Find the future year 5 value of cash flow stream if the

Reference no: EM13476809

Consider another uneven ash flow stream:

Year                           Cash Flow
0                                     2,000
1                                     2,000
2                                         0
3                                     1,500
4                                      2,500
5                                      4,000
a. What is the present (Year 0) value of the cash flow stream if the opportunity cost rate is 10 percent?

b. What is the future (year 5) value of the cash flow stream if the cash flows are invested in an account that pays 10 percent annually?

c. What cash flow today (year 0), in lieu of the 2,000 cash flow, would be needed to accumulate 20,000 at the end of year 5 (assume that the cash flows for years 1 through 5 remain the same)

d. Time value analysis involves either discounting or compounding cash flows. Many healthcare financial management decisions-such as bond refunding, capital investment, and lease versus buy-involve discounting projected future cash flows. What factors much executives consider when choosing a discount rate to apply to forecasted cash flows?

Reference no: EM13476809

Questions Cloud

Determine the projects operating cash flows in years 1 2 : you have been asked by the president and ceo of kidd pharmaceuticals to evaluate the proposed acquisition of a new

Find the firms cost of equity estimate according to dcf : golden state home health inc. is a large california-based for-profit home health agency. its dividends are expected to

Suppose that twin oaks four year bond had seminannual : twin oaks health center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until

Research the three types of bankruptcy and answer the : research the three types of bankruptcy and answer the following questionsbullwhat are some of the reasons that people

Find the future year 5 value of cash flow stream if the : consider another uneven ash flow

Fhe projects coefficient of variation cv of : consider the following probability distribution of returns estimated for a proposed project that involves a new

Is there a relationship between the 2 measurements for the : baseball stadiums vary in age style size and in many other ways. fans might think of the size of the stadium in terms

Females are estimated to account for what percentage of : 1 the best approach to stress is toa manage or limit it.b just deal with it.c dont increase it.d eliminate it.2

An american business requires to pay a 15000 canadian : selling quotes for foreign currencies in new

User Account

All Pages