User Account

All Pages

Compute the future value of the cash flows

Assignment Help Financial Management
Reference no: EM131962447

Given the following data, use Excel's syntax (and show the formulas) to calculate the MIRR for a project with an expected economic life six years and a salvage value of $1,000 (the last data entry). The end-of-period cash flows are expected to increase at the rate of 10% per annum.

Project data:

outlay cost: -$10,000

Estimated end-of-period cash flows: -$2,000, $5,000, $4,000, $3,000, $5,000, and $1,000

To estimate the MIRR, compute the Future Value of the cash flows at the rate of ten per cent and solve for the discount rate that discounts this future value back to the present value of $10,000.

Please explain the process and the results in a written PROFESSIONAL MANNER.

Reference no: EM131962447

Questions Cloud

What is the required rate of return on stock : What is the required rate of return on this stock? That is, solve for r.
The dividend is expected to grow at some constant rate : The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)?
What is the stock expected price three years from today : The required rate of return on the stock is 14.4%. What is the stock's expected price 3 years from today (i.e. solve for P3)?
Compute the future value of the cash flows : compute the Future Value of the cash flows at rate of ten per cent and solve for discount rate that discounts future value back to value of $10,000.
Compute the future value of the cash flows : compute the Future Value of the cash flows at rate of ten per cent and solve for discount rate that discounts future value back to value of $10,000.
Lenders take all the interest rate risk : Which of the following is the same synthetic position as short stock, long call? For CAM loans, lenders take all the interest rate risk.
What is beas unlevered beta : What is BEA's unlevered beta? Use market value D/S (which is the same as wd/ws) when unlevering. What are BEA’s WACC and total value of the firm with 45% debt?
What quarterly payment will the friend make on the loan : The deal calls for a 6.92% APR “loan” rate with quarterly compounding. What quarterly payment will the friend make on the loan?
Find the expected future spot exchange rate : Find the expected future spot exchange rate using the interest rate parity. What is the delta of the bank’s long futures position?

Reviews

Write a Review

Financial Management Questions & Answers

  Analyzing the lending policies applied in commercial banks

Analyzing the lending policies applied in commercial banks. Company (X) is asking for a SR 45 million line-of-credits for a period of 18 months.

  When cash outflows temporarily exceed cash inflows

When cash outflows temporarily exceed cash inflows, banks are most likely to experience:

  Present value for a cash flow stream

Current share price is $25, most recent dividend is $1.25, so dividend yield is 5%. Net income is $2 million. A $1.20 dividend is paid to the 1 million shareholders. Retained earnings is $200,000. Present value for a cash flow stream of $300 per year..

  Determine the cost to replace company property-plant

A person needs to determine the cost to replace a company's property, plant, and equipment using the replacement cost method. Which value does this person need to consider in order to make this determination?

  Explain the importance of reports to an organization

Explain the importance of Reports to an organization. Who typically reads the reports, and what use is made of reports? Who is responsible for delivering the content of reports?

  Using damodarans preferred country risk premium model

Using Damodaran's preferred country risk premium model, find the percentage change in price.

  Use the free cash flow method of valuation

Use the Free Cash Flow method of valuation and the following data, to calculate the value for a venture with the following information.

  Compute the real exchange rate

Compute the real exchange rate for Kenya shillings against the uganda shillings in 2015.

  Firm is considering investing in project with cash flows

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9%.

  Accordance with his cash requirements forecast

Weyman Z. Wannamaker is the chief financial officer of Cogburn Company. He prides himself on being able to manage the company’s cash resources to minimize the interest expense. Consequently, on the second business day of each month, Weyman pays down ..

  Participate in money-and bond markets and equity securities

How institutional investors and individuals participate in money, stock, and bond markets, and equity securities?

  Firm is interested in mixed globalized strategy

A CEO of an international firm is interested in a "mixed" globalized strategy for a firm

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd