Find the net present value for series of future cash flows

Assignment Help Financial Management
Reference no: EM13810520

Find the net present value (NPV) for the following series of future cash flows, assuming the company’s cost of capital is 10.19 percent. The initial outlay is $471,448.

Year 1: 191,637

Year 2: 128,236

Year 3: 161,255

Year 4: 138,369

Year 5: 190,517

Round the answer to two decimal places in percentage form.

Reference no: EM13810520

Questions Cloud

Incremental cash inflow from proposed credit policy switch : A supplier grants your firm credit terms of 3/10, net 50. What is the effective annual rate of the discount if the firm purchases $1,000 worth of merchandise? What is the incremental cash inflow from the proposed credit policy switch?
Analyze the role of commercial terms and conditions : Given a claim on a major contract, analyze the role of commercial terms and conditions, the Uniform Commercial Code (UCC), and applicable government regulations on the outcome.
Implement six sigma across the entire organization : Do you think that Amazon should implement Six Sigma across the entire organization or should it concentrate on certain departments only?
What are the macaulay duration and modi?ed duration : A Treasury bond that settles on October 18, 2013, matures on March 30, 2032. The coupon rate is 5.30 percent and the bond has a 4.45 yield to maturity. What are the Macaulay duration and modi?ed duration?
Find the net present value for series of future cash flows : Find the net present value (NPV) for the following series of future cash flows, assuming the company’s cost of capital is 10.19 percent. The initial outlay is $471,448.
Write a memo outlining supply chain logistics systems : As a supply chain manager, you have been asked by senior management to write a memo outlining supply chain logistics systems. The organization is considering a new approach to their logistics system analyses and is looking for your input.
What is the firms cost of equity : Martin Industries just paid an annual dividend of $2.30 a share. The market price of the stock is $28.90 and the growth rate is 5.8 percent. What is the firm's cost of equity?
Define the market for reusable fruit infused water bottles : Factors that affect demand, supply, and equilibrium prices in the market in which the reusable fruit infused water bottles operates: Define the market for reusable fruit infused water bottles
Results of exchange rate changes : Early in September 1983, it took 255 Japanese yen to equal $1. Nearly 28 years later, in August 2011, that exchange rate had fallen to 115 yen to $1. Assume that the price of a Japanese-manufactured automobile was $11,000 in September 1983 and that i..

Reviews

Write a Review

Financial Management Questions & Answers

  Common stock value-variable growth model

Newman Manufacturing is considering a cash purchase of stock of Grips Tool. During the year completed, Grips earned $4.25 per share and paid cash dividends of $2.55 per share (D0=$2.55). Grips' earnings and dividends are expected to grow at 25% per y..

  Companies for building up cash and not paying dividends

Why did Microsoft decide in 2004 to double its cash dividend and buy back up to $30 billion of the company's stock over the next four years?

  What is the exchange rate between the rupee and pound

Assume the exchange rate between US dollar and Indian Rupee is 60 Rupees = $1, and exchange rate between dollar and British pound is 1 Pound = $1.50. What is the exchange rate between the Rupee and pound?

  Compute income taxes owed for a firm

Compute income taxes owed for a firm with the following data:

  How would you calculate their net worth

Fatimah and Ahmad, both 30 years old, own a house worth $120,000 and have a yearly income of $50,000, monetary assets of $15,000, two cars worth $30,000, and furniture worth $10,000. The house has a $100,000 mortgage, they have college loans of $15,0..

  Consider a project that has expected net cash flows

Consider a project that has expected Net Cash Flows of $25,000 in each of the 5 years of the project. The project has a Net Investment of $80,000. Given this, what is the IRR?

  Expected cash inflows-what is the projects payback

Project K costs $50,000, its expected cash inflows are $14,000 per year for 9 years, and its WACC is 12%. What is the project's payback?  Project K costs $40,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 11%. What is..

  State highway department is planning the construction

A state highway department is planning the construction of a toll road. Construction cost will be $200M (at period=year 0). Annual maintenance is estimated to be $1M every year and forever. In addition, every 10 years in perpetuity (=forever), a majo..

  What is the purpose and importance of financial analysis

A company’s financial statements consist of the balance sheet, income statement, and statement of cash flows. Describe what each statement tells us and their limitations. What is the purpose and importance of financial analysis?

  Different management training positions

Suppose there are 8 different management training positions to be assigned to 8 employees in the company's junior management training program. In how many different ways can the 8 individuals be assigned the 8 different positions?

  Defines the term credit scoring

Which one of the following best defines the term credit scoring?

  Find the normal distribution with mean

Over the last year the rates of return on these corporate stocks followed a normal distribution with mean 12.2% and standard deviation 7.2%.

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