User Account

All Pages

What is the present value of the cash flow stream

Assignment Help Finance Basics
Reference no: EM132390799

Consider the following uneven cash flow stream: (Hint: Drawing a timeline may help.)

Year                                      Cash Flow

Year 0 (Today)                           $0

Year 1                                    2,000

Year 2                                       0

Year 3                                     1,500

Year 4                                     2,500

Year 5                                     4,000

a. What is the present value (Year 0) of the cash flow stream if the opportunity cost is 10%?

b. Add an outflow (or cost) of $1,000 at Year 0 (Today). What is the net present value if the opportunity cost remains 10% and Year 1 - 5 are unchanged?

Reference no: EM132390799

Questions Cloud

Discussion on personal and professional social work values : Heterosexism is defined as "the discrimination or prejudice by heterosexuals against homosexuals" (merriam-webster.com) and is predicated on the belief.
What is clinic 2018 net income : Entries for the Clinic 2018 income statement are listed below in alphabetical order.
Explain process of creating and implementing a policy : As an astute social worker and professional policy advocate, once you have selected a social problem, you begin the process of creating and implementing.
What is project net present value : a. Assuming a capital cost of 10%, what is project's net present value (NPV)?
What is the present value of the cash flow stream : a. What is the present value (Year 0) of the cash flow stream if the opportunity cost is 10%?
Post a brief summary of the policy proposal : Post a brief summary of the policy proposal and its purpose that you created based on either Jose's or Iris's situation and the trade-offs you used to develop.
What is the hospital corporate cost of capital : Its cost of equity estimate is 10% and its cost of tax-exempt debt is 6.2%. What is the hospital's corporate cost of capital?
Brenton point health plan : What impact would the new capital structure have on Brenton Point Health Plan's
Explain misconceptions general population might have : Post a description of the findings of your research on the debate over ACA. Explain some of the misconceptions or misunderstandings the general population.

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!

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