What is the net present value of this investment

Assignment Help Financial Management

Reference no: EM13730385

You are making a $63,500 investment and feel that a 10% rate of return is reasonable given the nature of the risks involved. You feel you will receive $19,500 in the first year, $24,700 in the second year and $43,200 in the third year. What is the net present value of this investment given your expectations?

Reference no: EM13730385

Questions Cloud

What is the bond equivalent yield : A U.S. Treasury bill with 104 days to maturity is quoted at a discount yield of 1.70 percent. What is the bond equivalent yield?

What was the approximate inflation rate : Your investments increased in value by 11.1 percent last year but your purchasing power increased by only 8.4 percent. What was the approximate inflation rate?

The yield to maturity on a treasury strips : What is the yield to maturity on a Treasury STRIPS with 14 years to maturity and a quoted price of 58.353? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Financial statements show operating profit : Mattel Inc.’s 2011 financial statements show operating profit before tax of $1,041,101 thousand, net income of $768,508 thousand, provision for income taxes of $202,165 thousand and net non operating expense before tax of $70,428 thousand. Mattel’s s..

What is the net present value of this investment : You are making a $63,500 investment and feel that a 10% rate of return is reasonable given the nature of the risks involved. You feel you will receive $19,500 in the first year, $24,700 in the second year and $43,200 in the third year. What is the ne..

What is the bid asked spread in dollars : what is its current yield. what is its YTM. what is the bid asked spread in dollars.

From a purely financial perspective are there situations : From a purely financial perspective are there situations in which a business would be better off choosing a project with a shorter payback over one that has a larger NPV?

Calculate weighted average cost of capital : Common shares: 100,000 shares currently outstanding with a market price of $32.50 per share. A dividend of $2.00 per share was paid last year, and dividends are expected to grow at a rate of 4% for the foreseeable future. Preferred shares: Ajax has $..

What is the expected market price per share : You are thinking about buying a share of Glencoe Industries, which has a current market price of $30.00 per share. Glencoe expects to pay a dividend of $1.125 per share next year. Your required rate of return on these types of investments s 6% and is..

User Account

All Pages