What is the net present values of these cash flows

Assignment Help Financial Management
Reference no: EM131043940

An investment of $20,000 now is projected to return $5,000 in one year, $6,000 in two years, $7,000 in three years and $10,000 in four years. What is the net present values of these cash flows at i = 10%?

Using the table of investment year rates on slide 7, find three year accumulation factors for an investor starting in 2002 under the a) investment year method and b) the portfolio method.

Reference no: EM131043940

Questions Cloud

What is meant by the term self-supporting growth rate : What is meant by the term “self-supporting growth rate”? How is this rate related to the AFN equation, and how can that equation be used to calculate the self-supporting growth rate?
Concepts in tourism policy and planning and summarises : Key concepts in tourism, policy and planning and summarises in 250 words from the following authors Dredge, D. & Jenkins, J. (2011) Chapter 1: New Spaces of Tourism Planning and Policy. In (ed) Dredge, D. & Jenkins, J. (2011 stories of practice
Discuss about staffing and training : Discuss about staffing and training. What kind of people would you hire for your organization and how will you train them? What kind of management experience would you build in training and education model?
Find the time weighted and dollar weighted rates of return : An investment manager had a fund of 100,000 at the start of the year. on Feb 1, the fund had dropped to 98,000 and a withdrawal of 10,000 was made. On Sep. 1, the fund balance was 100,000 and a new deposit of 10,000 was made. At year end, the account..
What is the net present values of these cash flows : An investment of $20,000 now is projected to return $5,000 in one year, $6,000 in two years, $7,000 in three years and $10,000 in four years. What is the net present values of these cash flows at i = 10%? Using the table of investment year rates on s..
Orientations of supplier relationships : In terms of purchasing and supply chain management, how do the two orientations of supplier relationships impact the strategy of planning, objectives, risk, and sourcing? Provide an example in which your company practices one over the other.
Discuss the strategic issues in a large multisite : Discuss the strategic issues in a large multisite company with a single corporate centralized purchasing department versus a decentralized multiple sites purchasing group.
Evaluate several proposed capital projects : The Morris Company is attempting to determine its cost of capital in order to evaluate several proposed capital projects and set its capital budget for next year. The following information has been made available: Target capital structure is 40% debt..
Determine the remainder of the budget : Drucker notes that the mission needs to translated and communicated in both profit and non-profit organizations. Such analysis will then provide everyone with the key monitoring of budgets to actuals so that they can measure their performance.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the price of the combined test

What is the price of the combined test assuming marginal cost pricing - assume that allied wants a contribution margin of $10 per test. What price must be set to achieve this goal?

  Holding period return to this investment

Over the past 10 years, your $15,000 in gold coins has increased value by 250 percent. You plan to sell these coins today. You have paid annual storage and insurance costs of $1520 per year. Assay expenses at the time of sales are expected to total $..

  Place a market buy-order

Buying Stock with a Market Order You would like to buy shares of Ralph Lauren (RL). The current bid and ask quotes are $85.18 and $85.30, respectively. You place a market buy-order for 500 shares that executes at these quoted prices. How much money d..

  Rate of return and standard deviation of the portfolio

Suppose that a person won the Florida lottery and was offered a choice of two prizes: (1) $500,000 or (2) a coin-toss gamble in which he or she would get $1 million if a head were flipped and zero if a tail. Construct an equal Construct an equal-weig..

  Shareholders require to be compensated for financial risk

Ethier Enterprise has an unlevered beta of 1.05. Ethier is financed with 45% debt and has a levered beta of 1.45. If the risk free rate is 4.5% and the market risk premium is 7%, how much is the additional premium that Ethier's shareholders require t..

  What portion of the cost of the loan is at risk of changing

Use the information for York Corporation to answer following question(s). Use an Excel spreadsheet that shows all your work with step-by-step explanations. Make sure your final answer is clearly identified. What portion of the cost of the loan is at ..

  Analysis of the investment

Analysis of the Investment,  To prepare for this Individual Assignment: Review the Anthony's Orchard case study in the unit resources.

  What will be the market price of these bonds

What is the par value today and what will it be three years from today -  Write down the current prime rate, 15-year mortgage rate, the 3 month T-Bill rate and the 5-year T-Bond rate (for the USA). Are you surprised?

  Equivalent real cash flow and real discount rate

Mr. Art Deco will be paid $100,000 one year hence. This is a nominal flow, which he discounts at an 8% nominal discount rate: PV = 100,000 = $ 92,593 1.08 The inflation rate is 4%. Calculate the PV of Mr. Deco’s payment using the equivalent real cash..

  About the sarbanes-oxley act

You likely have read about the Sarbanes-Oxley Act.  Why do you suppose Congress passed this law?  In your opinion, is the law providing any benefit for the average investor?  Do you think if we have enough such laws, it will eventually be impossible ..

  Money in other investments with equal risk

You have a chance to buy an annuity that pays $10,000 at the beginning of each year for 10 years. You could earn 5.75% on your money in other investments with equal risk. What is the most you should pay for the annuity?

  Prepared to make equal annual deposits into the account

You want to have $78,000 in your savings account 12 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.80 percent interest, what amount must you deposit each year?

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