Determine the most you would pay for this golf course

Assignment Help Financial Management
Reference no: EM132027568

You are thinking of buying a miniature golf course to operate. It is expected to generate cash flows of $45,000 per year in years one through three and $55,000 per year in years four through eight.

If the appropriate discount rate is 12%, what is the most you would pay for this golf course?

Reference no: EM132027568

Questions Cloud

Determine its times-interest-earned ratio : Thomson Trucking has $24 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 17%, and its return on assets (ROA) is 6%.
Calculate out the current ratio and quick ratio : Calculate out the current ratio, quick ratio, Working Capital, Days Sales in Receivables (DSR) and Days Sales in Inventory (DSI) for all 5 years.
What annual interest rate will the bond earn : You are thinking about buying a savings bond. the bond costs $41 today and will mature in 10 years with a value of $82.
Analyze the variable cost per unit : Thomas Train has collected the following information over the last six months. Using the high-low method, what is the variable cost per unit?
Determine the most you would pay for this golf course : If the appropriate discount rate is 12%, what is the most you would pay for this golf course?
Calculate the zaras total stockholders equity : You are thinking of investing in NFL, Inc. You have only the following information on the firm at year-end 2008.
What is the cash flow of the firm : A net total of $485 was paid on long-term debt. The firm spent $6,180 on fixed assets and decreased net working capital by $420.
Find q if the present values of x and y are equal : A perpetuity Y has payments of $Q at the end of each year for twenty years, then payments of $3Q at the end of each year thereafter.
What is the price you would be willing to pay a share right : If you require a holding period return (HPR) of 20% on this investment, what is the price you would be willing to pay a share right now?

Reviews

Write a Review

Financial Management Questions & Answers

  About the value of his investment

Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock currently is valued at $42.00 per share. The company needs to raise new capital to invest in production. The company is looking to..

  What is the cash flow effect of selling the machine

Find the year zero cash flow. Find the depreciation tax shield for the three operating years. What is the cash flow effect of selling the machine?

  More money to get back to even after big investment loss

Why does it take more money to get back to even after big investment loss?

  At what annual rate would the have to be invested

At what annual rate would the following have to be invested?

  Dumb beta strategy and sharpe ratio

Two mutual funds, fund A has a beta of 1.5, fund B has a beta of 0.5, unchanged regardless of market condition.

  Stake holder and issues management approach

Describe the dilemma and your ethical position. using book Business Ethics- A stake holder and Issues Management Approach.

  What will be your rate of return after one year

what will be your rate of return after 1 year if Microsoft is selling at $27?

  What is percy cost of common equity

Percy Motors has a target capital structure of 45% debt and 55% common equity, What is Percy's cost of common equity?

  How much new stock will be issued next year

You are expected Sales to increase next year by 10% off of a base of $7,000 this year. How much new stock will be issued next year?

  Forecast method advantages and disadvantages respectively

From the news, you identified a trend that Mexican nominal interest rates have been substantially higher than U.S. nominal interest rates in recent years. According to Fish Effect, what do you expect inflation gap between two country’s inflation rate..

  About the bond yields

Chamberlain Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 7 percent coupon bonds on the market that sell for $1,083, make semiannual payments, and mature in 20 years. What coupon rate should t..

  Calculate ts taxable income for the tax year

Calculate T's taxable income for the tax year of 2012. T will not be able to itemize deductions and calculate T's capital account in the partnership at the end of the tax year.

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