How to find the present vale of the stream of cash flows

Assignment Help Financial Accounting
Reference no: EM132646936

Problem 1: Find the present vale of the following stream of cash flows assuming that the firm's cost is 14% and that these amounts are received at the end of each year.

Year              Amount
1 - 5           $20,000/yr
6 - 10           $35,000/yr

1. $135,450
2. $187,500
3. $126,465
4. $131,067
5. $98,690

Reference no: EM132646936

Questions Cloud

What is edward new monthly payment : Five years ago, Edward borrowed $400,000 to purchase a house in Sandy Lake. At the time, the quoted rate on the mortgage was 5 percent
What would you expect the nominal rate of interest : 1. What would you expect the nominal rate of interest to be if the real rate is 4.75% and the expected inflation rate is 7%? Use two decimal places.
What is your net gain or loss on investment : You wrote 8 call option contracts on XYZ stock with a strike price of $40 and an option premium of $2.17. What is your net gain or loss on this investment
Learnscape simulation-customer satisfaction : Learnscape Simulation: Customer Satisfaction The Chief Executive Officer of Bright Road Health Care System wants to improve patient care survey results
How to find the present vale of the stream of cash flows : How to Find the present vale of the stream of cash flows assuming that the firm's cost is 14% and that these amounts are received at the end of each year.
What will the financial stake be : When they start, into an account that pays 7.75% compounded annually, what will his financial "stake" be when he leaves for Australia five years from now?
Discuss the immediate income tax consequences : Discuss the immediate income tax consequences of the proposed transaction. Draw a diagram of your proposed reorganization and its results
Journalize entries to record transactions of betz company : Betz Company during July of the current year. How do Journalize the entries to record the transactions of Betz Company for July?
Make plan that allow transaction to qualify reorganization : If it cannot meet the "Type C" requirements, suggest an alternative plan that will allow the transaction to qualify as a "Type C" reorganization

Reviews

Write a Review

Financial Accounting Questions & Answers

  Capital investment decision-payback period method

Eco Wet, Inc., a manufacturer of gears for lawn sprinklers, is thinking about add- ing a new fully automated machine. This machine can produce gears that the com- pany now produces on its third shift. The machine has an estimated useful life of ten y..

  Create a pro forma balance sheet and income statement

Prepare a pro forma balance sheet and income statement providing the assumptions made and support the valuations assigned.

  Provide the journal entry in excel for the transactions

Provide the journal entry in EXCEL (if applicable) for the transactions listed below. If a journal entry is not required, write DOES NOT APPLY.

  Stock is classified as available-for-sale securities

On February 15, Bayo buys 7,000 shares of Kebo common at $28.53 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. On March 15, Lathit declares a dividend of $1.15 per share payable to stockholders of re..

  Find how to conduct high stakes negotiations in digital age

Find How to Conduct High Stakes Negotiations in the Digital Age without Being Short-changed. Explain in detail and provide the specific example.

  How much loss would the company recognize

Annual fixed costs are $24,000. If Rambles sells 10 units less than breakeven, how much loss would the company recognize on its income statement?

  Calculate total break even and how much does game day

Calculate total break even and how much does game day attendance need to increase to show a profit. also how much should game day attendance increase

  Organize a statement of cash flows

Organize a statement of cash flows

  Details of mccormick plant proposal

Question: Find the NPV using the after-tax WACC as the discount rate.

  Do the entry for purchases

Do the entry for purchases. Boston Shop bought these items on account. Boston Shop uses a periodic inventory system. At December 31, 2019, the accounting record

  Q1 a manufacturing company produces and sells 20000

q1. a manufacturing company produces and sells 20000 units of a single product. total products costs are 14 per

  Model business corporation act

Under the Model Business Corporation Act, a shareholder may ask a court to dissolve a corporation and An individual who joins an existing partnership has no liability for partnership debts that arose prior to his joining the partnership.

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