What is the total present value of these cash? flows

Assignment Help Financial Management
Reference no: EM131190195

Jennifer presents a business plan to her? bank's loan officer that predicts net cash flows for the first three years of? $10,000, $15,000, and? $8,000 respectively. If these cash flows occur at the end of each year and the discount rate is? 4%, what is the total present value of these cash? flows? (Round to the nearest whole ?dollar)

Reference no: EM131190195

Questions Cloud

The company would pay for health insurance : Jim worked for AAA Job Shop, Inc. for over 30 years. Two months before Jim retired, the head of human resources told Jim that the company would pay for health insurance for Jim and his wife for the remainder of his life, and for his wife’s life if sh..
Calculates how much money you''ll end up : Write a program that calculates how much money you'll end up with if you invest an amount of money at a fixed interest rate, compounded yearly.
Problem regarding the capm equation : Use the CAPM equation in order to find out what is the present 'cost of equity' of your company? Explain what is the meaning of the 'cost of equity'.
What is your best estimate of the company cost of equity : Suppose Pat, Ltd. just issued a dividend of $2.50 per share on its common stock. The company’s dividends have been growing at a rate of 5%. If the stock currently sells for $65, what is your best estimate of the company’s cost of equity?
What is the total present value of these cash? flows : Jennifer presents a business plan to her? bank's loan officer that predicts net cash flows for the first three years of? $10,000, $15,000, and? $8,000 respectively. If these cash flows occur at the end of each year and the discount rate is? 4%, what ..
Prepare a document that guides client in program preparation : Prepare a document that guides your client in program preparation and includes an example console program. The console program must verify the age of a customer attempting to make an online purchase. The program must prompt the customer for his or..
Distinguish between the riparian rights doctrine : Use a simple sketch to show the location of the parcel described as ”the NW ¼ of the NE ¼ of the SE ¼ of the SE ¼” of a section. How many square feet dose the parcel contain? Distinguish between the riparian rights doctrine and the prior appropriatio..
Exchange rate of the us dollar and the chinese yuan : Examine the exchange rate of the US dollar and the Chinese yuan for the last 24 months. Explain the major overall changes that have occurred and speculate on the key economic variables that most likely have influenced the exchange rate movements...
Implement the lms adaptive filter algorithm : ELECENG 7015 - Adaptive Signal Processing, 2016 - Implement the LMS adaptive filter algorithm for interference cancellation in matlab and investigate what the effect of adaptive filtering has on the EEG signals and whether we can conclude that adap..

Reviews

Write a Review

Financial Management Questions & Answers

  Agreement to share profits in partnership

Where there is no agreement to share profits in a partnership, but one partner invested twice as much capital in the partnership as the other over the course of the year, how are profits to be split?

  Value of the company equity and the debt-to-value ratio

Edwards Construction currently has debt outstanding with a market value of $370,000 and a cost of 6 percent. The company has an EBIT of $22,200 that is expected to continue in perpetuity. Assume there are no taxes. What is the value of the company’s ..

  What is the break-even cost per kilowatt-hour

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.47 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs ..

  Compute the NPV for project huron

Based on the cash flows shown in the chart below, compute the NPV for Project Huron. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.

  Major diference between an option and futures contract

Discuss the generalization that an option's time premium is positive. What is the major diference between an option and a futures contract?

  What monetary and fiscal policies

What monetary and fiscal policies might be prescribed for an economy in a deep recession and choose an industry and identify the factors that will determine its performance in the next 3 years. What is your forecast for performance in that time per..

  Income from continuing operations

Wilcox Corporation had income from continuing operations of $750,000 (after taxes) in 2014. In addition, the following information, which has not been considered, is as follows. In 2014, Wilcox experienced an uninsured earthquake loss in the amount o..

  The inflation rate expected for the coming year

Because of a recession, the inflation rate expected for the coming year is only 3%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3%. Assume that the real risk-free rate is r* 5 2% for all maturit..

  What is the effective annual rate and shop report

Ricky Ripov’s Pawn Shop charges an interest rate of 16 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. Requirement 1: What rate should the shop report? What is the effective annual rate?

  What is the equivalent cost per mile for the new company

A company’s technicians do many service calls to their customers’ sites and have been using their own cars, for which the company reimburses them at a rate of $0.56 per mile. A technician travels an average of 35,000 miles per year. If the interest r..

  What will be effective real rate of return on bank account

A bank account promises a 6.7% annual interest rate on deposits. At the same time, the rate of inflation is expected to be 2.1%. What will be the effective real rate of return on the bank account?

  What will be the after-tax cash flow of this sale

Suppose you sell a fixed asset for $111,000 when it's book value is $127,000. If your company's marginal tax rate is 35%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

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