Draw cash flow diagram

Assignment Help Financial Management
Reference no: EM13805982

Please draw cash flow diagram

Draw and solve the Cash Flow Diagram for Future Value F. This is a 10 year Cash Flow, and interest rate is a compounded 7%).

$10,000.00 is Invested Today for a piece of testing equipment

$2000.00 is Earned as Annual Income from end of years 4-10 through use of this test equipment

$400.00 is the Annual Maintenance Cost of the testing equipment for all 10 years

Salvage Value (income from selling the test equipment) at the end of the 10th year is $2500.00

There is an Arithmetic Gradient Income from years 1-10 with a Base Annuity of $500.00 and an Annual Gradient G of +$50.00 (years 2-10)

There is a mortgage cost from years 1-10 with a starting amount of $1000, decreasing by $25 each year (years 2-10).

What is the Future Value F of this Engineering Cash Flow Investment?

Reference no: EM13805982

Questions Cloud

Online instructional components : Online Instructional Components
New concrete mixer to replace an inefficient older model : Auburn Concrete Inc. is considering the purchase of a new concrete mixer to replace an inefficient older model that is completely worn out. If purchased, the new machine will cost $90,000 and is expected to generate savings of $40,000 per year for fi..
What is a realistic amount your friend might expect to spend : What is a realistic amount your friend might expect to spend, both at the time of initial purchase and over the next four years of ownership? Use catalogs, computer magazines, or the Internet to obtain current price information
The value of the sample test statistic related issues : What is the value of the sample test statistic? (Round your answer to two decimal places.)
Draw cash flow diagram : Draw and solve the Cash Flow Diagram for Future Value F. This is a 10 year Cash Flow, and interest rate is a compounded 7%). What is the Future Value F of this Engineering Cash Flow Investment?
Analyze the compatibility of objectives and tactics : Analyze the compatibility of objectives, tactics, and targets of one group.
What is the initial weighted average cost of capital : Marginal cost of capital (LO5) The McGee Corporation finds it is necessary to determine its marginal cost of capital. McGee’s current capital structure calls for 40 percent debt, 5 percent preferred stock, and 55 percent common equity. What is the in..
Portfolio expected return : You own a portfolio that is 30 percent invested in Stock X, 25 percent in Stock Y, and 45 percent in Stock Z. The expected returns on these three stocks are 9 percent, 18 percent, and 14 percent, respectively. What is the expected return on the portf..
Philosophy - business ethics : Philosophy - Business Ethics

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value of fun toys equity

Fun Toy Corporation estimates that there is 25% chance of a recession economy next year, a 50% chance of a normal economy next year, and a 25% chance of a boom economy next year. The corporation will exist until the end of next year and then it will ..

  Value of stock according to the dividend discount model

Stock A has an expected dividend of $1.30 payable as of two years from now (i.e. it is not expected to pay any dividends over the first two years). After that, dividends are expected to grow at an annual rate of 1% forever. If the discount rate is 5%..

  About the spot exchange rate

Assume the spot exchange rate between South Korean Won (?) and Japanese Yen (¥) at 9.4 ?/¥, the spot exchange rate between Thai Bhat and Yen is 3.3 ¥/Bhat and that you can buy or sell either currency at the quoted exchange rate (zero bid-offer spread..

  Suppose the returns on long-term government bonds

Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.3 percent and a standard deviation of 9 percent.

  Investors funds should be invested in the risky portfolio

An investor wants to form a two asset portfolio consisting of Treasury bills with a return of 2.5% and a risky portfolio with an expected return of 15.2% and a standard deviation of 16%. The investor wants the expected return of the two asset portfol..

  Estimate the historical standard deviation

Estimate the historical standard deviation of google and compare the implied standard deviation with the historical standard deviation.

  Comments of the key players

As the project manager, the project team is looking to you for direction on each of these issues. Review the comments of the key players, consult the grading rubric below and then answer the following questions.

  Discuss basic economic data

Discuss basic economic data, how to access it and how it can be used to make decisions and plan for the future.

  Situations will affect the demand curve

Evaluate how the following situations will affect the demand curve for iPods. Income statistics show that income of 18-25-year-olds have increased by 10 percent over the last year.

  What is the best estimate of the current stock price

A company paid $1.65 dividend yesterday. Its dividend growth rate is expected to be constant at 22.40% for 2 years, after which dividends are expected to grow at a rate of 6.85% forever. Its required return (rs) is 10.55%. What is the best estimate o..

  Calculate the value of a right to the holder of that right

Modern Times ltd has 15,000,000 shares outstanding. It wishes to issue 3,000,000 new shares via a rights issue. If the current stock price is 50 and the subscription price is 45 per share, calculate the value of a right to the holder of that right.

  Why financial institutions are highly regulated

Why financial institutions are highly regulated in all countries?

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