What is the present value of the savings

Assignment Help Financial Management
Reference no: EM13972039

Your company will generate $57,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.8%, what is the present value of the savings?

Reference no: EM13972039

Questions Cloud

Read and the system call : In the example given in Fig. 1-17, the library procedure is called read and the system call itself is called read. Is it essential that both of these have the same name? If not, which one is more important?
What questions does the article leave unanswered : Explain if these studies were observational, experimental, technological or some combination of the three. If applicable, identify the independent and (at least one) dependent variables. What possible confounding variables are present in the stud..
Identifies the major social institutions in society : Write a 700- to 1,050-word essay explaining the content of the video based on your assigned sociological theoretical approach. Prepare an introduction that identifies the major social institutions in society and why they are important. Describe each ..
Tax laws are based on several important doctrines : The assignment of income doctrine - states that income must be taxed to the entity that renders the service or owns the capital with respect to which the income is paid. The economic substance doctrine - holds that a transaction that changes the taxp..
What is the present value of the savings : Your company will generate $57,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.8%, what is the present value of the savings?
How much will you have if you make deposits : If you deposit $4,000 at the end of each of the next 20 years into an account paying 9.7 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years?
Fixed rate mortgage to buy a new home : You need a 30-year fixed rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at an APR of 5.25 % for this 360 month loan, However you can afford monthly payments of only $975, so you offer to pay off any remaining..
Callaway prepays insurance on march 31 each year : Depreciation for the current year includes Office Furniture, $1,000 and Equipment, $2,700. Make a compound entry. Callaway prepays insurance on March 31 each year. At December 31, $600 is still prepaid. Callaway pays employees each Friday. The amount..
Which factor does not influence voting practices : Which factor does not influence voting practices? Which term describes the assignment of students to specific education programs and classes on the basis of test scores, previous grades, or perceived ability

Reviews

Write a Review

Financial Management Questions & Answers

  The risk that mortgages will prepay quicker than investors

The risk that mortgages will prepay quicker than investors would like is called (???) risk and is associated with (???) market interest rates. The risk that mortgages will prepay slow than investors would like is called (???) risk and is associated w..

  Consider the mean-variance portfolio optimization

Consider the mean-variance portfolio optimization with n risky assets, but no short sales. Write down the first order optimality conditions of the problem. Can you characterize the set of efficient portfolio?

  Effective costs of trade credit to nondiscount customers

Grunewald Industries sells on terms of 3/10, net 50. Gross sales last year were $4,131,000, and accounts receivable averaged $482,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of ..

  Zero estimated salvage value on straight-line basis

Mom’s Cookies, Inc., is considering the purchase of a new cookie oven. The original cost of the old oven was $41,000; it is now five years old, and it has a current market value of $18,000. The old oven is being depreciated over a 10-year life toward..

  Variable costs and fixed costs at volume

A company has $6.20 per unit in variable costs and $4.90 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.42, what price should be charged if 66,000 units are expected to be sold?

  What is the profitability index if the discount rate

The Company X. is currently considering a project that will produce cash inflows of $12,000 a year for three years followed by $6,500 in year four. The cost of the project is $38,000. What is the profitability index if the discount rate is 7 percent?

  Difference in firms current assets and current liabilities

This is defined as the difference between a firm’s current assets and current liabilities.

  The opportunity to purchase investments

Tom has the opportunity to purchase investments that will pa $30,000 in 5 years. The purchase price of the investment today is $18,000. Should he make the purchase if he can earn 10% on his investments?

  Orecasted the growth rates for the next three years

ProCor, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. The company then expects to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.54 last week. ..

  Memorandumtonbspnbspnbspnbspnbspnbsp nbspnbsp management

memorandumtonbspnbspnbspnbspnbspnbsp nbspnbsp management analystfromnbspnbsp nbspnbsp beverly bunchbb budget

  The payments are made monthly

You take out a 4 year car loan for $18,000. The loan has a 4% annual interest rate. The payments are made monthly. What are the monthly payments?

  An umbrella liability policy

An umbrella liability policy:

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