Cash flows worth today than camerons cash flows

Assignment Help Financial Management

Reference no: EM131446843

Cameron is going to receive an annuity for 44 years of $31,596, and Kennedy is going to receive a perpetuity of that same amount. If the appropriate discount rate is 8%, how much more are Kennedy's cash flows worth today than Cameron's cash flows? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM131446843

Questions Cloud

General manager of firm that manufactures skate boards : you are the general manager of a firm that manufactures skate boards and your sales have dropped by 20% because of foreign competition. You will have to lay off 150 workers out of your 500 in order to stay profitable.

Duty of loyalty : Ally is a member and a manager of a manager-managed limited liability company called Movers & You, LLC, a moving company. The main business of Movers & You, LLC, is moving large corporations from old office space to new office space in other building..

What is the net present value of the project : You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows: Years Cash Flow 0 – 100 1–10 + 14 On the basis of the behavior of the firm’s stock, you b..

What is the amount of each monthly mortgage payment : Donaldson's purchased some property for $1.2 million, paid 25 percent down in cash, and financed the balance for 12 years at 7.2 percent, compounded monthly. What is the amount of each monthly mortgage payment?

Cash flows worth today than camerons cash flows : Cameron is going to receive an annuity for 44 years of $31,596, and Kennedy is going to receive a perpetuity of that same amount. If the appropriate discount rate is 8%, how much more are Kennedy's cash flows worth today than Cameron's cash flows?

What is the future value of your deposits at year : You plan to save for your retirement by depositing 15 payments of $10,000 into an account every other year. What is the 2-year effective interest rate? What is the future value of your deposits at year 29?

What was the operating cash flow : Last year, Webster Farms had annual revenue of $87,200, depreciation of $11,600, cost of goods sold of $54,700, and administrative expenses of $8,300. The firm paid $3,200 in dividends and paid taxes of $4,300. What was the operating cash flow?

Calculate the payback and net present value for project : A mfg company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500 each year thereafter. direct costs including labor and materials will be 45% of sales. Calculate the payback (P..

What is the minimum variance hedge ratio : A trader owns 55,000 troy oz of silver and decides to hedge with 6-month silver futures contracts. Each futures contract is on 5,000 troy oz. The spot price is $18.72 and the futures price $17.63 per troy oz. What is the minimum variance hedge ratio?..

User Account

All Pages