What is the present value of the cash flow pattern

Assignment Help Finance Basics
Reference no: EM131369322

Question

You have been offered the opportunity to invest in a project that will pay $2,703 per year at the end of years one through three and $10,144 per year at the end of years four and five. If the appropriate discount rate is 11.3 percent per year, what is the present value of this cash flow pattern?

Reference no: EM131369322

Questions Cloud

Explain the differences and focus of mis systems : MBALN-736A Enterprise Information Systems - Explain the differences and focus of MIS systems and KMS systems. Research online, present a specific company that most benefits from each type of system, analyse how each company uses the system and expl..
How much should he set aside today for the purchase : The car will cost $54,626 at that time. Assume that Stephen can earn 5.89 percent (compounded monthly) on his money. How much should he set aside today for the purchase?
Vendor is proposing their new equipment : A vendor is proposing their new equipment which would allow you to assemble 2000 widgets per day. What would the new takt time be? Keep two decimal places in your answer.
Calculate the present value of payment option : (a) Calculate the present value of each payment option, assuming the interest rate is 12%. (b) Then, calculate the present values based on an interest rate of 5%. (c) Compare your answers and explain why they are different when the interest rate chan..
What is the present value of the cash flow pattern : You have been offered the opportunity to invest in a project that will pay $2,703 per year at the end of years. What is the present value of this cash flow pattern?
Find the median and the first and third quartiles : The following data are annualized returns on a group of 15 stocks.- Find the median, the first and third quartiles, and the 55th and 85th percentiles for these data.
Write stepwise command for each challenge : Write stepwise command for each challenge. Please describe each command line used. Type in the Output for each challenge
Product life cycle helps marketers understand market trend : The product life cycle helps marketers understand market trend patterns related to all of the following except. Southwest Airlines sends an e-mail to frequent-flier customers offering a special low price between selected cities if the plane ticket is..
Create a detailed three step system for completing research : Legal professionals widely agree that there is no single "right" path to take in conducting legal research. As such, each paralegal must devise his or her own strategy. Imagine that your supervising attorney has asked you write a report detailing ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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