Find the present value of the cash flow streams

Assignment Help Financial Management
Reference no: EM13805837

Find the present value of the following cash flow streams. The appropriate interest rate is 8%.

Year Cash Stream A Cash Stream B

1 $100 $300

2 $400 $400

3 $400 $400

4 $400 $400

5 $300 $100

Reference no: EM13805837

Questions Cloud

Purchasing one of the following two pieces of equipment : A Company is considering purchasing one of the following two pieces of equipment. Equipment A has a purchase price of $3 million and will cost $80,000, pre-tax, to operate on an annual basis. This equipment will have to be replaced every 7 years and ..
Corporate contributions to political campaigns : Corporate contributions to political campaigns
Are they autotrophs or heterotrophs : Where do you think fungi fit into a food chain? Are they autotrophs or heterotrophs? Explain your answer using scientific reasoning and data
Sensitivity of the NPV to the price and quantity : Gilla Golf is evaluating a new golf club. The clubs will sell for $875 per set and have a variable cost of $430 per set. The company has spent $150,000 for a marketing study that determined the company will sell 60,000 sets per year for seven years. ..
Find the present value of the cash flow streams : Find the present value of the following cash flow streams. The appropriate interest rate is 8%.
Considering the risk around the cost point estimate : Considering the risk around the cost point estimate, what type of contract will generally be used for the contracted effort?
Cost plus and fixed price contracts to compute final price : The correct terms used in cost plus and fixed price contracts to compute final price are:
Examine relevant consumer behavior for your target market : Develop a branding strategy for your product that covers the brand name, logo, slogan, and at least one (1) brand extension -  Examine the relevant consumer behavior for your target market.
Standard deviation of a stocks returns : If the standard deviation of a stock's returns over the last 12 quarters is 4 percent, and if there is no perceived change in volatility, there is a ____ percent probability that the stock's returns will be within ____ percentage points of the expect..

Reviews

Write a Review

Financial Management Questions & Answers

  Originally repaired radios and other household appliances

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other..

  Compute the debt ratio and equity ratio

Compute the gross margin ratio and net profit margin ratio, compare the current ratio and acid-test ratio and compute the debt ratio and equity ratio.

  What are the balances in the three stockholders equity

On October 1st Martin Corp have the following balance in stockholders’ equity. What are the balances in the three stockholders equity accounts after the new shares have been distributed? What, if any, is the new par value?

  What are your thoughts-how does aging affect your budgets

Create aging schedule that compares the 3 payers. What are your thoughts? How does this aging affect your budgets?

  Total real return on the investment

You bought one of Bergen Manufacturing Co.’s 7.8 percent coupon bonds one year ago for $1,061. These bonds make annual payments and mature twelve years from now. Suppose you decide to sell your bonds today when the required return on the bonds is 4.5..

  Annual payments starting one year after the loan is made

You borrow $5,000 at 10% per year and will pay off the loan in 3 equal annual payments starting one year after the loan is made. The end-of-year payments are $2010.57. Which of the following is true for your payment at the end of year 2?

  Initial cost probability net revenue probability

A project has a life of 10 years, and no salvage value. The firm uses an interest rate of 12% to evaluate projects. This project has an uncertain initial cost and net revenue as below. A. Joint probability distribution for cost and net revenue B.

  What is the cost of equity for this firm

The common stock of Contemporary Interiors has a beta of 1.65 and a standard deviation of 27.4 percent. The market rate of return is 13.2 percent and the risk-free rate is 4.8 percent. What is the cost of equity for this firm?

  What will be the opportunity cost of the machine

In your new project, you are going to use a machine which has been put into operation for a couple of years. The original investment on these machines was $120,000 and cumulative depreciation is $80,000. If you sell it at its fair market value now, y..

  Types of costs included in the marketing budget

Let's discuss the types of costs included in the marketing budget. Which do you think is the most difficult to budget for and why?

  Preoccupied with other issues and is slow to act

The White House sees a recession on the horizon, but Congress is preoccupied with other issues and is slow to act. This delay is an example of...

  Calculate an average return

You calculate an average return of 10% and a standard deviation of 5%. Assuming the returns are normally distributed, what is the probability that the investment will yield a return of less than 5%?

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