Calculate the present value of each cashflow

Assignment Help Finance Basics
Reference no: EM132743741

1. Ms.Candelaria deposited PhP7000 at the end of each month of the calendar year 2019 in an investment account of 9% annual interest rate. Calculate the future value of the amount invested on December 31, 2020. Compounding is done on monthly basis.

2. Calculate the present value of each cashflow using a discount rate of 7%.Which do you prefer most? Show and explain all supporting calculations.

Cashflow A: receive PhP3,000 today and then receive PhP3,000 in four years.

Cashflow B: pay PhP2,500 every year for five years, with the first payment being next year, and then receive PhP1,500 every year for 20years.

Reference no: EM132743741

Questions Cloud

Standard deviation of an equally-weighted portfolio : Suppose two assets A & B are uncorrelated, with standard deviation of returns equal to s each.
What an investment is usually accounted : What an investment is usually accounted for by using the equity method if the ownership percentage is? more than 75%. / between 50%-75%.
Annualized percentage rate : How would you immunize the liability using 5-year zero coupon bonds and perpetuities paying annual coupons, each currently yielding 3%?
How make sure the premiums paid by departments are : Government that sets up an internal service fund for self-insurance purposes (risk financing) must make sure the premiums paid by departments are
Calculate the present value of each cashflow : Calculate the present value of each cashflow using a discount rate of 7%.Which do you prefer most? Show and explain all supporting calculations.
What amount will Mamama report as total notes payable : What amount will Mamama report as total notes payable relating to its assignment transaction in its December 31, 2010 statement of financial position
Calculate product cost of product x using variable cost : Babar Ltd of past year, Calculate product cost of product X using absorption cost . Calculate product cost of product X using variable cost
What the value assigned to the ending inventory would be : Kwafja Ltd. made only three purchases of a particular item of merchandise during its first year of operation. Each purchase was for 100 units and the prices.
Calculate jd debt ratio : JD's Music Shop is thinking about extending the shop onto the back of its existing building for more storage. He plans to apply for a new loan

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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