What is the present value of these cash flows

Assignment Help Finance Basics
Reference no: EM13279001

Assume that you will receive $2,000.00 a year in year 1 through 5; $3,000.00 a year in years 6 through 8; and $4,000.00 in year 9. All of the cash flows will be received at the end of the year. If you require a 14% rate of return, what is the present value of these cash flows? Please show calculations.

Reference no: EM13279001

Questions Cloud

State rotational symmetry axes in the staggered conformation : Describe all the symmetry planes in the staggered conformation of ethane. Draw a figure and arrows to show any rotational symmetry axes in the staggered conformation of ethane.
Find the center-frequency gain of single-tuned amplifier : The transistor is biased at 1mA and has ß=100, Cp=10pF, and Cµ=1pF. The transistor load is a resistance of 5kO. Find fo, Q, the 3-dB bandwidth, and the center-frequency gain of this single-tuned amplifier.
What are the portfolio weights of each stock : An investor owns $10,000 of Adobe Systems stock, $15,000 of Dow Chemical, and $25,000 of Office Depot. What are the portfolio weights of each stock?
Human resource professionals must be proactive : Human Resource professionals must be proactive in order to be able to meet all of the challenges of the 21st Century. What are some of the changes to the work force environment that you see looming on the horizon?
What is the present value of these cash flows : Assume that you will receive $2,000.00 a year in year 1 through 5; $3,000.00 a year in years 6 through 8; and $4,000.00 in year 9. All of the cash flows will be received at the end of the year. If you require a 14% rate of return, what is the pres..
Find parameters of steam and pipe : Steam enters a circular pipe at 1600 kPa, 400 oC and 10 m/sec and exits at 1000 kPa and 32 m/sec. find parameters of steam and pipe
Write a sas program that first creates variables : Write a SAS program that first creates three variables: RF, RM, and R. Assign R the value 0.04, RM the value 0.12 and R the value 0.14. Before proceeding, use the video's PROC PRINT procedure to make sure you have done the DATA step correctly.
Derive the ber-bit error rate of a 8-pam system : derive the BER (Bit Error Rate) of a 8-PAM (Pulse Amplitude Modulation) system in an AWGN (Additive White Gaussian Noise) channel.
What will the price be in 6 years : The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.40 per share on its stock. The dividends are expected to grow at a constant rate of 8 percent per year indefinitely.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculating real rate using nominal rate and inflation rate

Assume nominal rate is 14.62% and inflation rate is 5.49%. Solve for the real rate.

  Compute the coefficient of variation

Greengage, Corporation, a successful nursery, is planning several expansion projects. All of the alternatives promise to produce an acceptable return.

  Hich of the following is most likely to be the market value

You currently hold a $1,000 corporate bond; however, if interest rates in the overall economy increase, which of the following is most likely to be the market value of this bond?

  Calculate firms cost of new equity

Your firm stock sells for $50 per share, its last dividend was $2, its growth rate is a constant 5%, and the company will incur a floating rate cost of 15%

  What is the expected rate of return on a stock with a beta

The risk-free rate of return is 4.6 percent and the market risk premium is 12 percent. What is the expected rate of return on a stock with a beta of 1.2?

  Project evaluation using wacc

Jake's Bunker (Bob's Country Bunker), a chain of economically priced motels in the Midwestern United States has reviewed its current target structure of 40% debt and 60% equity.What is the cost of common equity? What is the WACC?

  What is the effective annual rate on this loan

You want to buy a new sports coupe for $73,800, and the finance office at the dealership has quoted you a 6.2 percent APR loan for 60 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?

  What will be tip-top''s cost of equity

1. The Tip-Top Paving Co. wants to be levered at a debt to value ratio of .6. The cost of debt is 11%, the tax rate is 34%, and the cost of equity for an all equity firm is 14%. What will be Tip-Top's cost of equity?

  Information about valuation models

Acort Industries owns assets that will have an 60% probability of having the market value of $55 million in one year. What is the expected return of Acort's equity without leverage? What is the expected return of Acort's equity with the leverage?

  What is the current value of the property

A rental property is providing an acceptable market rate of return of 13%. You expect next year's rent to be $1.0 million and that rent is expected to grow at 3% per year forever. What is the current value of the property?

  Economic functions financial intermediaries perform

Suppose you have been asked to write a report for a group of new stock brokers about the American Stock Exchange and the NASDAQ.

  Which strategy works best if a bidding war erupts

If you were Smith's financial advisor, which strategy would you advise he establish? Or would you argue that he not speculate on this takeover?

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