Calculate the value of the technology today

Assignment Help Finance Basics
Reference no: EM132648612

Tom Tom Co. has been working on new technology. This new technology will be available in the near term, and the firm's CEO anticipates the first cash flow to be $300,000, received 5 years from today. Subsequent annual cash flows will grow at 3% in perpetuity. Calculate the value of the technology today if the discount rate is 12%?

Reference no: EM132648612

Questions Cloud

What is the amount of manufacturing overhead allocated : What is the amount of manufacturing overhead allocated to the completed job (round your intermediate calculations to one decimal place)?
Identify the Federal income tax issues that Pete faces : The company generated a $74,000 NOL in 2018 and another NOL of $43,000 in 2019. Identify the Federal income tax issues that Pete faces
What was the cost of goods manufactured for august : SAR 50,000, ending finished goods of SAR 60,000, and cost of goods sold of SAR 465,000. What was the cost of goods manufactured for August?
Evaluate academic literature : Summarise, analyse and evaluate the literature - Well structured (presentation and organisation) and correct referencing - Discuss the different solutions
Calculate the value of the technology today : Subsequent annual cash flows will grow at 3% in perpetuity. Calculate the value of the technology today if the discount rate is 12%?
Explain variable costing with examples : Explain Variable costing with examples. Explain cost per unit with examples. Explain Absorption costing. Explain periods cost. Explain product cost.
What is the firm debt to equity ratio : If a firm has a debt ratio (i.e., D/A) of 24%, what is the firm's debt to equity (i.e., D/E) ratio?
How would her Federal income tax liabilities change : If Blue reduces her salary to $50,000 and takes an additional $60,000 as a cash distribution, how would her Federal income tax liabilities change
Describe difference between risk tolerance vs risk appetite : An information technology (IT) security policy framework is the foundation of an organization's information security program. Organizations use these documents.

Reviews

Write a Review

Finance Basics Questions & Answers

  How many yen could one u.s. dollar buy tomorrow

Suppose 144 yen could be purchased in the foreign exchange market for one U.S. dollar today. If the yen depreciates by 23.0% tomorrow, how many yen could one U.S. dollar buy tomorrow?

  Within the discussion board area write 400ndash600 words

within the discussion board area write 400ndash600 words that respond to the following questions with your thoughts

  What would the depreciation expense be each year under each

wendy is evaluating a capital budgeting project that should last for 4 years. the project requires 800000 of

  Affect the demand for loanable funds in the united states

How would the Many U.S. cities increase business taxes to help close their budget deficits events affect the demand for loanable funds in the United States?

  What is the average rate of return of your investment

Over the last 3 years you earned 5%, 7% and 9%. What is the Average rate of Return of your investment?

  Discuss the various functions of central banks

Discuss the various functions of Central banks and how it is contributing to the economic activity of the country.

  Determine the profile of the investor

Determine the profile of the investor for which this company may be a fit, relative to that potential investor's investment strategy. Provide support for your rationale.

  What changes have occurred in the human service sector

what changes have occurred in the human service sector that have made government and private contributors more

  Can a value of a going concern company be determined

Can a value of a going concern company be determined objectively? How?

  Determining the non-deposit liabilities

Suggest what you believe to be the most significant advantages and risks that the pursuit of liability management brings to a borrowing institution.

  What is the working average cost of capital

Consider a company financed with 0.9 equity, 0.1 preferred stock, and the remaining debt subject to a corporate tax rate 0.4

  What is the total consumer surplus

Assuming that those two observations (cost per visit and number of visits per in- habitant of cityA, and cost per visit and number of visits per inhabitant.

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