Finding the present value of all cash flow

Assignment Help Finance Basics
Reference no: EM1364157

You have determined the profitability of a planned project by finding the present value of all the cash flow from that project. Which of the following would cause the project to look less appealing, that is, have a lower present value?

a. The discount rate decrease.
b. The Cash flows are extended over a longer period of time.
c. The discount rate increase.
d. B and C are both correct,
e. A and B are both correct.

 

Reference no: EM1364157

Questions Cloud

Calculate the debt ratio before and after bank loan : Magic City Steel Enterprises has current assets of $160,000, total assets of $200,000, current liabilities of $85,000, and total liabilities of $100,000.
Health smoothing and alcoholic drink calorie : Doris was making a health smoothie. The recipe's ingredients contained 120 ml of water, 50 g of fat, 20 g of protein, 500 mg of vitamin C, 100 g of carbohydrates and 600 mg of calcium.
What kinds of cross-price demand relationships are possible : The following is intended to explore what kinds of cross-price demand relationships are logically possible in a two-good model with exogenous income.
Eu directive on the protection of personal data : How does the EU directive on the protection of personal data impose requirements on organizations in non-EU countries?"
Finding the present value of all cash flow : Suppose you have determined the profitability of a planned project by finding the present value of all the cash flow from that project.
Analysis of business simulations : Do an Internet search to identify the types of games and business simulations that are available. Select one and provide a description and an analysis of it. Discuss the learning content objectives.
Explain what does rawls mean by a veil of ignorance : Rawl's Veil of Ignorance in Social Justice - Explain what does Rawls mean by a veil of ignorance
Journals in developmental psychology : Using the University Library, browse through a number of articles from peer-reviewed journals in Developmental Psychology.
Illustrate what is the marginal cost of a shirt : A shirt company spends $1,000 per week on rent for its factory. Each shirt made at the factory requires $2 worth of cloth and $8 worth of labour and energy. Illustrate what is the marginal cost of a shirt.

Reviews

Write a Review

Finance Basics Questions & Answers

  Estimation of stock current price

A corporation currently pays dividend of $2 per share, Do=$2. It is estimated that the company's dividend will grow at rate of 20 percent per year for the next two years;

  Time value of money-toyota motor credit

Toyota Motor Credit Corp (TMCC) a subsidiary of Toyota Motor offered some securities for sale to the public on March 28, 2008. Why would TMCC be willing to accept such a small amount today in exchange for a promise to repay about four times that am..

  Constructing and managing a portfolio simulation

I need help on how to approach this assignment. i have to write a memo after completing the simulation. Complete the Constructing and Managing a Portfolio simulation

  Objective type of questions on bonds

Objective type of questions on bonds and calculate the duration on a bond with all of the same attributes as the bond in part

  Determine the years to maturity

My real risk-free rate is 3.50 percent, average future inflation rate is 2.25 percent, and a maturity premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t).

  What is the foreign exchange risk

What is the foreign exchange risk? What is the difference between balance sheet exposure and transaction exposure? Can you provide an example?

  International finance charge

Critics of the field of international finance charge that the field is simply "corporate finance with an exchange rate."

  Cash flow under the new capital structure

Buffet enterprises is planning a change from its current capital structure. Buffet currently has an all equity capital structure and is considering a capital structure with 40 percent debt.

  Explain how u.s. financial markets impact the economy

Explain the role of the United State Federal Reserve, Federal Reserve Chairman, & Board, indicating its effectiveness in today's economic environment. Provide support for rationale.

  Solving multiple choice finance problems

Determine which of the following motivates corporations to enter into stock repurchase programs?

  Computation of coefficient of variation

Computation of Coefficient of Variation and The data gathered relative to each of these alternatives are summarized

  Solving bep problems

Calloway Cab Corporation determines its break even strictly on the basis of cash expenditures related to fixed expenses. Its total fixed costs are $400,000, but 20% of this value is represented by depreciation.

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