Find what is the value of stream at the end of year five

Assignment Help Financial Accounting
Reference no: EM132494711

Year                     Cash Flow ($)

0                            2,000

1                             2,000

2                                0

3                           1,500

4                               2,500

5                                  4,000

Question a. What is the net present value of the stream if the opportunity cost of capital is 10 percent?

Question b. What is the value of the stream at the end of year 5 if the cash flows are in- vested in an account that pays 10 percent annually?

Question c. What cash flow today (time 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.)

Reference no: EM132494711

Questions Cloud

Discuss about an area of economic concern in the country : As an employee of a company that is considering investing in a foreign economy, you have been asked to research a country and make a presentation to your.
Need a summary of articular : Need a summary of articular - Incident Of The Week: Impact Of Docker Security Breach - The internet attack puts upwards of 190,000 accounts at risk
How the proposal will impact the quality and availability : A brief description (250-500 words) of how the proposal will impact the quality, availability, accessibility, and affordability of care.
Kb7037 project feasibility and economics assignment : KB7037 Project Feasibility and Economics Assignment help and solution, Northumbria University - assessment writing service - Distinguish the economic perception
Find what is the value of stream at the end of year five : Find What is the value of the stream at the end of year 5 if the cash flows are in- vested in an account that pays 10 percent annually?
Describe the influence that the law has on pricing decisions : Managers should base pricing decisions on both cost and market factors. In addition, they must also consider legal issues. Describe the influence that the law.
Describe the importance of sales and resource planning : Taylor Inc. is interested in providing in-house professional development for the company. You have been selected to explain operational components to employees.
Difference between the interest rates on blue hole : What is the difference between the interest rates on Blue Hole's bonds and those on federal government bonds of like terms?
How each event may affect these three economic variables : Below are events that might affect the supply of money, the demand for money, and/or the interest rate. Explain how each event may affect these three economic.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What amount should cove report for additional paidin capital

they would have sold for $40,000 on an 8% yield to maturity basis. What amount should Cove report for additional paid-in capital on the issuance of the stock?

  Prepare a balance sheet as a single-step income statement

Prepare a Balance Sheet as of 06/30/16 and a SINGLE-STEP Income Statement for the year ended 6/30/16. This should be completed through the use of Excel formulas rather than retyping the ending balances from your T-accounts.

  What services does your site provide to its clients

What services does your site provide to its clients? How would you describe the population of clients that your site serves? What are your field experience responsibilities or typical daily tasks?

  Determine the free cash flow for matthias motors

Matthias Motors, Inc. has cash flows from operating activities of $900,000. Cash flows used for investments in property, plant and equipment totaled $550,000, of which 75% of this investment was used to replace existing capacity.

  Published in the harvard business review

Unexpected Benefits of Sarbanes-Oxley by Stephen Wagner and Lee Dittmar, published in the Harvard Business Review.

  Compute the cost per broadcast hour during august

Compute the cost per broadcast hour during August and October for each of these cost items.- What will be the cost per broadcast hour in December for each of the cost items?

  Calculation of break-evenmolly dymond and kathleen taylor

calculation of break-even.molly dymond and kathleen taylor are considering the probability of teaching swimming to kids

  Predetermined overhead rate-using activity based costing

Plum Tired manufactures tires for dune buggies and has two different products:  Using TRADITIONAL costing, and assuming overhead is applied based on direct labor hours, compute the predetermined overhead rate. Using Activity Based Costing, how much o..

  Defined benefit pension plan

Brit has a defined benefit pension plan. Characteristics of the plan during 2016 are as follows: Calculate the three components of net pension cost for 2016, indicating how they are reported in the income statement. What amount will Brit report in it..

  What are financial statements for facebook current assets

What are the financial statements for Facebook's current assets; liabilities; and property, plant, and equipment, identify three observations or assumptions

  Transactions for the just completed month

Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventories. Total labor wages of $152,300 were incurred and paid. Of this amount, $133,700 was for direct labor and the remainder was f..

  Explain how many shares of common stock are outstanding

How many shares of common stock are outstanding? Assuming there is a stated value, what is the stated value of the common stock? What is the par value of the preferred stock?

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