Determine the present value of the continuous cash flow

Assignment Help Accounting Basics

Reference no: EM131965615

Problem

The productivity of a certain piece of manufacturing equipment is expected to decline at a constant rate with age from an initial value of $500,000 at time 0, to a final value of $40,000 at the end of year 3. If interest is compounded continuously at a nominal annual rate of 11%, determine the present value of this continuous cash flow.

Reference no: EM131965615

Questions Cloud

What is information systems security : What is Information Systems Security? What is the importance of information system security?

How do they relate to informations systems security : What are the tenets of information Security? How do they relate to Informations Systems Security?

Calculate the value of kendras operations : Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively;

Computerized operating systems : Computerized Operating Systems (OS) are almost everywhere. We encounter them when we use out laptop or desktop computer

Determine the present value of the continuous cash flow : If interest is compounded continuously at a nominal annual rate of 11%, determine the present value of this continuous cash flow.

What is your estimate of the value of kcps stock : If KCP has $100 million in cash, $3 million in debt, 21 million shares outstanding, a tax rate of 37%, and a weighted average cost of capital of 11%.

What will be the new price per share after the repurchase : You have decided to retire and want to sell your shares in a closely held, all equity firm. The other shareholders have agreed to have the firm borrow.

How is backup data files different : Research 2 software-based backup utilities for Linux. describe and explain several important features.

Calculate the price-recovery component : Calculate the cost of inputs in 2015, assuming no productivity change from 2014 to 2015. Calculate the price-recovery component.

Reviews

Write a Review

Required(*) Message

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

User Account

All Pages