What is the future value of the cash flows

Assignment Help Financial Management
Reference no: EM131318854

Scottie Barnes has invested in an investment that will pay him $5,400, $5,450, $7,225, and $7,500 over the next four years. If his opportunity cost is 10 percent, what is the future value of the cash flows he will receive? (Round to the nearest dollar.)

Reference no: EM131318854

Questions Cloud

What is the future value of the cash flows he will receive : Scottie Barnes has invested in an investment that will pay him $5,400, $5,450, $7,225, and $7,500 over the next four years. If his opportunity cost is 10 percent, what is the future value of the cash flows he will receive?
What is the aftertax increment to the cash flow : Morris Motors just purchased some 5-year property at a cost of $216,000 and the property will be depreciated based on MACRS. Which one of the following will correctly give you the book value of this equipment at the end of year 2? What is the afterta..
What is the value of this stock at the beginning : Waller Co. (WAG) paid a $0.157 dividend per share in 2006, which grew to $0.346 in 2012. This growth is expected to continue. What is the value of this stock at the beginning of 2013 when the required return is 15.7 percent?
What would the price be if the p-e ratio increased : New York Times Co. (NYT) recently earned a profit of $2.71 per share and has a P/E ratio of 19.95. The dividend has been growing at a 7.25 percent rate over the past six years. If this growth rate continues, what would be the stock price in four year..
What is the future value of the cash flows : Scottie Barnes has invested in an investment that will pay him $5,400, $5,450, $7,225, and $7,500 over the next four years. If his opportunity cost is 10 percent, what is the future value of the cash flows he will receive? (Round to the nearest dolla..
Arguably most risky means of maintaining liquidity : Which of the following is the most efficient yet arguably most risky means of maintaining liquidity? .....and please explain why.
Shares of sirius satellite radio : You would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $3.98 and $3.95, respectively. You place a market buy order for 540 shares that executes at these quoted prices. How much money did it cost to buy these..
Using all four investment assessment methods : Assume ABC Company has chosen to invest in new manufacturing equipment. The initial cost of the equipment is $1,200,000. The equipment has a useful life of 20 years. The company uses straight-line depreciation. Their tax rate is 30%. Using all four i..
What would be the stock price in five years : New York Tomes Co. (NYT) recently earned a profit of $2.21 per share and has a P/E ratio of 19.70. The dividend has been growing at a 6.75 percent rate over the past six years. If this growth rate continues, what would be the stock price in five year..

Reviews

Write a Review

Financial Management Questions & Answers

  Using economic order quantity model in placing the orders

Cheesburger and Taco Company purchases 15,364 boxes of cheese each year. It costs $26 to place and ship each order and $4.08 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. How many o..

  Reason net income can differ from cash flows

Which of the following is a reason net income can differ from cash flows? Which of these is a disadvantage of using the payback period as a capital budgeting tool?

  What is the risk neutral probability of up movement

A binomial tree with three-month time steps is used to value a currency option. The domestic and foreign risk-free rates are 2% and 5% respectively. The volatility of the exchange rate is 20%. What is the risk neutral probability of an up movement?

  What is the firm cost of equity if its debt cost

The Hatfields Corporation is a zero growth firm with an expected EBIT of $250,000 and corporate tax rate of 40 percent. Hatfields uses $1,000,000 of debt financing, and the cost of equity to an unlevered firm in the same risk class is 15%. a) What is..

  Calculate the interest rate

The interest rate in the United States is 4% and the euro is trading at 1 euro per dollar. The euro is expected to depreciate to 1.1 euro per dollar. Calculate the interest rate in Germany.

  What is the number of the form to request a photocopy

Locate information on the procedure by which an individual taxpayer can request a photocopy of a prior year federal income tax return. What is the number of the form to request a photocopy? Does the IRS charge a fee for this service?

  The differences of the three cases of stock valuation

Expound on the differences of the three cases of stock valuation. What influences these different cases? How are utilities not the same as technology stocks? How are food firms not the same as the other two? Tech firms, as a general rule, pay no divi..

  Type of interest rate risk does financial institution face

A commercial bank has $200 million of floating rate loans yielding the T-bill rate plus 2%. These loans are financed by $200 million of fixed-rate deposits costing 9%. A savings association has $200 million of mortgages with a fixed rate of 13%. What..

  How should this sunset provision affect the savings

How should this sunset provision affect the savings and charitable giving rates of the elderly prior to 2011 and subsequent to 2011?

  States that the real rate of interest is same all over world

________ States that the real rate of interest is the same all over the world.

  Retirement account-expect to have in account when he retires

Fei has 11,600 dollars in his retirement account. In addition, he plans to save 8,100 dollars per year in his account for 8 years. His first contribution to his account is expected immediately and his last contribution is expected in 7 years. Fei exp..

  What is the yield value-art supplies has a net income

Art Supplies has a net income of $138,600. The firm has $1.25 million in assets and $500,000 in liabilities. What is the return on equity? A bond has a dollar value of an 01 of .0684. What is the yield value of a 32nd? A Treasury bill has a face valu..

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