Which cash flow streams has the higher present value

Assignment Help Finance Basics
Reference no: EM132049734

Question: Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,700 per year for eight years, whereas Investment Y offers to pay you $6,700 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent?

Reference no: EM132049734

Questions Cloud

Discuss stories about social engineering attacks : ind an attack that was successful and describe how it could have been prevented.
Closest approximation of the lattice energy of naf : Which of the following values is the closest approximation of the lattice energy of NaF: 682 kJ/mol, 794 kJ/mol, 924 kJ/mol, 1588 kJ/mol, or 3175 kJ/mol?
What is the present value of the same annuity due : If the present value of an ordinary, 6-year annuity is $6,200 and interest rates are 7.5 percent, what's the present value of the same annuity due?
Calculate the final temperature of the gas : Calculate the final temperature of the gas, in Kelvins, if the pressure is increased to 124 kPa and the volume decreases to 5.00 L.
Which cash flow streams has the higher present value : Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,700 per year for eight years, whereas Investment Y offers to pay you $6,700.
Prepare an income statement for the current year : Kenzi Kayaking, a manufacturer of kayaks, began operations this year. Prepare an income statement for the current year under variable costing
What will be the volume of the gas if the temperature : A sample of nitrogen gas has a volume of 2.5 L at SATP. What will be the volume of the gas if the temperature is cooled to - 30.5 degrees celsius.
Compute the break-even point in dollars : Presented below are variable costing income statements for Diggs Company and Doggs Company. They are in the same industry, with the same net incomes.
What is the fixed volume of gas has a pressure : What is the fixed volume of gas has a pressure of 700 kPa at 127 degrees celsius, what is the pressure at 26.1 degrees celsius?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the liquidity premium on niendorf bonds

The maturity risk premium for all bonds is found with the formula MRP = (t ? 1) ? 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds?

  Arithmetic average returns for large-company stocks

Calculate the arithmetic average returns for large-company stocks and T-bills over period

  What do the initials rvu stand for

The three components of work, overhead (practice expense), and malpractice are part of an RVU. What do the initials RVU stand for?

  According to the irr decision rule

A project has the following incremental cash flows for years zero through year 5, respectively: -$2,500, $800, $600, $700, $400 and $300. If the firm's cost of capital is 8%, according to the IRR decision rule, should the firm accept or reject t..

  What is the monthly payment

Suppose you purchase a home for $90,000 by paying a 20% down payment and signing a 30 year mortgage. The fixed annual rate is 6% compounded monthly. After 20 years the market value is expected to be $125,000.

  Questions for the competitive footwear industry

Please answer the following questions for the competitive footwear industry that you are participating in as part of the BSG simulation for your DB post:

  What is the net cost of the machine for capital budgeting

What is the net cost of the machine for capital budgeting purposes? (That is, what is the Year 0 net cash flow?) What are the net operating cash flows in Years 1, 2, and 3? What is the terminal year cash flow? If the project's cost of capital is 12 ..

  How much did the investor lose on the purchase of the bond

An investor buys a $1,000, 20 year 7 percent (interest paid semiannually) bond at par. After five years have passed, interest rates are 10 percent. How much did the investor lose on the purchase of the bond?

  Briefly describe the historical developments that led

Briefly describe the historical developments that led to floating exchange rates as of 1973.

  What is the value of the firm

If the tax rate is 35 percent, what is the value of the firm? Note: Use the M&M proposition I formula with taxes but without any debt. (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

  Persons for the purpose of the gstt

Who among the following would be skip persons for the purpose of the GSTT? Bill is the transfer and is 82 years old.

  Comparison of olb and market value approach

Five years ago, you took out a $120,000, 30-year mortgage at 9% interest, with no prepayment penalty. Today you can get a 25-year mortgage at 7% with 2 points.

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