How much would you be will to pay for the asset today

Assignment Help Financial Management
Reference no: EM131593181

If you think you can sell an asset for $25,000 In five years and you think the appropriate discount rate Is 5%, how much would you be will to pay for the asset today?

A) $25,000

B) $19,588.15

c) Cannot Tell From This Information

Reference no: EM131593181

Questions Cloud

Disease control and prevention social media toolkit : First, click here to download a copy of the Centers for Disease Control and Prevention's Social Media Toolkit.
How you determine which needs to address : How you determine which needs to address? How you plan to address major needs in your project? Format your assignment according to APA guidelines.
Power plays-abuse of power in health care organizations : Suggest the major issues that you believe are the basis for most of the organizational power struggles within health care facilities.
How much does the technology cost explain : How effective is the technology? Explain. How much does the technology cost? Explain. Consider equipment, training, maintenance, and implementation costs.
How much would you be will to pay for the asset today : how much would you be will to pay for the asset today?
A portfolio that combines the risk-free asset : A portfolio that combines the risk-free asset and the market portfolio has an expected return of 6.1 percent and a standard deviation of 9.1 percent.
What is the present value added assuming : What is the present value added assuming a 10% rate?
What expected rate of return would security earn : What expected rate of return would a security earn if it had a .36 correlation with the market portfolio and a standard deviation of 54.1 percent?
What expected rate of return would security earn : What expected rate of return would a security earn if it had a .36 correlation with the market portfolio and a standard deviation of 54.1 percent?

Reviews

Write a Review

Financial Management Questions & Answers

  Explain black and scholes model and its limitations

The Black-Scholes model introduced standard options pricing method which is very useful among users. With reference to above, explain Black and Scholes model and its limitations reviewing published journal articles.

  Calculate production cycle and collection cycle

Calculate production cycle, collection cycle, and accounts payable cycle. Should the company decrease cash conversion cycle? Please explain your answer.

  Considering purchasing an apartment building

You are considering purchasing an apartment building for 1.2 million dollars. You expect the yearly cash inflows for the first three years to be $175,000 and year 4 and 5 will be $200000 and 250,000 respectively. At hte end of year 5 you sell the bui..

  Maturity and a market interest rate

Calculate the price of a 5.5 percent coupon bond with 15 years left to maturity and a market interest rate of 10.0 percent.

  Suppose your required return on project-pretax cost savings

Your firm is contemplating the purchase of a new $642,000 computer-based order entry system. The system will be depreciated straight-line to zero over its six-year life. Suppose your required return on the project is 8 percent and your pretax cost sa..

  Why is it important when dealing with the cost of capital

How can you find the weights to be used for the WACC and which are more appropriate (market versus book)? What does WACC stand for and why is it important when dealing with the Cost of Capital?

  Should the firm make investment

A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $16,000 per year for five years. Calculate the payback period of the project. If the firm’s maximum acceptable payback period is 3 years, should the firm..

  Expected annual cash flows thereafter

Juanita has an opportunity to invest in her friend's clothing store. The initial investment is $10,700 and the expected annual cash flows thereafter are as follows: {$400; $500; $1,000; $2,000; $2,000; $4,000; $4,000}. What is Juanita's IRR on this i..

  Inventory turnover that henderson corporation is expecting

Henderson Corporation is supplier of alloy ball bearings to auto manufacturers in Detroit. Inventory turnover that Henderson Corporation is currently expecting

  What is the current exchange rate of us dollars for yen

A bundle of goods in Japan costs ¥4,235,000 while same goods-services cost $31,200 in the United States. what is current exchange rate of U.S. dollar for yen ?

  What would be the percentage change in the price of bond

what would be the percentage change in the price of Bond Sam and Bond Dave?

  Install panels based solely on financial considerations

CFS is considering applying for a stimulus funding grant that would allow it to install solar panels on each of its four fire houses. The roofs on each of the firehouses are big enough to accommodate 30,000 square feet of panels. Panels cost $8 per s..

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