Identified an investment project with the cash flow

Assignment Help Financial Management
Reference no: EM131012737

Havana, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,040 2 1,270 3 1,490 4 2,230. If the discount rate is 9 percent, what is the future value of these cash flows in Year 4? What is the future value at an interest rate of 12 percent? What is the future value at an interest rate of 23 percent?

Reference no: EM131012737

Questions Cloud

Calculate the internal resultant normal force n : Beam AC has been cut at D, and the left section free-body diagram is shown. Calculate the internal resultant normal force N, shear force V , and bending moment at D, M. Use the sign convention for internal resultant loading in a beam.
A retail outlet of a large sporting goods company : Marsha has recently been hired to work in sales at a retail outlet of a large sporting goods company. Marsha receives a base salary and a bonus depending on the amount of sales that he makes in a month. She earns a bonus in any month that her sales a..
Powder surf is a manufacturer of snow board : Powder surf is a manufacturer of snow board. Powedersurf is an aggressive marketer, and new to this product line. Powedersurf has adopted several strategies to help it rapidly build market share. One approach was to make the designs and graphics of s..
Explain the relationship between capital and occupy movement : Please explain the relationship between Capital (Karl Marx) and Occupy Movement, to do a Marxian analysis of the Occupy Movement, what they want, and how their ideas conform to Marx's. Why there are imbalance in society injustices
Identified an investment project with the cash flow : Havana, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,040 2 1,270 3 1,490 4 2,230. If the discount rate is 9 percent, what is the future value of these cash flows in Year 4? What is the future value at..
What is the internal rate of return of this opportunity : What is the internal rate of return (IRR) of this opportunity? Suppose another investment opportunity also requires $4,000 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the f..
Par value-preferred stock-residual distribution model : Optimal-distribution, Par value, Positive, Preferred stock, Residual distribution model, Short-term, Stock dividend, Stock split, Target capital structure, Tax-deductible, Tax preference theory, Treasury stock, Undervalued
What kind of national food they have : There are no special things you should be focusing on when researching about this country and culture, so pretty much general informative things that one needs to know about this country. Where is it located. When it became a country and how? What..
What is the equation of line through the given point : Find the line through the point (1, 3, 6) perpendicular to the plane x - 2y + 2z = 8 and The plane through the points (1, -2, 0) and (0, -2, 4) and containing the line: x = 1 + 2t, y = - (2 + t), z = 4t.

Reviews

Write a Review

Financial Management Questions & Answers

  Net present value of both new purchase and lease option

Proust Manufacturing Co. produces personal fitness machines. The once successful line is no longer selling well, so the company is considering production of a new improved cardio-vascular machine. This can be done by buying needed production equipmen..

  Mainlines net income-total profit margin and cash flow

Assume that Mainline Homecare, a for-profit corporation, had exactly the same situation as reported earlier (Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. What were Mainlines' net income, total profit margin, an..

  The conversion ratio on the bond

A convertible bond has a 8 percent coupon, paid semiannually, and will mature in 20 years. If the bond were not convertible, it would be priced to yield 7 percent. The conversion ratio on the bond is 20 and the stock is currently selling for $53 per ..

  What is your return rate in one year

Last year, you purchased a $1,000 par value bond with a 7.5% annual coupon and a 20-year maturity. At the time of the purchase, it had an expected YTM of 8%. After receiving the coupon, you sold the bond today for $930. What is your return rate in on..

  Fixed rate mortgage with monthly payments

You are buying a house and will borrow $215,000 on a 30-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4.45 percent. What are the most points you would be willing to..

  What would the risk-free rate have to be for two stocks

Stock Y has a beta of 1.02 and an expected return of 13.05 percent. Stock Z has a beta of .40 and an expected return of 8 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

  Find the market value of lawrences shares

Common stock value: Variable growth Lawrence Industries’ most recent annual dividend was $1.80 per share (D0 = $1.80), and the firm’s required return is 11%. Find the market value of Lawrence’s shares when:

  Rate of return will you earn on initial investment in bond

Suppose you purchase a 30-year Treasury bond with a 7% annual coupon, initially trading at par. In 10 years time the bond's yield to maturity has risen to 8% (EAR). (Assume $100 face value bond)  If you sell the bond now, what internal rate of return..

  Calculate the return the stock had at time of margin call

An investor buys $8,000 worth of a stock priced at $40 per share using 50% initial margin. The broker charges 6% on the margin loan and requires a 30% maintenance margin. In one year the investor gets a margin call.

  Planning to finance an expansion

The Swift Company is planning to finance an expansion. The principal executives of the company agree that an industrial company such as theirs should finance growth by issuing common stock rather than by taking on additional debt.

  Take care of the maintenance of the equipment

A contractor estimates that maintenance on a new piece of equipment will be $275 for the first month and it will increase by 0.5% each month afterwards. However, the contractor is offered a service contract that would maintain the equipment for a tot..

  Payback and discounted payback statistic for the project

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistic for the pr..

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