What is the present value of the stream of payments

Assignment Help Financial Management
Reference no: EM131013324

Suppose that you will receive the annual payments of 10000 for a period of 10 years. The first payment will be made 4 years from now. if the interest rate is 5% what is the present value of the stream of payments.

Reference no: EM131013324

Questions Cloud

Estimate the volume v of the mound by computing the average : Estimate the volume V of the mound by computing the average of the two Riemann sums4,3 with lower-left and upper-right vertices of the sub rectangles as sample points.
How the project costs are influenced by the quality : Compare and contrast top-down versus bottom-up estimating and discuss how the project costs are influenced by the quality and accuracy of estimates.
Explain the theory of contingency leadership : What are the implications for motivation of Hofstede's research findings on the dimensions of power distance, uncertainty avoidance, individualism, and masculinity?
The market porfolio and the risk-free asset : You are given the following information concerning three portfolios, the market porfolio, and the risk-free asset: Portfolio X 12% Rp 29% Op 1.25 Bp Portfolio Y 11% Rp 24% Op 1.10% Bp Portfolio Z 8% Op 14% Op .75 Bp Market 10 Rp 19 Op 1.00 Bp Risk-fr..
What is the present value of the stream of payments : Suppose that you will receive the annual payments of 10000 for a period of 10 years. The first payment will be made 4 years from now. if the interest rate is 5% what is the present value of the stream of payments.
Calculate the revised material handling costs : Calculate the material handling rate that would have been used by Eloise Smith's predecessor at East Coast Marine - calculate the revised material handling costs to be allocated on a per purchase order basis.
Find the present value of each one of the cash flows : Find the present value of each one of the following cash flows. Assume that an 8% interest rate is appropriate for all discounting. Show how you would do this on your financial calculator as well as by hand.
About the retirement fund : Your aunt and uncle have asked your help in setting up their estate plan. They currently have $3,000,000 in their retirement fund. They wish to know the maximum amount that they can withdraw each month over a twenty-five year period and still have $8..
How did they and their families adapt : Interview one or more managers who have held positions over- seas. Try to find a man and a woman. Ask them about their experiences both in the working environment and in the foreign country generally. How did they and their families adapt?

Reviews

Write a Review

Financial Management Questions & Answers

  How long will it be before you have enough to buy the car

You’re trying to save to buy a new $225,000 Ferrari. You have $38,000 today that can be invested at your bank. The bank pays 4.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

  Provisions of the sarbanes-oxley act

Free Enterprise Fund v. Public Company Accounting Oversight Board" How does the decision in this case impact the validity of the Board and other provisions of the Sarbanes-Oxley Act?

  What is a durable power of attorney

What is a Durable Power of Attorney? Find an example of the basic terms and submit with your explanation.

  New mortgage has quoted interest rate

Steve and Laurie bought a house in Edmonton exactly 5 years ago. They took out a mortgage for $400,000 at that time. The mortgage had a 25-year amortization period, monthly mortgage payments, and a quoted interest rate of 8% (APR, semi-annually compo..

  What are the extreme points of the feasible region

Are there any slack values? Are there any surplus values? What are the extreme points of the feasible region?

  Initial investment-cash inflow-calculate net present value

Calculate the net present value of a 20 year project with an initial investment of $15,000 and a cash inflow of $2,000 per year. Assume that the firm has an opportunity cost of 17%.

  Consider risky portfolio-cash flow derived

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $150,000, with equal probabilities of .5. The alternative risk less investment in T-bills pays 5%. If you require a risk premium of 10%, how mu..

  Projects npv is more sensitive to changes in wacc

Project S and L both have an initial cost of $10,000 followed by a series of positive cash inflows. Project S's undiscounted net cash flows total $20,000, while L's total undiscounted flows are $30,000. At a WACC of 10% the two projects have identica..

  What do you recommend to ducati top management to do next

Do you think that Ducati's decision to sell exclusively through the Internet its MH900e motorcycle model was a risky decision or a safe bet? Explain.

  Bond transactions on your statement of cash flows

For this discussion, assume the role of a business owner who has to make a decision to raise additional capital. What considerations would you evaluate relative to issuing bonds as compared with conventional financing methods? How would you reflect t..

  Analyze the balance sheet and income statement

Case Study: Publix Super Markets, IncIn preparing your written case analysis, follow the steps outlined below. Identify the company's financial position:Analyze the balance sheet, income statement and statement of cash flows

  What was the cash flow to stockholders for the year

The 2013 balance sheet of Maria's Tennis Shop, Inc., showed $670,000 in the common stock account and $5.9 million in the additional paid-in surplus account. The 2014 balance sheet showed $705,000 and $6.8 million in the same two accounts, respectivel..

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