Find what is the present value of the investment

Assignment Help Financial Accounting
Reference no: EM132920037

Problem 1: $2,294 every year at the end of the year for the next 7 years, discounted back to the present at 15.62 percent per year, compounded annually?

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 7.8 percent, compounded annually.

End of year

1. $3,654

2. $336

3. $2,313

4. $2,639

Problem 2: What is the present value of this investment if 7.8 percent per year is the appropriate discount rate?

Reference no: EM132920037

Questions Cloud

What is her cash flow under the current capital structure : Ms. Brown, a shareholder of the firm, owns 100 shares of stock. What is her cash flow under the current capital structure
How much money have accumulated for retirement : How much money have you accumulated for your retirement? You are going to withdraw $55,188 every year at the beginning of the year for next 29 years starting.
What is the value of Cullumber total assets : The equity multiplier for Cullumber Corporation is 1.80, its EBIT return on assets (EROA) is 0.07, What is the value of Cullumber total assets
What is the present value of the cash flow pattern : You have been offered the opportunity to invest, If the appropriate discount rate is 11.1 percent per year, what is the present value of this cash flow pattern?
Find what is the present value of the investment : $2,294 every year at the end of the year for the next 7 years, discounted back to the present at 15.62 percent per year, compounded annually?
Compute the value of the bond : A Rs. 100 par value bond bears a coupon rate of 14 percent and matures after 5 years. Interest is payable semi-annually. Compute the value of the bond
What is process control : -Identify at least two responsibilities of a dispatcher relating to operational control of Part 121 operations. How do these duties compare with those of the pi
What is the value of the common stock if investors require : Gilliland? Motor, Inc., paid a ?$3.75 dividend last year. What is the value of the common stock if the investors require a rate of return of 20 ?percent?
What will be the material price and quantity variances : Actual Data Produced 14,400 units Materials purchased 4,600 lbs. for a total of $32,660. What will be the material price and quantity variances

Reviews

Write a Review

Financial Accounting Questions & Answers

  What expenditure systems are needed

What expenditure systems are needed? Why are they important? Example: purchasing/accounts payable/cash disbursements

  What are three factors under the firm control

Suppose interest rates increase. How would such a change affect the costs of both debt and common equity based on the CAPM?

  Question able company expects to start the coming year with

question able company expects to start the coming year with 12000 units of product x in the inventory of completed

  Company currently applies manufacturing

The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this is followed, how much overhead cost would be applied to each product.

  On june 15 2011 sanderson construction entered into a

on june 15 2011 sanderson construction entered into a long-term construction contract to build a baseball stadium in

  What is the book value of the asset on december

What is the book value of the asset on December 31, 2022? he cost of the asset was 140,000, with an estimated useful life of 8 years.

  How should the difference be treated

When a partner retires and receives settlement in cash less than his capital balance, how should the difference be treated? The difference should be credited.

  Discuss whether jonni is behaving in professional manner

At the end of the current month, Jonni Rembert prepared a trail balance for star Rescue Service. The credit side of the trail balance exceeds the debit side by a significant amount. Jonni has decided to add the difference to the balance of the miscel..

  Determine what is standard quantity of kilograms of plastic

Bandar Industries Berhad of Malaysia manufactures, What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets?

  Items of income and loss

During the current year, Beth and Bill, who file a joint return, incurred the following items of income and loss:

  Determine and show a combined single-step income statement

Show a combined single-step income statement and retained earnings for the year ended December 31, 2007. Jackson Company had the following income statement

  What should be the quantity sold

The company believes that the price elasticity of demand for this product is -2.5. If the price is decreased to $63, what should be the quantity sold? Will total revenue increase? Why?

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