Example of a situation where a building contractor

Assignment Help Finance Basics
Reference no: EM132355620

In?finance,?discounted cash flow?(DCF) analysis is a common technique of placing value on a project or company. All of the future?cash flows are projected and?discounted?by using cost of capital to determine their?present values?(PVs). Adding up all future cash flows, both incoming and outgoing, provides the?net present value?(NPV).

Give an example of a situation where a building contractor may want to use the discounted cash flow?(DCF) analysis method.

Reference no: EM132355620

Questions Cloud

What impact health insurance has on our economy today : The present health care system relies on public and private health insurance systems. On the basis of your understanding of the health insurance system.
Price has been increasing at 6 percent per year : Today, that company is valued at $53,296. How long has Randy owned the company if the price has been increasing at 6 percent per year?
Describe the semiotic visual elements in the logo design : Describe the semiotic/symbolic visual elements in the logo design. Discuss why having visual symbolic and iconic communication in a logo may be a good strategy.
Foreign exchange risk company faces : As the CFO of a multinational company, which financial securities can you use to manage the foreign exchange risk that your company faces?
Example of a situation where a building contractor : ?Give an example of a situation where a building contractor may want to use the discounted cash flow?(DCF) analysis method.
Display the number of names that are stored in a file : Assume a file containing a series of name is named names.txt and exists on the computers disk. Write program that displays the number of names that are stored
Discuss how you may be able to use images and visuals : Throughout this course, we have thoroughly examined the effects visuals have on viewers. We have analyzed the sensory and perceptual responses of viewers when.
What is the significance of the lease : a. Would you pay the asking price or is $120,000 a reasonable offer? b. What other factors should you consider in arriving at the purchase price?
Present value of the mixed stream of cash flows : a. Determine the present value of the mixed stream of cash flows, using a 5% dis-count rate.

Reviews

Write a Review

Finance Basics Questions & Answers

  Sample coefficients of variation for marketing expenditure

For this data, the sample coefficients of variation for marketing expenditure, number of rainy days per month, and number of sales have been calculated

  Standard deviation of the stock returns

A stock produced returns of 11 percent, 19 percent, and 2 percent over three of the past four years, respectively. The arithmetic average for the past four years is 9 percent. What is the standard deviation of the stock's returns for the four-year..

  Use multisim and construct the circuit shown

Use Multisim and construct the circuit shown in Figure 1 below.  Measure VB, IE and VC. Check your input signal with the oscilloscope to make sure you have correct amplitude, frequency value and frequency type.

  Compute what is the present value of the given annuity

What is the present value of the following annuity? $2,395 every quarter year at the end of the quarter for the next 8 years, discounted back to the present at 5.67 percent per year, compounded quarterly?

  Define what is the value of a preferred stock

What is the value of a preferred stock that pays an annual dividend of $2.00 when the required rate of return is 5 percent?

  Problem with computing a z score for a closely held firm

What does a Z score below 2.675 indicate, according to the Altman model?- Indicate a practical problem with computing a Z score for a closely held firm.

  What is the irr for the gold mine

After 11 years, the mine will be abandoned. Abandonment costs will be $114,000 at the end of year 11.

  An individual medical insurance policy covering

Jennifer, age 28, is divorced and has a son, age one. Six months ago, Jennifer purchased an individual medical insurance policy covering the entire family. Her son was recently diagnosed with congenital heart disease.

  Basic principles of stock options

A person who buys an option may do any of the following except

  Would you invest your human capital in firm as an employee

Would you invest your financial capital in the selected firm as a shareholder? Would you invest your human and intellectual capital in the firm as an employee?

  Define option call option put option

Define each of the following terms: a. Option; call option; put option b. Exercise value; strike price c. Black-Scholes Option Pricing Model

  Why might securitization lead to a mortgage broker

Why might securitization lead to a mortgage broker becoming disconnected from the outcome of a lending decision?

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