Compute the present value of each of the cash flows

Assignment Help Financial Accounting
Reference no: EM132609123

Question 1: Compute the present value of each of the following cash flows using a discount rate of 13 per cent:

(i) Rs 20,000 cash outflow immediately.

(ii) Rs 6,000 cash inflow one year from now.

(iii) Rs 6,000 cash inflow two years from now.

(iv) Rs 4,000 cash outflow three years from now.

(v) Rs 7,000 cash inflow three years from now.

(vi) Rs 3,000 cash inflow four years from now.

(vii) Rs 4,000 cash inflow at the end of each of the next five years

Reference no: EM132609123

Questions Cloud

Determine the monthly payment on a year level payment : Determine the monthly payment on a 30-year level payment mortgage assuming an annual mortgage rate of 5% and an initial mortgage principal of $400,000.
Calculate the impact of different types of errors : Calculate the impact of different types of errors on the statement of profit or loss and statement of financial position using self constructed examples
ROI is one of most common financial measuring tools : ROI is one of the most common financial measuring tools. Being able to calculate the ROI or expected ROI allows us to make the best decisions
What biblical principles can you think of : The need for network security grows each and every day. What biblical principles can you think of that could realistically decrease this need?
Compute the present value of each of the cash flows : Compute the present value of each of the cash flows using a discount rate of 13 per cent. Rs 6,000 cash inflow one year from now.
Explain the accounting treatments accordingly : Plant & Equipment'or MFRS 138 Intangible Asset are applicable for each of the incured costs above and explain the accounting treatments accordingly.
Design a simple network and make a drawing of the network : Design a simple network and make a drawing of the network. Include the following in your design: defense-in-depth, hardening systems, encryption.
Advise client on the measurement method of the asset : Advise your client on the measurement method of the asset held under finance leaseand the monthly payments from operating leases.
Distinguish between fundamental and enhancing qualitative : Distinguish between the fundamental and enhancing qualitative characteristics offinancial information and explain why faithful representation is important

Reviews

Write a Review

Financial Accounting Questions & Answers

  What was the amount of cash received from customers

The following information is taken from the accounts of Birmingham Ltd for year ended 30 June 2016. What was the amount of cash received from customers?

  Mccollum corporation

During its first year of operations, the McCollum Corporation entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue 130 million common shares, $1 par per share. Required: Prepare the appropr..

  Is in the best interest of geneva corporation for transfer

Is it in the best interest of Geneva Corporation for this transfer to take place? How much could the company gain/lose from this transfer?

  What is the market price per share

What is the market price per share? If interest rates in general should rise so that the required return becomes 12 percent, what will happen to the market

  Illustrate what is impact of this transaction on net open

XYZ Company accepted a national credit card for a $5,000 purchase. The cost of the goods sold is $4,000. The credit card company charges a 3% fee. Illustrate what is the impact of this transaction on net operating income?

  Gundy corporation produces area rugs

Gundy Corporation produces area rugs. The following per unit cost information is available: direct materials $16, direct labor $5, variable manufacturing overhead $6,

  Are able to impact to financial statement for transaction

Are able to provide the impact to the financial statement for this transaction? A company pays $12 cash to satisfy a warranty claim.

  Record the journal entries at maturity

Record the journal entries at maturity. Record the preceding transactions for Lender Company assuming it uses the 360 day convention.

  Contract to build custom equipment

On January 15, 2014, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specified a delivery date of March 1. The equipment was not delivered until March 31.

  Journalize transactions using a perpetual inventory system

Journalize transactions using a perpetual inventory system - Prepare an adjusted trial balance and prepare an income statement and a retained earnings statement for December and a classified balance sheet at December31

  Using the link-chain method

An evaluation of Bryce's Bookstore's inventory was performed in Year 2. It produced the following results: The cost index in Year 1 was 105. Using the link-chain method, compute Bryce's Bookstore's cost index for Year 2. Round your answer to the near..

  How ownership of the delivery equipment will transfer

How Ownership of the delivery equipment will transfer to Warren Corporation at the end of the lease term. Warren Corporation signs an agreement on January 2.

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