What is the NPV of this opportunity

Assignment Help Financial Management
Reference no: EM13721866

A friend offers to give you 10 payments of $1,500 at annual time periods zero through 10 except year three if you give him $13,500 at year three. What is the NPV of this opportunity if i=20%?

A) -891.13

B) -979.26

C) -609.12

D) -546.73

Reference no: EM13721866

Questions Cloud

Compute the prospective rate of return before tax : A project has an initial cost of $140,000 and an estimated salvage value after 16years of$80000. Estimated average annual recipts are $26,000. Estimated average annual disbursement are $16,000. Assuming that annual receipts and disbursement will be u..
Bonds make semi-annual payments : Hollin Corporation has bonds on the market with 23.5 years to maturity, a YTM of 7 percent, and a current price of $1,051. The bonds make semi-annual payments. What must the coupon rate be on these bonds?
Whats the impact of taxing soda on obesity : what's the impact of taxing soda on obesity - Write a policy analysis
Calculate future cash flows precisely and obtain exact value : Do you agree or disagree with the following statement given the discussion in this chapter? We can calculate future cash flows precisely and obtain an exact value for the NPV of an investment
What is the NPV of this opportunity : A friend offers to give you 10 payments of $1,500 at annual time periods zero through 10 except year three if you give him $13,500 at year three. What is the NPV of this opportunity if i=20%?
Compute the prospective rate of return before taxes : A project has an initial cost of $150,000 and an estimated salvage value after 13 years of $90,000. Estimated average annual receipts are $27,000. Estimated average annual disbursements are $16,000. Assuming that annual receipts and disbursements wil..
What is return on equal weighted index of these three stocks : Assume there are only three stocks in the market: A, B, and C. At time 0, P(A) = $10, P(B) = $20, and P(C) = $10. At time 1, P(A) = $15, P(B) = $30, P(C) = $5. The number of shares outstanding is 1 million for A, 2 million for B, and 2 million for C...
What could be your priority in babas case : What are the structural design considerations that Air Force Computer Forensics Laboratory must have considered and Design a chain of custody form and fill in appropriately dummy information
Gender discrimination-sex discrimination and violation : Mary filed a suit against Thomas Contracts, alleging that her discharge was due to gender discrimination, sex discrimination, and in violation of Title VII. Analyze and determine what important facts you would need to know in order to ascertain Ma..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the cost of preferred stock financing

(Cost of preferred stock) The preferred stock of Gator Industries sells for $38.08 and pays $2.71 per year in dividends. What is the cost of preferred stock financing? If Gator were to issue 525,000 more preferred shares just like the ones it current..

  Prepare the journal entryies for the first year

Prepare the journal entryies for the first year of the stock-option plan and prepare the journal entry(ies) for the first year of the plan assuming that, rather than options,

  What is this bond''s current market value

A bond for Firebird, Inc. has a coupon rate of 7% and face value of K1000, 000. The  yield to maturity is 6.8%. The bond has a remaining life of 30 years and makes  annual coupon payments? What is this bond's current market value?

  Calculate the theoretical value of the forward contract

Calculate the theoretical value of the forward contract. Compare and comment and calculate the value of the option by using the BlackOScholes formula.

  What is the return on investment in life insurance

You purchase a $100,00 life insurance policy for a single payment of $35,000. If you want to earn 9 percent on invested funds, how soon must you die for the policy to have been the superior alternative? If you die within ten years, what is the return..

  What is the operating cash flow for the project

You are evaluating a project for your company. You estimate the sales price to be $220 per unit and sales volume to be 3,200 units in year 1; 4,200 units in year 2; and 2,700 units in year 3. The project has a three-year life.

  Explain how the cash budget and the capital budget relate

Explain how the cash budget and the capital budget relate to pro forma financial statements.

  What is the dollar-weighted duration of the bank''s liability

What is the dollar-weighted duration of the bank's liability portfolio if the bank wants to maintain zero leverage - adjusted duration gap?

  The influence of web-based information on global citizenship

Examine the influence of web-based information on global citizenship and multicultural understanding. Then, compile a list of three factors you believe should be considered when evaluating Internet sources for use in researching information.

  Current spot exchange rate and interest rate data

Proctor and Gamble's affiliate in India, P&G India, procures much of its toiletries product line from a Japanese company. Because of the shortage of working capital in India, payment terms by Indian importers are typically 180 days or longer.

  The campbell company is a manufacturetheir capital

the campbell company is a manufacture.their capital structure consists oflong-term debt with an incremental

  Questiona six-month call options with strike prices of 45

questiona six-month call options with strike prices of 45 and 50 cost 7 and 4 in that order1 describe the maximum gain

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