What is present value of these cash flows-present value

Assignment Help Financial Management
Reference no: EM13911577

Seaborn Co. has identified an investment project with the following cash flows.

Year Cash Flow

1) $850

2) 1,030

3) 1,280

4) 1,130

Required:

(a) If the discount rate is 10 percent, what is the present value of these cash flows?

(b) What is the present value at 17 percent?

(c) What is the present value at 28 percent?

Reference no: EM13911577

Questions Cloud

Project is expected to create operating cash flows : A project is expected to create operating cash flows of $22,500 a year for three years. The initial cost of the fixed assets is $50,000. These assets will be worthless at the end of the project. An additional $3,000 of net working capital will be req..
Face value zero-coupon bonds-number of bonds the firm : The MerryWeather Firm wants to raise $22 million to expand its business. To accomplish this, the firm plans to sell 20-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 5 percent. What is the minimum number of bonds the fir..
What is the slope of charlie budget line : What is Charlie's utility if he consumes the bundle (20, 10)? On the graph, draw his indifference curve through (20,10). Does this indifference curve cross Charlie's budget line, just touch it, or never touch it?
Discuss how a normal probability plot is constructed : Discuss how a normal probability plot is constructed. If a normal probability plot has the appearance of a straight line, what should we conclude?
What is present value of these cash flows-present value : Seaborn Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 17 percent?
About the what is the present value : An investment will pay you $20,000 in 7 years. The appropriate discount rate is 7 percent compounded daily. What is the present value?
What is the payback period of the ice cream cart : It will cost $4,000 to acquire a small ice cream cart. Cart sales are expected to be $3,200 a year for five years. After the five years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the pa..
Shareholders as the annual dividend : Michael's, Inc. just paid $1.85 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.10 percent. If you require a rate of return of 8.3 percent, how much are you willing to pa..
New chemical vapor depositor in order to make silicon chips : Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $6 million to buy the machine and $10,000 to have it delivered and installed. The machine is expected to have a working life of six years. Sa..

Reviews

Write a Review

Financial Management Questions & Answers

  What must he save per month to achieve this goal

Bob would like to have $26,000 in 5 years to use as a down payment on a house. He plans on depositing an equal of money at the end of every month to save for this goal. If Bob can earn 6% interest per year(0.5% interest per month) what must he save p..

  Identified an investment project with the cash flows

ABC Co. has identified an investment project with the following cash flows. if the discount rate is 6 percent, what is the future value of these cash flows in 4 year? what is the future value at discount rate of 8 percent? at 16 percent?

  Returns from an asset are normally distributed

Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.5 percent and the standard deviation of those stocks in this period was 43.89 percent. What is the approximate prob..

  Nominal annual yield rate compounded semi annually

A 10 year bond has semi-annual coupons. The coupon rate is 5% for the first 5 years and 9% for the following 5 years. The bond has face amount of 100 and a redemption amount of 105. Six months before the first coupon, the bond is purchased for 100. C..

  Calculate unpaid balance after ten years of making payment

A condominium is purchased for $80,000 with a down payment of $12,000 at an annual interest rate of 9% for 15 years. Calculate the unpaid balance after 10 years of making payments. What would be the market value of the condominium in Exercise 21 afte..

  1 explain in your own words when and how the composition of

1. explain in your own words when and how the composition of capital the mix of debt and equity does not affect the

  International funds there are two types core and targeted

In Global and International funds there are two types "core" and "targeted". What is primary difference?

  Remaining life and current values of the bonds

The older bonds have a face value of $100,000 each and pay 18% in semi-annual instalments. They have an early call provision for a 5% premium over face value. The bonds were sold 8 years ago and have a 12-year term.

  What is the net income for firm

Lifeline, Inc., has sales of $590,000, costs of $268,000, depreciation expense of $68,500, interest expense of $35,500, and a tax rate of 40 percent. Required: What is the net income for this firm?

  What are their nominal yield to maturity

YIELD TO MATURITY A firm's bonds have a maturity of 9 years with a $1,000 face value, have an 7% semiannual coupon, are callable in 5 years at $1,200, and currently sell at a price of $1,150. What are their nominal yield to maturity?

  Explain the role of the us federal reserve the federal

describe how the u.s. financial markets impact the economy businesses and individuals.explain the role of the u.s.

  What amount of depletion should be recognized

In 2015, Ellie Co. purchased property with natural resources for 28,000,000. The property had a residual value if 5,000,000. However the entity is required to restore the property to the original condition at a discounted amount of 2,000,000. What am..

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