Compute the present value of a stream of cash flows

Assignment Help Financial Accounting
Reference no: EM132492623

Question 1: The present value of a stream of cash flows you expect to received will always increase when:

Option a. the interest rate is greater than zero and the number of compounding periods increase.

Option b. the interest rate is greater than zero and the number of compounding periods decrease.

Option c. the interest rate is zero and the number of compounding periods increase.

Option d. the interest rate is zero and the number of compounding periods decrease.

Question 2: If we hold all other factors the same, an increase in interest rates will:

Option a. Decrease the present value of a stream of constant payments we expect to receive.

Option b. Increase the present value of a stream of constant payments we expect to receive.

Option c. Decrease the interest revenue that a company will earn on its funds that it holds in its interest-bearing checking account.

Option d. No impact on how much a company should be willing to pay for factory equipment that is expected to significantly reduce the factory electricity costs.

Reference no: EM132492623

Questions Cloud

Individuals using cannabis as medicine : How to form a value claim thesis With the topic of pro-medical marijuana, supports will be stories about individuals using cannabis as medicine?
What restraining forces block implementation of program : For this proposal, identify a problem area of your current organization (or one in which you have previously worked) that you believe warrants a change.
What is the machines net present value : Xavier Co. The expected year-end net cash flows are $11,100 in each of the four years. What is the machine's net present value?
Create a proposal for an onboarding program : Your task is to create a proposal for an onboarding program (also known as an orientation or organizational entry and socialization program) for new consultants
Compute the present value of a stream of cash flows : What The present value of a stream of cash flows you expect to received will always increase. If we hold all other factors the same an increase in interest rate
BUACC5931 Research and Statistical Methods for Business : BUACC5931 Research and Statistical Methods for Business Assignment Help and Solution - Federation University, Australia. What is the current method of sampling
Describing the core competency for your company : Complete an analysis describing the core competency for your company or select a fortune 500 company department or division (i.e. Amazon, Google, or Coca Cola).
Reflect on the causes and consequences of prejudice : In this essay, you will reflect on the causes and consequences of prejudice, and apply the theories and strategies of conflict resolution to a fictional.
Assignment - Immune System Disorders : Immune System Disorders - Identify a person you know who has a cancer or an immune system disorder. Discuss the treatment for the immune system disorder

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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