Calculating present values

Assignment Help Financial Management
Reference no: EM13889336

Calculating Present Values [LO1] An investment will pay you $43,000 in 10 years. If the appropriate discount rate is 7 percent compounded daily, what is the present value?

Reference no: EM13889336

Questions Cloud

Analyze data given in .sav file and writing report on result : Use the ustudy.sav file. This time, consider that you collected data only on ACADRNK, YRSPHD, SALARY, and PUBLCTN from the 20 faculty. The purpose of your analysis is to group this faculty into separate clusters based on the data you have.
Write paper on the theater : Write paper on the theater
Electronic medical records versus personal health records : Electronic Medical Records Versus Personal Health Records
Adelie enterprises is exploring a new service : 1.Adelie Enterprises is exploring a new service to provide weekly delivery of grocery items to homes in the greater Greenwood area.
Calculating present values : Calculating Present Values [LO1] An investment will pay you $43,000 in 10 years. If the appropriate discount rate is 7 percent compounded daily, what is the present value?
Presentation on native-american literature : Submit a presentation on Native-American literature. You may choose ONE of the stories below.. "The Shawl" and "The Years of My Birth"
Present value and multiple cash flows : Present Value and Multiple Cash Flows [LO1] Wainright Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18 percent? ..
What is the present value of your windfall : Calculating Present Values [LO2] You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 80 years from ..
Compute the future value : Calculating Future Values [LO1] For each of the following, compute the future value:

Reviews

Write a Review

Financial Management Questions & Answers

  What is the price of the bond

A bond with 20 years until maturity has a coupon rate of 7.4 percent and a yield to maturity of 7.5 percent. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your resp..

  Compute the balance in your margin account at the end

You are short 27 gasoline futures contracts, established at an initial settle price of $2.505 per gallon, where each contract represents 42,000 gallons. Compute the balance in your margin account at the end of each of the four trading days, and compu..

  Based on effective interest rates

The First City Bank pays 6.6 percent interest, compounded annually, on time deposits. The Second City Bank pays 6.5 percent interest, compounded monthly. Based on effective interest rates, in which bank would you prefer to deposit your money?

  Assume the net working capital will be recovered at the end

Kinky Copies may buy a high-volume copier. The machine costs $210,000 and will be depreciated straight-line over 5 years to a salvage value of $38,000. Kinky anticipates that the machine actually can be sold in 5 years for $49,000. The firm’s margina..

  What is the value of gold coasts stock

Gold Coast Health System just paid an annual dividend of $1.50, which is expected to grow at a constant rate of 5 percent per year. If the current required rate of return is 15 percent, what is the value of Gold Coast's stock?

  Opportunity cost-calculate the net present value

Calculate the net present value (NPV) for the following twenty-year projects. Comment on the acceptability of each. Assume that the firm has an opportunity cost of 14%.

  Invested in accounts receivable

Your firm has $45 million invested in accounts receivable, which is 90 days of net revenue. If this could be reduced to 50 days, what annual increase would your firm realize if the increase in cash could be invested at 7.5%?

  Fama-french three-factor model

A financial analyst has modelled the stock of the company using a Fama-French three-factor model. The risk-free rate is 5%; the market return is 10%; the return on the SMB portfolio (rSMB) is 3.8%; and the return on the HML portfolio (rHML) is 4.7%. ..

  What will be amount of interest accumulated at the time

Emilys current salary is $85,000 per year, and she is planning to retire 24 years from now. She anticipates that her annual salary will increase by$1,000 each year ($85,000 the first year, to $86,000 the second year, $87,000 the third year, and so fo..

  What is the terminal or horizon-value of operation

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100.000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company’s weighted average cost of c..

  Expected future dividend growth rate

Two investors are evaluating Apple's stock for possible purchase. They agree on the expected value of D1, and on the expected future dividend growth rate. Silverado Mining Company's ore reserves are being depleted, so its sales are falling. Also, bec..

  Dividends are expected to grow at constant rate

The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.10 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 11 percent on the company's stock. What ..

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