What is the future value of his investment cash flows

Assignment Help Financial Management

Reference no: EM131026236

Chuck Brown will receive from his investment cash flows of $3,155, $3,500, and $3,840 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at the end of three years? (Round to the nearest dollar.)?

Reference no: EM131026236

Questions Cloud

Determine the present value of the bonds cash flows : The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 16 percent. Assume interest payments are made semiannually. a. Determine the present value of the bond’s cash flows if the required rate of re..

What is the long-run equilibrium aggregate price level : You are also told that K equals 400 units of capital and L equals 625 units of labor. In addition, the money supply equals 10,000 and the velocity of money is constant and equal to 1. What is the long-run equilibrium aggregate price level for this..

Capital gains-the tax effect of this transaction : A corporation is selling an existing asset for $21,000. The asset, when purchased, cost $10,000, was being depreciated under MACRS using a five-year recovery period, and has been depreciated for four full years. If the assumed tax rate is 40 percent ..

Find the joint probability function for y1 and y2 : Contracts for two construction jobs are randomly assigned to one or more of three firms, A, B, and C. Let Y1 denote the number of contracts assigned to firm A and Y2 the number of contracts assigned to firm B. Recall that each firm can receive 0, ..

What is the future value of his investment cash flows : Chuck Brown will receive from his investment cash flows of $3,155, $3,500, and $3,840 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at th..

Treasury inflation-protected security with a par value : Compute the annual interest payments and principal amount for a Treasury Inflation-Protected Security with a par value of $1,000 and a 3-percent interest rate if inflation is 4 percent in year 1, 5 percent in year 2, and 6 percent in year 3.

What is the present value or worth of this bond : Assume a $1,000 face value bond has a coupon rate of 8.5 percent paid semiannually and has an eight-year life. If investors are willing to accept a 10 percent rate of return on bonds of similar quality, what is the present value or worth of this bond..

What is output per unit of capital : If the value of A is 10, and there are 100 units of K and 400 units of labor, what is the value of output equal to in this economy? Show your work. Given the values in part (a), what is output per worker? Given the values in part (a), what is outp..

What will be the value of the investment in two years : Your brother has asked you to help him with choosing an investment. He has $6,000 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0400 annually with the interest being paid quarterly. What will be the..

User Account

All Pages