment Help Finance Basics
Reference no: EM131152647

You are offered an investment with returns of $ 1,790 in year 1, $ 4,676 in year 2, and $ 5,525 in year 3. The investment will cost you $ 5,919 today. If the appropriate Cost of Capital (quoted interest rate) is 6.8 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01.

Reference no: EM131152647

Questions Cloud

Calculate the profit of the year : calculate. - The profit of the year -  the shareholders equity at the end of the year - describe the four main categories of internal control for information system.
Positive correlation between the project : The risk of a project will be higher, if the project's variability in cash flows is ______, and the positive correlation between the project's cash flow and the MNC's cash flow is ______ ". If you were listening to the conversation, what would yo..
What style comes easiest for you to aply in a warew house : Of the three leadership styles (authoritarian, democratic, and laissez-faire), what style comes easiest for you to aply in a warew house
Explain if individual companies product or service oriented : In an essay, describe these 3 different companies, Cold Stone Ice Cream, Coca Cola, State Farm Insurance. Explain if the individual companies are product or service oriented? Check their websites and summarize their product descriptions.
Appropriate cost of capital : You are offered an investment with returns of $ 1,790 in year 1, $ 4,676 in year 2, and $ 5,525 in year 3. The investment will cost you $ 5,919 today. If the appropriate Cost of Capital (quoted interest rate) is 6.8 %, what is the Profitability In..
Current value of share of lazy days fishing supplies : Question 1) lazy days fishing supplies is predicting dividend of $4.00 and $5.00 in the next two years. After that , Lazy days is predicting that growth will level off at 3% indefinitely. The rate expected in the market place for investment simil..
How does organizational theory describe yahoo : How does organizational theory describe Yahoo? What best describes its approach to managing people--Classical approaches, Humanistic, etc
Assuming a compound annual return : Carmine wishes to save $1,100,000 for retirement, which is 30 years away. How much must be saved at the end of each year to reach this goal, assuming a compound annual return of 7%?
Planning to deposit : You are planning to deposit $1500 at the end of each year for the next 10 years. If your bank pays 7% interest per annum on your account, how much money will you have at the end of the ten years?

Reviews

Write a Review

Finance Basics Questions & Answers

  What balance sheet and income statement items might lead

If you applied the DuPont equation to both firms, would you expect the three components to be the same for each company? If not, explain what balance sheet and income statement items might lead to the component differences.

  Show the entry for the sale of investments by the jan 2,2013

As of January 1, 2013, the Baber School District notifies the pool it needs to withdraw $1,000,000 cash from the pool, so the pool management sells investments to obtain $700,000 cash. The investments sold had been carried in the Investment Trust Fun..

  Whitts bbq would like to issue some semiannual coupon bonds

whitts bbq would like to issue some semiannual coupon bonds at par. comparable bonds have a current yield of 9.16

  Te cash is available in 2 days on average 1 calculate the

float measurement. on a typical day abc company writes checks totaling 3000. these checks clear in 7 days.

  How would you prove your opinion

On average, which factor do you think contributes more to the nominal risk-free rate, inflation or the real rate? How would you prove your opinion?

  If the firms required rate of return is 12 percent what is

if the firms required rate of return is 12 percent what is the modified internal rate of return mirr for the following

  Calculate the irr and npv for each project

calculate the IRR and NPV for each project. Tim wants to convince the Board that the IRR measure can be misleading when choosing between mutually exclusive alternatives.

  Determine the cash conversion cycle for each year

Using year-end data, calculate the inventory-to-sale conversion period, the saleto- cash conversion period, and the purchase-to-payment conversion period for 2007 and 2008. Determine the cash conversion cycle for each year and discuss the changes tha..

  Investment gain in the course of the month

This right will cost them $1 per share, and the right is good for the next month. A month later, the shares are selling for $35. Assuming that the owner of the calls exercises her right to buy your shares, how much was your total investment gain..

  What would the equal monthly payments be

The terms of the loan require that your friend make 12 equal end-of-month payments each year for 6 years, and then an additional final (balloon) payment of $5,500 at the end of the last month. What would the equal monthly payments be?

  Computing present worth of future payments

Your parents are giving you $500 a month for five years while you attend college to earn both a bachelor's and a master's degree. Provide financial calculator inputs and check answer.

  Different definitions of debt in ratio analysis

1. Discuss the different definitions of debt in ratio analysis. 2. Why do people view having too much debt as risky? If you were interested in determining whether a company had too much debt, what measure would you use? Why? How much debt do you t..

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