Future value and multiple cash flows

Assignment Help Financial Management
Reference no: EM13849341

Future Value and Multiple Cash Flows- Cannonier, Inc. has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4 ? What is the future value at a discount rate of 11 percent? At 24 percent?

Year 1 Cash Flow $1225

Year 2 Cash Flow $1345

Year 3 Cash Flow $1460

Year 4 Cash Flow $1590

Reference no: EM13849341

Questions Cloud

Brazilian real spot exchange rate : The US dollar (USD) to Brazilian real (BRL) spot exchange rate was 0.5793 USD/ BRL on September 21, 2010. By January 17, 2011 it had moved to 0.5934 USD/ BRL. The 30-day forward rate then was 0.6039 USD/ BRL. Calculate the appreciation/ depreciation ..
Brazilian real hedging with futures-futures hedging strategy : The US dollar (USD) to Brazilian real (BRL) exchange rate was 0.5793 USD/ BRL on October 21, 2010. By January 17, 2011 it had moved to 0.5934 USD/ BRL. Over the same time-period, BRL 3-month futures had moved from 0.5826 USD/ BRL. Assume the maturity..
About the spot exchange rate : Suppose the spot exchange rate between the Swedish Krona (SKr) and the British pound (GBP) is the one under Key Currency Cross Rates in the quotes from the Wall Street Journal (WSJ) provided below.
What are the appropriate allocation rates : Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services is patient services revenue, while the cost driver for facilities is space utilization. what are the a..
Future value and multiple cash flows : Future Value and Multiple Cash Flows- Cannonier, Inc. has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4 ? What is the future value at a discou..
What is the current value of one share of this stock : Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 24 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid ..
What is the direct forward quote : Suppose the 90-day forward quotes on the Euro and the Danish kroner are $ 0.4002-10 and $0.1180-90, respectively. What is the direct 90-day forward quote for the kroner Frankfurt?
How much will the dollar appreciates against the real : Suppose that the Brazilian real depreciates by 40% against the US.dollar. By how much will the dollar appreciates against the real?
Combined communications is firm in rapidly growing intustry : Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 24 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid ..

Reviews

Write a Review

Financial Management Questions & Answers

  Residual distribution model

Plucky Products is planning for $3.3 million in capital expenditures next year. Plucky's target capital structure consists of 35% debt and 65% equity. If net income next year is $2.4 million and Plucky follows a residual distribution policy with all ..

  Firm u is an all equity firm and has a market value of

firm u is an all equity firm and has a market value of 500000 and ebit of 100000. firm l is identical in all respects

  Risk of the instrument with the higher interest rate

Do US Treasury bills have lower interest rates than large-denomination negotiable bank CD? Why or why not, is the difference appropriate, and do you think that it correctly reflect the risk of the instrument with the "higher" interest rate.

  Determine the required rate of return for equity

Use the dividend growth model to determine the required rate of return for equity. Your firm anticipates paying a divdend of $2.25 per share next year, has a recent price of $40.20 per share, and anticipates a growth rate in dividends of 3.00% per ye..

  What is your annualized return from these two investments

Suppose you have $60,000 to invest. You’re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $60 per share. You also notice that a call option with a $60 strike price and six months to maturity is available. MMEE pays..

  What is the monthly return on this investment vehicle

Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $3,000 monthly. The contract currently sells for $326,000. What is the monthly return on this investment vehicle? What is the APR?

  Nbspyou will also learn about the different approaches an

you will explore how businesses react to changing economic times and the influence this has on productservice

  What must the expected return on the market be

A stock has an expected return of 10.5 percent, its beta is 1.15, and the risk-free rate is 5 percent. What must the expected return on the market be? (Do not round intermediate calculations and round your final answer to 2 decimal places.

  What is the market value and required return

An unlevered company operates in prefect markets and has a earnings before interest and taxes (EBIT) of $250,000. Assume that the required return on assets for firms in this industry is 12.5%. Suppose that the firm issues $1 million worth of debt wit..

  Afford to make monthly payments

You want to borrow $36,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan?

  What is the objective companies attempt to achieve

What is the objective companies attempt to achieve when managing bank relations and name the three major paper-based payment mechanisms and explain each

  Merger bid

Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 5% and the market risk premium is 7%. If Harrison were to acquire Van Buren, what would be the range of possible prices that it could..

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