Present value and multiple cash flows investment

Assignment Help Finance Basics
Reference no: EM131435139

1. Present Value and Multiple Cash Flows Investment X offers to pay you $4,700 per year for eight years, whereas Investment Y offers to pay you $6,700 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent?

2. Calculating Loan Payments You want to buy a new sports coupe for $79,500, and the finance office at the dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?

Reference no: EM131435139

Questions Cloud

Explain some of the reasons why behavioral problems : Could you please explain some of the reasons why behavioral problems occur when a new accounting information system is introduced and provide five behavioral issues and how companies deal with them.
Is stop-and-frisk a form of harassment : The New York Police Department said its controversial policy kept the streets safe, but critics claim it was a form of harassment. What arguments can you think of that counter's this claim? Is stop-and-frisk a form of harassment? Provide an explan..
Required revenue to achieve target operating income : These figures yield an answer of 150 units (30,000 divided by 200). What is the required revenue to achieve the target operating income of $20,000?
Discuss how critical thinking might be applied : Information security professionals often face complicated situations that require the application of critical thinking in order to solve problems. Provide an example of how critical thinking would apply in a situation specific to your area of inte..
Present value and multiple cash flows investment : Present Value and Multiple Cash Flows Investment X offers to pay you $4,700 per year for eight years, whereas Investment Y offers to pay you $6,700 per year for five years. Which of these cash flow streams has the higher present value if the disco..
Explain what is happening with the social issue : Explain what is happening with the social issue-what is its impact? Who is affected? What do people think about it? Are there any debates surrounding the issue? Also, provide a brief history of how the issue began.
Canada exchange rate in terms of the us dollar : Explain why any uncertainty regarding euro could impact Canada's exchange rate in terms of the US dollar?
Personal net worth during different stages of life : Discuss what changes might take place in your personal net worth during different stages of your life. How might these changes affect your credit capacity? Mention at least three different stages of life.
Research about the current data mining projects : Using the Internet, find out information about two current data mining projects being conducted by either a corporation or the government. Write a 1200 word Research Paper in APA format. Address the following items:Research and describe the two ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Besides the primary investor-creditor group what other user

besides the primary investor-creditor group what other user groups could claim to be stakeholders in the firm? how

  Determine the optimum dividend payout ratio

ABC company which earn $10 per share is capitalized at 10 percent and has a return on investment of 12 percent. Determine the optimum dividend payout ratio and the price of share at the payout using Walter's dividend policy model.

  Estimating the purchase price

At the acquisition date the equity of the subsidiary was as follows: Share capital 300, retained earnings 250. When acquiring and estimating the purchase price, parent estimated Sub1 having good future business expectations. During the valuation p..

  Dual distribution method

Identify a product offered through a manufacturer using a dual distribution method. Are there differences between the customers targeted by each channel? How do the purchase experiences differ?

  What is the price of a consol with a coupon payment

What is the price of a consol with a coupon payment of $200 per year if the interest rate is 10 percent?- What is the interest rate on a consol if the coupon payment is $400 and the price of the consol is $8,000?

  After tax cost of the sony bond

a. The before tax cost of the Sony bond using the bond's yield to maturity (YTM) is ___ %? b. The after tax cost of the Sony bond given the corporate tax rate is ___ %?

  The chief financial officer mr smith told him it was

in march 2010 hertz pain relievers bought a massage machine that provided a return of 8 percent. it was financed by

  We are evaluating a project that costs 168 million has a

we are evaluating a project that costs 1.68 million has a 5-year life and has no salvage value. assume depreciation is

  What is their purpose in behavioral research

What are informed consent and debriefing, and what is their purpose in behavioral research? Is it ever ethical to conduct research that does not use informed consent? Is it ever ethical to conduct behavioral research that does not use debriefing?

  Return on sales for long pond is lower in 2008 than in 2007

comparative income statements for long pond company for 2008 and 2007

  Net income of 360 million roa of 10 and interest expense of

minivanluv a maker of minivans has the following financial information. net income of 3.60 million roa of 10 and

  What is the list price of the bond on the settlement date

what is the list price of the bond on the settlement date? What is the accrued interest on the bond? What is the invoice price of the bond?

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