Determine the present value now of an investment

Assignment Help Financial Management
Reference no: EM13907576

Determine the present value now of an investment of $3,000 made one year from now and additional $3,000 made 2 years from now if the annual discount rate is 4%

Reference no: EM13907576

Questions Cloud

Defines the value of a firm : Which of the following defines the value of a firm?
Compute return on investment for the year : For a recent year LOreal reported operating profit of 3,385 (in millions) for its Cosmetics division.
Depreciated straight-line to zero over eight-year tax life : Consider an asset that costs $664,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $178,000. If the relevant tax rate is 35..
Compute triangle area : Write a program with a form that contains three labels & text boxes (Base, Height & Area) in addition to a button labeled compute Triangle Area. The user must enter the base and height to find the area. (Triangle Area = 0. 5base x Height)
Determine the present value now of an investment : Determine the present value now of an investment of $3,000 made one year from now and additional $3,000 made 2 years from now if the annual discount rate is 4%
Voting rights to management group running general electric : Jacques Smith holds 1,000 shares of General Electric’s (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Jacques doesn’t plan to attend. Jacques did not sell his shares but gave his voting rights to the..
Define the design and layout : The final project is a web site. You can choose any appropriate topic of the website.  Writing a proposal keep in mind the following requirements for the final project
Use this information to allocate each of the three indirect : Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month, the four departments incurred three shared indirect expenses.
What tools you would use to build plan : If you have one, review your Lifelong Learning/Vision Achievement Plan that you created in the Total Professional Advantage 2.0® Seminar. If you have not used TPA and don't have an equivalent plan, include content on how you might develop a personal ..

Reviews

Write a Review

Financial Management Questions & Answers

  Yield to maturity remains unchanged

A bond has a par value of $1,000, a time to maturity of 20 years, and a coupon rate of 7.20% with interest paid annually. If the current market price is $720, what will be the approximate capital gain of this bond over the next year if its yield to m..

  Municipal bond is currently priced to yield

A 5.5% 20 year municipal bond is currently priced to yield 7.2%. For a taxpayer in the 33% marginal tax bracket , this bond would offer an equivalent taxable yield of what?

  Explain the concept executive stock options

Explain the concept ‘executive stock options'. What are the advantages and disadvantages of ‘executive stock options'? Students are strongly urged to read reviewed journal articles and provide at least five academic journal articles in the referen..

  What is the terminal cash flow

Kirksville Company is considering a new assembly line to replace the existing assembly line. The assembly line would require using a parcel of land that cost $800,000 three years ago. What is the initial outlay associated with this project? What is t..

  What is your return rate in one year

Last year, you purchased a $1,000 par value bond with a 7.5% annual coupon and a 20-year maturity. At the time of the purchase, it had an expected YTM of 8%. After receiving the coupon, you sold the bond today for $930. What is your return rate in on..

  What are the portfolio weights

Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table below. What does the market portfolio consist of 9 what are the portfolio weights)?

  Forecast broussards additional funds needed for coming year

Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2013 to $9.2 million in 2014. Its assets totaled $5 million at the end of 2013. Broussard is already at full capacity, so its assets most grow at the same rate as project..

  What is the expected capital gain yield

The next dividend payment by Wyatt, Inc., will be $2.80 per share. The dividends are anticipated to maintain a growth rate of 7.25 percent, forever. Assume the stock currently sells for $49.20 per share. What is the dividend Yield? What is the expect..

  Deployment specialists pays current dividend

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 20% for two years and then at 4% thereafter. If the required return for Deployment Specialists is 8.5%, what is the intrinsic value of Deployment Specialists sto..

  Money market investments are pure discount securities

Interest on money market investments are pure discount securities. These securities are often quoted on a discount basis.  Briefly describe what “pure discount security” means. Suppose you were to by a taxable bond yielding 5.32% and a non-taxable bo..

  The time-weighted return of the account

On 1/1/14, I deposit $20,000 into my account. On 8/22/14, my account is worth $23,000; I withdraw/deposit M into/from the account. On 12/31/14, my account is worth $24,000. The time-weighted return of the account in 2014 is equal to 23.3294%. Calcula..

  What is the amount a person would have to deposit

What is the amount a person would have to deposit today to be able to take out $5000 a year for 10 years from an account earning 8 percent annually?

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