Future cash flows assuming the companys cost of capital

Assignment Help Financial Management
Reference no: EM13728577

Find the net present value for the following series Of future cash flows assuming the companys cost of capital is 9.7%.

The initial outlay is $650,000 Year 1: 190,633 Year 2: 181,120 Y3: 150,234 4: 183,078 5: 165,995 Please show work

a. -18,123.15 b. 18,989.15 c. 668,989.34 d. 56,945.15

Reference no: EM13728577

Questions Cloud

Find the modified internal rate of return : Find the modified internal rate of return (MIRR) for the following series of future cash flows. The company can reinvest the cash flows from the project at an annual rate of 4.45%. The initial outlay is $670,560.
Consider an economy with the following cobb-douglas producti : Consider an economy with the following Cobb-Douglas production function (note that this production function does not contain natural capital). If the capital stock and real GDP grows at 3 percent per year, labor hours grow at 4 percent per year, and ..
Outlining maryland court system : This paper is about outlining Maryland's court system in short. We'll have the chance to be familiar with basic concepts of state justice system and get to know more about the following issues:
Find a resource about one of the classical authors mentioned : Find a resource about one of the Classical authors mentioned in Carl Richard's lecture, and tell us, in about 300 words about the topic of the resource, why it might be useful.
Future cash flows assuming the companys cost of capital : Find the net present value for the following series of future cash flows assuming the companys cost of capital is 9.7%.
Concept of market segmentation in real world practice : The purpose of this assignment is to introduce you to the concept of market segmentation in real world practice
Using the internal rate of return-after-tax cash inflows : A company is using the internal rate of return (IRR) when evaluating projects. You have to find the IRR for the company's project. The initial outlay for the project is $450,000. The project will produce the following after-tax cash inflows:
What is the yield to call for these bonds : Bob plans to purchase a callable Bond of general electric. The bond is 20 year to maturity, carry 10.5% annual coupon, paid semi annually, and have $1000 par value. The bond is selling now for $1,187.40 each. The bond can be called back in 5 years at..
Why did the scots-irish immigrate to the new-world : Why did the Scots-Irish immigrate to the New-World? Where did they settle?

Reviews

Write a Review

Financial Management Questions & Answers

  Explain financial data and associated decision making

In addition, you may wish to seek out further information through your own research. When you have reviewed the advice and the plans, please prepare a short (2-3 page) paper discussing:

  What growth rate is expected for the companys stock price

The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stocks. If the company plans to pay a dividend of $3.85 next year, what growth rate is expected for the company’s stock price?

  Calculate the expected return of stock a

Calculate the expected Return of Stock A, expected Return of Stock B, standard Deviation of Stock A and standard Deviation of Stock B

  1 the eurusd spot exchange rate is quoted as 132250-132267

1. the eurusd spot exchange rate is quoted as 1.32250-1.32267. how many eur are needed to purchase 100000000 usd on

  What is the expected return of the two asset portfolio

An investor wants to form a two asset portfolio consisting of Treasury bills with a return of 1.5% and a risky portfolio with a risk premium of 12.7% and a standard deviation of 22%. The investor wants the standard deviation of the two asset portfoli..

  Mutually exclusive-required projects with the cash flows

Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 10 percent. Project A s Cash flow from year 0 to year 3: -1000, 400, 40..

  Calculate the price of a share of companys common stock

You are given the following information: Stockholders' equity = $3.75 billion, price/earnings ratio = 15.5, common shares outstanding = 12 million, and market/book ratio = 2. Calculate the price of a share of the company's common stock. Round your an..

  Should the new lathe be purchased

The firm estimates the revenues and expenses for the new and the old lathes to be as shown in the following table. The firm is subject to a 40% tax rate. Should the new lathe be purchased?

  Globalisation of the international ?financial markets

Examining the important factors that driving globalisation of the international ?financial markets and providing an analytical description of one or more financial crises that have occurred ?in the world's economy

  What is the beta of your portfolio

What is the beta of your portfolio?

  Statistics for a households annual cash flow

Consider the following statistics for a household's annual cash flow: Net Cash Flow ($3,400) ; Nondiscretionary Expenses ($32,750); Discretionary Expenses ($9,250); Retirement Investments ($13,500) and Debt Repayment ($4750). Calculate the Gross Savi..

  How many shares will the firm issue

A firm currently has equity with a market value of $600,000,000 and debt with a market value of $500,000,000. The firm has 10,000,000 shares outstanding. The bonds offer investors a return of 8%. The firm is contemplating issuing $300,000,000 in new ..

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