Finding the present value of all the cash flows

Assignment Help Financial Management

Reference no: EM13945237

You have determined the profitability of a planned project by finding the present value of all the cash flows from that project.

Which of the following would cause the project to look more appealing in terms of the present value of those cash flows?

A. The discount rate decreases.

B. The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the same.

C. The discount rate increases.

D. Answers A and B above.

Reference no: EM13945237

Questions Cloud

Analyzing after-tax cost of debt for firm : You are analyzing the after-tax cost of debt for a firm. You know that the firm’s 12-year maturity, 9.10 percent semi-annual coupon bonds are selling at a price of $767.17. These bonds are the only debt outstanding for the firm. What is the current Y..

What exactly makes the argument misleading : Use the Internet to find an example of an argument that is misleading. A good place to start might be advertisements or political debate. Explain your position. What exactly makes the argument misleading

Expanding rapidly-what is the value of the stock today : Microtech Corporation is expanding rapidly, and it currently needs to retain all of its earnings, hence it does not pay any dividends, with the first dividend of $1.00 coming 3 years from today. The dividend should grow rapidly—at a rate of 50 percen..

Compute the net present value of the actual cash flows : Compute the net present value of the actual cash flows as of the beginning of the investment.

Finding the present value of all the cash flows : You have determined the profitability of a planned project by finding the present value of all the cash flows from that project. Which of the following would cause the project to look more appealing in terms of the present value of those cash flows?

What premises support the conclusions in each article : What is the conclusion of each article? Define the term premises. What premises support the conclusions in each article? How convincing is the conclusion of each article

Visit the endeavour space shuttle : Visit the Endeavour Space Shuttle (any day) at the Science Center. Fees vary so visit the Reservation Desk for info. For directions click here. It's near USC in downtown LA.

Comparative advantage in borrowing floating : IRS Suppose Company X is an international company and its client is requesting a 10-year $5,000,000 floating-rate loan. Company Y needs $5,000,000 to finance a 10-year project. X is an AAA-rated bank and Y is a BBB-rated company. Based on their borro..

Topic of effective and ethical communication : Design an algorithm and use it to write a Python program that reads the contents of the data file into a list. The program should then loop, to allow a user to check various numbers against those stored in the list.

User Account

All Pages