User Account

All Pages

What is the present value of a perpetual stream of cash flow

Assignment Help Financial Management
Reference no: EM131090788

Question 1: Sarah Wiggum would like to make a single investment and have $1.6 million at the time of her retirement in 35 years. She has found a retirement fund that will earn 4% annually. How much will Sarah have to invest today? If she earned an annual return of 18%, how soon could she then retire?

Question 2: How many years will it take for $500 to grow to $1,051.82 at 10% compounded annually?

Question 3: What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of one year and grows at a rate of 7% indefinitely? The rate of interest used to discount the cash flows is 9%. What is the present value of the growing perpetuity?

Question 4: To pay for your education you have taken out $28,000 in student loans. If you make monthly payments over 13 years at 6% compounded monthly, how much are your monthly student loan payments?

Question 5: You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:

Investment
End of Year
 A
 B
 C
1 $1,000 $1,000 $ 5,000
2 2,000 1,000 5,000
3 3,000 1,000 -5,000
4 -4,000 1,000 -5,000
5 4,000 3,000 15,000

What is the present value of each if these three investments if the appropriate discount rate is 13%?

Reference no: EM131090788

Questions Cloud

Domain of a function : If the domain of a function f is the set of real numbers and the domain function g is also the set of real number under what circumstances do ( f +g ) (x) and ( f / g) (x) have different domains?
Determine the total number of possible : Describe a different set of conditions that can be used to create a secure 5 character password. Determine the total number of possible passwords that can be created using your conditions.
What is the explanation for the difference : Consider the current it takes to power a + 5 V 74xx245 (ICC) as shown in Table 1.5. What is the qualitative difference between the CMOS devices and the non-CMOS devices? What is the explanation for the difference?
Exterior-interior and seat styles : A car manufacturer advertises that it offers 60 unique cars that can be created from the exterior, interior, and seat styles it offers.
What is the present value of a perpetual stream of cash flow : What is the present value of the growing perpetuity - If you make monthly payments over 13 years at 6% compounded monthly, how much are your monthly student loan payments?
Physical characteristics and changes : Directions: For this assignment you will write an essay that will explore your projections of what your life will be like when you reach middle adulthood.
Conduct two separate topic investigations : In order to prepare yourselves for the "big paper," you will conduct two separate topic investigations or "I-searches."  From these investigations, you will write two I-search / Topic Selection papers (see criteria below).  Begin by asking yoursel..
Training workshops on a variety of topics : 1) Superior Training offers training workshops on a variety of topics. One such workshop is titled "Introduction to MS Office 2010". The workshop is a two day workshop to be held at a rented facility with access to computer terminals for use by th..
Describe what type of work each department does : List the typical departments that might be found in a midsize to large manufacturing organization. Briefly, describe what type of work each department does. Be sure to include all of the support functions it takes to run such a business.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd