Find the present value of each one of the cash flows

Assignment Help Financial Management
Reference no: EM131013322

Find the present value of each one of the following cash flows. Assume that an 8% interest rate is appropriate for all discounting. Show how you would do this on your financial calculator as well as by hand.

$170,000 at the end of 5 years.

$11,200 at the end of each year forever

$11,200 at the beginning of each year forever

$6,500 at the end of the ear increasing by 4% a year forever

Reference no: EM131013322

Questions Cloud

Explain the theory of contingency leadership : What are the implications for motivation of Hofstede's research findings on the dimensions of power distance, uncertainty avoidance, individualism, and masculinity?
The market porfolio and the risk-free asset : You are given the following information concerning three portfolios, the market porfolio, and the risk-free asset: Portfolio X 12% Rp 29% Op 1.25 Bp Portfolio Y 11% Rp 24% Op 1.10% Bp Portfolio Z 8% Op 14% Op .75 Bp Market 10 Rp 19 Op 1.00 Bp Risk-fr..
What is the present value of the stream of payments : Suppose that you will receive the annual payments of 10000 for a period of 10 years. The first payment will be made 4 years from now. if the interest rate is 5% what is the present value of the stream of payments.
Calculate the revised material handling costs : Calculate the material handling rate that would have been used by Eloise Smith's predecessor at East Coast Marine - calculate the revised material handling costs to be allocated on a per purchase order basis.
Find the present value of each one of the cash flows : Find the present value of each one of the following cash flows. Assume that an 8% interest rate is appropriate for all discounting. Show how you would do this on your financial calculator as well as by hand.
About the retirement fund : Your aunt and uncle have asked your help in setting up their estate plan. They currently have $3,000,000 in their retirement fund. They wish to know the maximum amount that they can withdraw each month over a twenty-five year period and still have $8..
How did they and their families adapt : Interview one or more managers who have held positions over- seas. Try to find a man and a woman. Ask them about their experiences both in the working environment and in the foreign country generally. How did they and their families adapt?
What are the strategic implications of changing its strategy : Should JC Penney pursue a different generic strategy for the different markets it competes in? What are the strategic implications of changing its strategy
What is a virtual global management team : What is a virtual global management team? How do the members interact? Discuss the advantages and the challenges faced by these teams. Give some suggestions as to how to maximize the effectiveness of virtual teams across borders.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the projected dividend

Momsen Corp. is experiencing rapid growth. Dividends are expected to grow at 26 percent per year during the next three years, 16 percent over the following year, and then 4 percent per year indefinitely. The required return on this stock is 10 percen..

  Corporate bonds of various credit ratings

Luther Industries needs to raise $25 million to fund a new office complex. The company plans on issuing ten-year bonds with a face value of $1000 and a coupon rate of 7.0% (annual payments). The following table summarizes the YTM for similar ten-year..

  What is the days sales outstanding

McDowell Industries sells on terms of 3/10, net 20. Total sales for the year are $1,256,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 80 days after their purchases. What is the days' sales outs..

  Inventory-working capital to expand into new market

Imagine A Better Company LLC, which has six members. Five of the shareholders own 7 percent each. Jacinta owns the remaining portion of the company. A Better Company needs $250,000 for equipment, inventory, and working capital to expand into a new ma..

  Internal rate of return equals the required return

Which one of the following will occur when the internal rate of return equals the required return? Explain why?

  Sales are expected to increase

Broussard Skateboard's sales are expected to increase by 25% from $7.8 million in 2013 to $9.75 million in 2014. Its assets totaled $4 million at the end of 2013. Baxter is already at full capacity, so its assets must grow at the same rate as project..

  Planning for retirement

Your mom is planning for retirement. She wants to receive a stream of 26 end of year annual payments in retirement that grow at a rate of 3% each year. She wants the beginning payment received 1 year after retiring to be $28,000. If interest rates ar..

  Compare and contrast the main policies

Compare and contrast the main policies of the US Federal Reserve and the European Central Bank over the last 10 years. Based on these policies, identify and contrast the main priorities of these institutions. How do these policies affect exchange rat..

  Should cleto construct the plant then

How would your answer change if the value of the cedi was expected to remain unchanged from its current value of 8700 cedi per euro over the course of the three years? Should Cleto construct the plant then?

  What is the firms value of operations in millions

Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of..

  What is the comparable salary today-inflation rate

Suppose you have insurance agent offers you a policy that will provide you with a yearly income of $50,000 in 30 years. What is the comparable salary today, assuming an inflation rate of 6%? Show all work.

  What is annualized holding period return

John purchased 100 shares of Black Forest Inc. stock at a price of $153.96 three months ago. He sold all stocks today for $157.67. During this period the stock paid dividends of $5.04 per share. What is John’s annualized holding period return (annual..

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