Compute the net present value of an investment

Assignment Help Financial Management

Reference no: EM13976134

Compute the net present value of an investment with 5 years of annual cash inflows of $100 and two cash outflows, one today of $100 and one at the beginning of the second year of $50. Use a discount rate of 10 percent.

$229.08

$287.60

$233.62

$271.53

Reference no: EM13976134

Questions Cloud

Standard deviation of monthly changes in the spot price : The standard deviation of monthly changes in the spot price of live cattle is (in cents per pound) 1.5. The standard deviation of monthly changes in the futures price of live cattle for the closest contract is 1.2. The correlation between the futures..

The amount by which a project increases the value of firm : The amount by which a project increases the value of the firm is given by which of the following?

Suppose a riskless project requires an initial investment : Suppose a riskless project requires an initial investment of $10 and will generate a one-time cash inflow of $30 two years later. Assuming a risk-free interest rate of 5%, which of the following statements about the project is NOT true?

Net income of net income-cash coverage ratio : Elddir, Inc. has net income of net income of 9000, a tax rate of 34%, interest expense of 2940 and deducted depreciation expense of 2730. What is Elddir’s cash coverage ratio?

Compute the net present value of an investment : Compute the net present value of an investment with 5 years of annual cash inflows of $100 and two cash outflows, one today of $100 and one at the beginning of the second year of $50. Use a discount rate of 10 percent.

Money market versus call option hedging : Money Market Versus Call Option Hedging. You expect that inflation in the United States will be 3%, versus 5% in the United Kingdom. The expected spot rate in one year is $1.8756. The spot rate of the pound as of today is $1.8000. Use the unhedged st..

Pays a nominal interest rate : You must make a payment of $1,619.01 in 10 years. To get the money for this payment, you will make 5 equal deposits, beginning today and for the following 4 quarters, in a bank that pays a nominal interest rate of 6% with quarterly compounding. How l..

What is the present value of your winnings : You have recently won the super jackpot in the Washington State Lottery. On reading the fine print, you discover that you have the following two options: a. You will receive 32 annual payments of $160,000, with the first payment being delivered today..

Financing costs and working capital requirements : Enterprise Free Cash Flows should include: Capital expenditures, Financing costs,Working capital requirements

User Account

All Pages