Question 1 show value of annuity problemyou will receive

Assignment Help Financial Accounting

Reference no: EM13349461

Question :

1. Show value of annuity problem.

You will receive $2,000 at the end of the next 12 years, considering a 6% discount rate, what is the current value of the cash flows?

Risk & Return and the CAPM.

Based on the subsequent information, evaluate the required return based on the CAPM:

Risk Free Rate = 3.75%

Market Return =10%

Beta = 1.32

Using a 4.4 percent discount rate, determine the Net Present Value, Profitability Index, Payback and IRR for each of the investment projects below (note, the inflows are for each year). Based on your evaluation rank the projects and support you answer.

Project 1

Initial Invest= $505,000, Cash inflows of $105,000 for years 1-5 and $50,000 for years 6-10

Project 2

Initial Invest= $1,100,000, Cash inflows of $420,000 for years 1-3, $0 for years 4-7 and $250,000 for years 8-10.

Project 3

Initial Invest= $840,000, Cash inflows of $300,000 for years 1-5, $0 for years 6-9 and $100,000 for year 10.

(Part 2)

Considering a budget of $1,200,000 what are your recommendations for the three projects in the above problem. Describe.

Consider a budget of $2,000,000 what are your recommendations for the above problem? Describe.

You put $1,000 in an investment account today which will earn 7% over the next 20 years, what is the future value?

Determine the sustainable growth based on the subsequent information:

Earnings after taxes = $23,000.
Equity = $110,000.
d=48.7%

Reference no: EM13349461

Questions Cloud

Question 1 karen is single and is an active participant in : question 1. karen is single and is an active participant in her employer retirement plan. she contributed 5500 the

Question1 define defense in depth and explain the different : question1. define defense in depth and explain the different layers.2. what is leading security principle in

Questionstatus your own position privacy in age of the : questionstatus your own position privacy in age of the internet and offer a defense for it. using ethical dialectical

Questionwrite down java-like pseudocode to specify the : questionwrite down java-like pseudocode to specify the logic for following program application-write down an

Question 1 show value of annuity problemyou will receive : question 1. show value of annuity problem.you will receive 2000 at the end of the next 12 years considering a 6

Questionthis question tests your facts and understanding of : questionthis question tests your facts and understanding of normal forms.given following relation and functional

Question a client has engaged you to inform her on how she : question a client has engaged you to inform her on how she is doing with her preparation for retirement. she is a

Question prepare an essay in which you recommend the most : question prepare an essay in which you recommend the most advantageous tax filing status for spouse a and spouse b on

Question 1a which is a superior public relation tool a : question 1a which is a superior public relation tool a press conference or a press release? give at least five grounds

User Account

All Pages