What is the present value of the annual cash flow

Assignment Help Business Economics
Reference no: EM131011276

An investment, which is worth 22,000 dollars and has an expected return of 15.75 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow is expected in 9 years from today. What is the present value of the annual cash flow that is expected in 2 years from today?

Reference no: EM131011276

Questions Cloud

Stocks expected return plots : If a stock's expected return plots on or above the SML, then the stock's return is (A)_________ to compensate the investor for risk. If a stock's expected return plots below the SML, the stock's return is -_(B)_______to compensate the investor for ri..
What is the marginal cost of oil production : What is the marginal cost of oil production. What is the marginal revenue for oil production. Find the production level that maximizes profit.
Making regular annual payments : Allysha just borrowed 35,600 dollars. She plans to repay this loan by making a special payment of 5,500 dollars in 5 years and by making regular annual payments of 6,700 dollars per year until the loan is paid off. If the interest rate on the loan is..
Maldistribution between primary and specialty physician care : Submit a paper that explores the factors creating the imbalance/maldistribution between primary and specialty physician care. Be sure to include the following: Specific measures that have been employed to address the problems
What is the present value of the annual cash flow : An investment, which is worth 22,000 dollars and has an expected return of 15.75 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow..
The marketable securities are not cash equivalents : Prepare the supporting schedule that should accompany the statement of cash flows in order todisclose the non cash aspects of the company's investing and financing activities.
The firms net capital spending : The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,425,000, $145,000 in the common stock account and $2,700,000 in the additional paid-in surplus account. The firm’s net capital spending for 2014 was $1,010,000, and the..
Reber company had a cash balance per books of : On May 31, 2014, Reber Company had a cash balance per books of $7,167.50. The bank statement from New York State Bank on that date showed a balance of $6,790.60. A comparison of the statement with the cash account revealed the following facts. Prepar..
Find the average cost and the marginal average cost function : What is the marginal cost when x = 1000 and 2000? Find the average cost function C‾ and the marginal average cost function C‾'.

Reviews

Write a Review

Business Economics Questions & Answers

  Two-person game- the dollar remains on the table

There is a dollar on the table, which each player can try to grab. If only one player grabs, G, and the other does not, D, the player who grabs gets the dollar and his payoff is 1, while the other player's payoff is 0.

  The manufacturer would then sell the returned cars

In the late 1990's, care leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the care. If the customer decided to keep the car, the c..

  Unfavorable to the trade partner

In what sense can this be said to be unfavorable to the trade partner. Does this mean that the welfare of the trade partner has definitely declined.

  Calculate the expected value of janes wealth

Jane obtains utility W1/2 from wealth W. Jane has $100, but there is a 25% chance she will require surgery which costs $64. calculate the expected value of Jane's wealth. calculate Jane's expected utility. what is Jane's certainty equivalent?

  Most effective way a firm can be competitive over time

The issue of competition over time presents a number of problems for a firm. Based on research for this question and personal experience, what do you believe is the most effective way a firm can compete over time? Your answer should address some of t..

  Problem set one1-price-elasticity

problem set one1-price-elasticity of

  Elucidate the long-run which will take place this industry

Utilize these new diagrams to Elucidate the long-run which will take place in this industry.

  Economic growth spreads evenly to the masses

Even though economic growth is occurring in sub-Saharan Africa, explain two strategies that should be used to enhance the likelihood that economic growth spreads evenly to the masses within Sub-Saharan Africa.

  Change in fiscal policy to changes in interest rates

Describe the mechanism that leads from a change in fiscal policy to changes in interest rates, the exchange rate, and the current account balance. Do the same for monetary policy.

  Supply affect equilibrium prices and quantity within market

Does each event change demand, supply, both, or neither? Explain your choice. Does the event increase or decrease demand and/or supply? Explain your answer. How does this change in demand and/or supply affect the equilibrium prices and quantity withi..

  Cross price elasticity of demand between apples and pears

What would be the percentage change in apple unit sales if the price of apples decreased by 10%? What would be the percentage change in apple unit sales if the price of pears increased by 5%? What would be the percentage change in apple unit sales if..

  Describe the pros and cons of the oligopolistic firms

Big pharmaceutical companies are oligopolies and as such their strategic decisions are influenced by the rival's actions. Describe the pros and cons of the oligopolistic firms in the healthcare sectors

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