Calculate the present value of each of the cash-flows

Assignment Help Financial Management

Reference no: EM131928889

Calculate the present value of each of the following cash-flows.

$25,000 received at the end of 5 years at an expected rate of return (ERR) of 8%

$5,000 received at the end of 2 years and $12,000 received at the end of 5 years with an ERR of 7%

$1,200 received at the end of each of the next 10 years with an ERR of 9%

$1,500 received at the end of each of the next 5 years, with final payout of 25,000 at the end of the 5th year. Assume an ERR of 8%

Your investment has a 70% chance of a return of $1,000,000 at the end of 5 years, a 20% chance of returning $500,000 and a 10% chance of $0 return. Assume an ERR of 7%.

Reference no: EM131928889

Questions Cloud

Thinking about bio-metric authentication : Thinking about bio-metric authentication, list three reasons why people may be reluctant to use bio-metrics.

What are the main arguments and do you find them convincing : What are the main arguments? Do you find them convincing? Why or why not? How do these texts relate to larger themes and topics of the course?

Risk management in construction project : PPMP20015 RESEARCH IN PROJECT MANAGEMENT - a review of four scholarly articles relating to a project management field of your choice

Prepare a summary of the article : Prepare a summary of the article. As you read the article, pause after each paragraph and jot down the main point of that paragraph.

Calculate the present value of each of the cash-flows : Calculate the present value of each of the following cash-flows.

Types of control structures : There are many types of control structures. Why are control structures important? Are control structures universal to all programming languages? Why?

Why is data encryption so important : Describe why is data encryption so important for a company that is trying to keep their customers data private with the use of Super Computers.

The system of fixed exchange rate : Eventually, the system of fixed exchange rate under the Bretton Woods Accord collapsed when

Write about dominican republic tourisms : Write about Dominican Republic Tourism's and the effect it's development has on the environment. Also include most important concepts in this page.

User Account

All Pages