What is the most you should pay for the deal

Assignment Help Finance Basics

Reference no: EM132021648

Question: You are offered a deal that would pay you the following cash flows. If you require a 12% rate of return, what is the most you should pay for the deal? Assume that all cash flows occur at the end of the year (with the exception of year "0", which of course occurs immediately).

Year Cash Flow

0 $0

1 1000

2 1000

3 2000

4 2000

5 1000

Reference no: EM132021648

Questions Cloud

What is the discounted payback period : What is the discounted payback period (decimal years) for an investment of $48,000 with an annual investment income of $6,000 starting at the end of the first

What is the required rate of return on stock x : Assume that the risk-free rate is 5% and the market risk premium is 7%. Do not round intermediate calculations. What is the required rate of return on Stock X?

What do you think about the process of creating a project : If you could go back in time to a few weeks ago, what are some of the things you know today that you would tell yourself?

Real versus nominal gdp : Consider a simple economy that produces two goods: cupcakes and muffins. The following table shows the prices and quantities of the goods over

What is the most you should pay for the deal : You are offered a deal that would pay you the following cash flows. If you require a 12% rate of return, what is the most you should pay for the deal?

What was the republican mothers contribution to society : What made the colonists realize it was time to declare their independence? Was it time? Explain your answer.

By what percentage did the gdp of canada increase : By what percentage did the GDP of Canada increase from 1990 to 2000 in U.S. dollars?

What is the firm degree of operating leverage : What is the firm's degree of operating leverage (defined as the ratio of the percent change in EBIT to the percent change in sales) in going from a recession.

Checking account at the local bank : Tracy Williams deposits $500 that was in her shoebox into a checking account at the local bank. The bank maintains a reserve ratio of 12%:

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

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!

Submit Assignment

User Account

All Pages