Calculate the value of the cash flows today

Assignment Help Finance Basics
Reference no: EM13658698

1. An investment project will pay your firm $2,000 per year. The first payment will come 3 years from today and the last payment will be received 33 years from today. If the discount rate is 12% per year, calculate the value of the cash flows today?

2. A loan shark offers you a loan of $500 today but you must pay back $550 in a month. What is the effective annual rate they are charging?

3. Starting next week, you will make deposits of $200 every week into a savings account which earns 0.15% per week. You currently have $11,400 in that account. How much do you have in your account in 5 years?

4. You will make annual deposits of $5,000 into a retirement account that pays 12% compounded weekly. How much will you have in your account in 30 years?

Reference no: EM13658698

Questions Cloud

An average collection period : Mr. Husker's Tuxedos Corp. ended the year 2015 with an average collection period of 34 days. The firm's credit sales for 2015 were $56.3 million.
What is the galaxys speed relative to the earth : When viewed by an observer on the Earth, light from a distant galaxy is Doppler shifted to the red such that the ratio of then shifted frequency to the observed frequency is 2.6. What is the galaxy's speed relative to the Earth?
How the initiative affects the organization financial plan : My bullet is How the initiative affects the organization's financial planning
Discover the maximum emf and current induced in the coil : An AC generator consists of 8 turns of wire in a loop or coil, the cross-sectional area of the loop is A=0.09 m2, with a total resistance of 12Ω. The loop is rotating in a magnetic field B=0.5T at a constant rate of 60Hz.
Calculate the value of the cash flows today : Calculate the value of the cash flows today?
Compute the maximum power delivered to the block : Energy is transferred to a block of wood by a force at a rate given by: Compute the maximum power delivered to the block and when it occurs.
How much will the equal monthly payments be : How much will the equal monthly payments be?
Base of the wall without the ladder straight away slipping : A uniform ladder whose length is 5.0 m and whose weight is 400 N leans against a frictionless vertical wall. The coefficient of static friction among the level ground and the foot of the ladder is 0.37.
The binomial option price for an american call option : The binomial option price for an American call option

Reviews

Write a Review

Finance Basics Questions & Answers

  What is internal rate of return

Project cost $23 million, generate cash flows $14,000,000, $11,750,000 and $6350,000 over next 3 years. Cost of capital is 20%. what is internal rate of return?

  Define financial markets and share experiences

Define financial markets and share experiences you have had with at least one type of financial market or institution. Discuss and explain the main functions that market or institution performs.

  Review the transactions for smith construction for the

review the transactions for smith construction for the month of june in the excel template. the balances from may have

  The price of garner stock is 40 there is a call option on

the price of garner stock is 40. there is a call option on garner stock that is at the money with a premium of 2.00.

  Explain the usefulness of comparative financial statement

comparative analysis is an important tool in financial analysis.a. explain the usefulness of comparative financial

  What is the present value of john savings

John West is 40 years old. He is a young executive and his salary is $1 mil a year. His income is expected to grow at 10% for every year he works. John wants to retire at 55 and he wants to save 20% of his salary every year. John can invest at 7%.

  Find the investment amount

Mark wants to buy a new car in three years. The car is expected to cost 80,000 in 3 years. If Mark can find an investment yielding 12% over the three year period,

  What stock price would you consider appropriate

The Sleeping Flower Co. has earnings of $1.75 per share. The benchmark PE for the company is 18. What stock price would you consider appropriate? What if the benchmark PE were 21?

  Video toys manufacturers and sells arcade games dividends

video toys manufacturers and sells arcade games. dividends are currently 1.50 per share and are expected to grow at a

  How much will you have to give the customer in 3 years

At the end of 3 years you need to return the deposit and the interest to the customer. How much will you have to give the customer in 3 years?

  How much will the insurer pay for each of these losses

while waterskiing at a cost of $10,000, on December 5, 2004 Nick underwent eye surgery at a cost of $5,000, and on January 5, 2005 Brent was treated for a broken leg at a cost of $2,000. How much will the insurer pay for each of these losses?

  What is the yield to maturity of the d&l bond

The 7 percent annual coupon bonds of D&L Movers have a market price of $877.99, a face value of $1000, and 15 years until the maturity whild equivalent government debt trades at 5% yield.

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