Find the present value of monthly cash stream

Assignment Help Financial Management
Reference no: EM131868095

It is April 1, 2017 and you need to find the present value of a monthly cash stream that is $1 at the end of the 1st month, and then doubles each odd-numbered month but only increases by $1 in even months. The cash stream lasts for a year and the interest rate is 12% compounded monthly.

Reference no: EM131868095

Questions Cloud

Reconciliation from financial income to taxable income : Tax depreciation exceeded book depreciation by $40,000. A reconciliation from financial income to taxable income for 2016.
Find the present value of the year end cash flow stream : Find the present value of the following year end cash flow stream: 500, (250), 1500, 937, 300,
Which alternative has the highest present value : Assume that a discount rate of 8 percent is used, which alternative has the highest present value?
Retirement plan that permits him to place monthly amounts : Jose is 25 years old today and has a retirement plan that permits him to place monthly amounts of $150 into a retirement vehicle
Find the present value of monthly cash stream : It is April 1, 2017 and you need to find the present value of a monthly cash stream that is $1 at the end of the 1st month,
Advantages to renting cable modem from time warner : What are the advantages to renting a cable modem from Time Warner? What are the advantages to buying a cable model from Time Warner.
What should be greta capital allocation : Greta, elderly investor, has degree of risk aversion of A = 3 when applied to return on wealth over one-year horizon. What should be Greta’s capital allocation?
The present value of the inheritance : Which of the following comes closest to the present value of the inheritance if the bond’s required rate of return is 10%?
Construct a dupont analysis : You have been hired as a financial analyst by First Citizens Bank. Construct a DuPont analysis

Reviews

Write a Review

Financial Management Questions & Answers

  Initial cost company would be willing to pay for project

Och, Inc., is considering a project that will result in initial aftertax cash savings of $1.85 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. What is the maximum initial cost the compan..

  What is the minimum number of bonds the firm

The MerryWeather Firm wants to raise $13 million to expand its business. To accomplish this, the firm plans to sell 20-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 7 percent. What is the minimum number of bonds the fir..

  How much will nick have to pay for the second claim

How much will Nick have to pay for the second claim?

  The initial fixed asset investment in the project

Which one of the following costs was incurred in the past and cannot be recouped? A project will produce an operating cash flow of $31,200 a year for 7 years. The initial fixed asset investment in the project will be $204,900. What is the net present..

  What is addition to retained earnings

California Retailing Inc. has sales of $4,000,000, the firm's cost of goods sold is $2,500,000, and it’s total operating expenses are $600,000. The firm’s interest expense $250,000, and the corporate rate is 40%. The firm paid dividends to preferred ..

  Cost of borrowing the maximum amount of credit available

MDM Inc. is considering factoring its receivable. The firm has credit sales of $600,000 per month and an average receivable balance of $600,000 with net 90 credit terms. What is the cost of borrowing the maximum amount of credit available to MDM Inc...

  Calculate the amount of interest

Suppose you wish to have $16,500 in 2 years. Use the present value formula to find how much you should invest now at 8% interest, compounded semiannually in order to have $16,500, 2 years from now. Then calculate the amount of interest.

  Calculate the semi-annual coupon payment

Lintron Inc issued corporate bonds to finance the purchase of a new plasma die cutting machine. The bonds are currently selling for $1035.50 and have 8 years remaining until maturity. The market interest rate is 5.4% annually. Calculate the semi-annu..

  Find the net present value for a project that would yield

A project proposal stated that it would provide at least $20,000 in annual returns for the next 3 years but requires an initial investment of $50,000. Will its approval be worthwhile if the cost of capital is 8%? Find the net present value for a proj..

  A company issues zero coupon bonds which mature

A company issues zero coupon bonds which mature in 30 years. These bonds can be bought for $99.38 and then pay no annual interest payments, only $1000 at maturity. What is the annual percentage cost of these bonds to the issuing company?

  What is the effective annual return on this investment

Suppose that you receive $500 at the end of each future month for 5 years the discount rate is 12% (APR). What is the present value? Suppose that you deposit $500 at the end of each future month into an account paying 6% (APR). How much will have in ..

  Consumer groups contend that the pricing for some drugs

Consumer groups contend that the pricing for some drugs is “too high” considering that the costs to manufacture each dose in so low.

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