Present value of this cash flow pattern

Assignment Help Financial Management
Reference no: EM13811655

You have been offered the opportunity to invest in a project that will pay $1,935 per year at the end of years one through three and $13,979 per year at the end of years four and five. If the appropriate discount rate is 20.0 percent per year, what is the present value of this cash flow pattern?

Round the answer to two decimal places.

Reference no: EM13811655

Questions Cloud

What will the annual cash flow be : If you put up $41,000 today in exchange for a 6.75 percent, 14-year annuity, what will the annual cash flow be?
Advantages of spin-off over other restructuring strategies : Speculate as to why Northrop Grumman used a spin-off rather than a divestiture, a split-off, or a split up to separate Huntington Ingalls from the rest of its operations. What were the advantages of the spin-off over the other restructuring strategie..
Determine the free cash flow to the firm fcff : Following are financial statement numbers and select ratios for Darden Restaurants Inc. for the year ended May 27, 2012 (dollars in millions). Use the information to determine the free cash flow to the firm (FCFF) in 2013.
Indicative of a restrictive short-term financial policy : Which one of the following actions is indicative of a restrictive short-term financial policy?
Present value of this cash flow pattern : You have been offered the opportunity to invest in a project that will pay $1,935 per year at the end of years one through three and $13,979 per year at the end of years four and five. If the appropriate discount rate is 20.0 percent per year, what i..
How does the current landscape of global hrm : How does the current landscape of global HRM impact HR planning? What are the HRM implications of Hofstede's, Trompenaars', and the GLOBE models' cross-cultural dimensions
What is the npv of the project in the previous question at t : 1. Freeman Corp. is considering investing in a project that will last three years. The project will require an immediate capital expen- diture of $600,000 which will be depreciated to zero on a straight line basis. Freeman estimates that the revenues..
What should be the role of training : What is HR's role in impacting your the career development of employees? What should be the role of training? How can training programs be evaluated on their effectiveness
Determine the total value that has to be paid back : Jane buys furniture at the value of R10000. She lends the money on the 1st of February at a financial institute. Determine the total value that has to be paid back on 1July 2015 and How many months will it take Jane to pay the loan back.

Reviews

Write a Review

Financial Management Questions & Answers

  Compute the after-tax rate of return for the truck

The Ogi Corporation, a construction company, purchased a used pickup truck for $22,000 and used MACRS depreciation in the income tax return. During the time the company had the truck, they estimated that it saved $8,000 a year. At the end of 4 years,..

  Describing a firms capital structure

(Describing a firm’s capital structure) Lowe’s Companies, Inc. (LOW) and its subsidiaries operate as a home improvement retailer in the United States and Canada. As of February 1, 2008, it operated 1,534 stores in 50 states and Canada. The company’s ..

  What is the yield to maturity on the bonds

Tom is considering the purchase of Red Lobster Inc. bonds that were issued 4 years ago. When the bonds were originally sold, they had a 25-year maturity and a 6.54% coupon interest rate paid annually. What is the yield to maturity on the bonds if you..

  Opportunities for influencing outcome of reported earnings

Opportunities for influencing the outcome of reported earnings.

  Change in bond price as the market yield changes

What is the Modified Duration of this bond when the market yield is at YTM and explain why and when Modified Duration under-predicts and over-predicts the change in bond price as the market yield changes.

  About the valuation

Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 3% and the market risk premium is 4%. Van Buren currently expects to pay a year-end dividend of $1.65 a share (D1 = $1.65). Van Buren..

  Assume perfect capital markets and no taxation

A company's debt is given by a bond that will mature in two years. After two years the company will terminate all activity. The company unlevered equity value in two years can be $17 millions with a 50% probability or $14 millions with probability 50..

  Whose responsibility it is to communicate the vision

Whose responsibility it is to communicate the vision of the company during a time of mergers to the employees and about the impending mergers of the company being acquired?

  Self employed certified public accountant

On December 31, 2009, Cathy Chen, a self employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $360,000 for her accounting services. She had two employees: a bookkeeper and a clerical assis..

  What is the net present value of paying the points

A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 percent with 2.25 points. If you will keep the mortgage for 30 years, what is the net present value of paying the points (to ..

  Data from its activity-based system

Max Inc. has provided the following data from its activity-based system: The activity rate for the designing products activity cost pool is

  Deciding whether to add bard publishing to your portfolio

You are deciding whether to add Bard Publishing to your portfolio, but you are concerned about your projection for their growth rate. Bard's cost of equity capital (the discount rate for equity) is known to be 8% and they just paid a dividend of $4.7..

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