What is the future value at an interest rate

Assignment Help Finance Basics
Reference no: EM13282546

Havana, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? What is the future value at an interest rate of 11 percent? At 24 percent?

Year 1 $910
Year 2 $ 1140
Year 3 $1360
Year 4 $2100

 

Reference no: EM13282546

Questions Cloud

Determine the speed of the first marble : A 50g marble moving at 2.2m/s strikes a 30g marble at rest. Assume the collision is perfectly elastic and the marbles collide head-on. What is the speed of the first marble
What is the most you should pay for the annuity : You have a chance to buy an annuity that pays $2,500 at the end of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
Explain releasing a photon of electromagnetic radiation : Consider an electron moving from an n = 2 orbital to an n = 1 orbital. For this to occur, will the atom need to absorb energy or dissipate energy by releasing a photon of electromagnetic radiation. Is the n = 2 orbital more or less stable than the..
How long does it take the boat to reach the buoy : A speedboat moving at 33.0 m/s approaches a no-wake buoy marker 100 m ahead. How long does it take the boat to reach the buoy
What is the future value at an interest rate : Havana, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? What is the future value at an interest rate of 11 percent? At 24 percent?
How many photons does the laser emit : The frequency doubled output of a Nd3+ YAG laser has a wavelength of 532nm. how many photons does the laser emit at 532nm in 3 minutes
What is the accounting break-even quantity : What is the degree of operating leverage at the financial break-even level of output?
By how much will the mass be changed : A 11.9-g mass is suspended 1.47 cm above a nonconducting flat plate, directly above an embedded charge of q. by how much will the mass be changed
Determine the values of req-xeq-rc and xm : The results of open-circuit and short-circuit tests on asingle-phase, 25kVA 440V / 220V, 60Hz transformer are as follows: Open-circuit test (primary open-circuited, with instrumentation on the secondary side): 220V, 9.6A, 710W.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the real rate of return on the stock

You purchased 200 shares of stock for $23 per share exactly one year ago. During the year, the stock paid a $1.10 dividend per share and the current stock price is $18 per share. The inflation rate the last year was 2%.

  What was the annualized rate of return to the swiss investor

Today, at maturity, the exchange rate is 1.324 Swiss Francs per dollar. What was the annualized rate of return to the Swiss investor?

  What is the value of the growth option

If the company does not consider real options, what is Project X's NPV? Round your answer to two decimal places. If the answer is negative, use minus sign.

  The cost-cutting measures

Based on the cost-cutting measures you identified, state how much money every year you anticipate saving if you implemented every measure.

  Determine the value of per share

This company pays a perpetual annual dividend of 2.5 percent of its par value. Par value is $100 per share. If investors require rate of return on this stock is 15%, determine the value of per share?

  What is your best estimate of the aftertax cost of debt

In addition, the company has a second debt issue on the market, a zero coupon bond with 9 years left to maturity; the book value of this issue is $69 million, the face value (also called par value) is $84 million, and the bonds sell for 76 percent..

  What annual rate of return would have to have been earned

What annual rate of return would have to have been earned on the account over an 18-year period?

  How monetary policy helps to sustain economic growth

Discuss how monetary policy helps to sustain economic growth and smooths out the swings in the business cycle. Analyze the ways in which monetary policy can influence a nation's economic goals of achieving full employment, controlling inflation, su..

  What is the nominal interest rate

The real risk-free rate is 4%. Inflation is expected to be 3% this year, 5% next year, and then 5% thereafter. The maturity risk premium is estimated to be 0.0003 x (t - 1), where t = number of years to maturity. What is the nominal interest rate ..

  What is the total dollar return and the percentage return

Then on December 1, 2013, you sold the bond when the market rate of interest was 6.0%. What's the total dollar return and the percentage return on your initial investment?

  What is twindles cost of retained earnings

Analyst's expect Twindle's dividends to grow by at least 5% per year for the next 5 years. Using the capital asset pricing model, what is Twindle's cost of retained earnings?

  How economic policy affected the lending institutions

From an economic growth & prosperity level, we have to look at the role of financial system. We know that high inflation means higher interest rates,

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