Present and future values of a cash flow stream

Assignment Help Financial Management
Reference no: EM131012117

Present and future values of a cash flow stream

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $500 at the end of Year 6.

If other investments of equal risk earn 4% annually, what is its present value? Round your answer to the nearest cent.

If other investments of equal risk earn 4% annually, what is its future value? Round your answer to the nearest cent.

Reference no: EM131012117

Questions Cloud

Discuss instantiating a thread in java : What methods are available for managing threads & how do we use them?
Compare two recent smart devices in terms of graphics- sound : Compare two recent Smart Devices in terms of graphics, sound, video,software and hardware capabilities. You also need to include some images or illustration as examples of such features.Note that you need to reference all your resources, and choos..
Determine whether these functions are linearly independent : Determine whether these functions are linearly independent or linearly dependent. Show that the Wronskian W(x) = W[v1, v2] exists and calculate its value on the interval (I).
Compare the two sides of the gun control debate : Compare and contrast the two sides of the gun control debate. Discuss the Chambliss study on the saints and the roughnecks and explain the social impact of labeling
Present and future values of a cash flow stream : An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 4% annually, what is its present value?
Discuss relevant anatomy : Discuss relevant anatomy, pathology and plain film imaging appearances, treatment and possible complications that might occur - List possible causes for his symptoms and discuss relevant anatomy, pathology and plain film imaging appearances, treatm..
What annual interest rate must they earn to reach their goal : Finding the required interest rate Your parents will retire in 28 years. They currently have $280,000, and they think they will need $2,150,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any ..
What is the current share price : Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next seven years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $15.50 per share 8 years..
What does bill believe the inflation rate : An investment offers a total return of 14 percent over the coming year. Bill Bernanke thinks the total real return on this investment will be only 8.1 percent. What does Bill believe the inflation rate will be over the next year?

Reviews

Write a Review

Financial Management Questions & Answers

  Determine jias total annual payment

Jia borrows $10,000 for a term of 10 years at an effective annual interest rate of 12%. At the end of each year she makes annual interest payments and accumulates the principal in two sinking funds. One third of her deposit is made to a sinking fund ..

  It is sometimes argued that a forward exchange rate is an

it is sometimes argued that a forward exchange rate is an unbiased predictor of future exchange rates. under what

  Correlation coefficient between annual portfolio returns

Greta, an elderly investor, has a degree of risk aversion of A = 5 when applied to return on wealth over a 3-year horizon. She is pondering two portfolios, the S&P 500 and a hedge fund, as well as a number of 3-year strategies. If the correlation coe..

  What is the profitability index for this project

Denali Inc. has the following cash flows and a 10% required rate of return: Year Cash Flow 0 - $4,400 (Year 1) 1,500 (Year 2) 2,400 (Year 3) 1,200 (Year 4) 2,600. What is the profitability index for this project?

  Bank owns a high percentage of assets in bonds

Discuss what impact each of the following will have, in general, on EVE sensitivity to a change in interest rates. Consider two cases where rates rise sharply and fall sharply. a. Bank owns a high percentage of assets in bonds that are callable anyti..

  Present value of operating cash outflows for new machine

Feed the Hungry Foundation is a non-profit organization that has a cost of capital of 10 percent. The foundation is considering the replacement of a piece of equipment. Refer to Feed the Hungry Foundation. What is the present value of the operating c..

  Discuss the payout strategy selected by your firm

The announcement could include the announcement of a firm cancelling their dividend payments as well as the various payouts. For the selected firm provide a brief profile of the firm including the primary businesses/industry of the firm. Discuss the ..

  Creditor is interested in short-term cash flow

Investors and creditors are typically not interested in the same thing. Investors are typically interested in whether a company is going to turn a profit over time, while a creditor is interested in short-term cash flow. Decide whether you are an inv..

  What is this stocks expected total rate of return

You buy a share of The Ludwig Corporation stock for $19.40. You expect it to pay dividends of $1.07, $1.16, and $1.2576 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $28.27 at the end of 3 years. Calculate the growth rat..

  Should the firm undertake the healthy bottled water project

Cascade Water Company (CWC) currently has 30,000,000 shares of common stock out- standing that trade at a price of $42 per share. CWC also has 500,000 bonds outstanding that currently trade at $923.38 each. CWC has no preferred stock outstanding and ..

  How the ratios discussed this week

How the ratios discussed this week could be used to evaluate a company of your choice. Use finance.yahoo.com for additional information.

  Five-year project has an initial fixed asset investment

A five-year project has an initial fixed asset investment of $260,000, an initial NWC investment of $20,000, and an annual OCF of −$19,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

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