Initial investment will increase or decrease

Assignment Help Finance Basics
Reference no: EM132543941

a. You need $40,750 at the end of tenth year, the available option that your bank is offering you is 10% compounded annually. How much you need to invest today so as to receive your desire amount at the end of tenure.

b. How your invested amount will change if the offered rate from the bank changes from 10% to 15%? Will the initial investment will increase or decrease? Give your response in not more than three sentences.

Reference no: EM132543941

Questions Cloud

How many mp3 players must swifty sell : Variable costs are $40 per unit, and fixed costs total $120000. How many MP3 players must Swifty sell to earn net income of $300000
Estimate diluted earnings per share : Estimate diluted earnings per share. The preference share is convertible into ordinary share in the ratio of two ordinary share in the ratio of two ordinary
What is expected dividend in each of next 4 years : Coca Cola private limited paid a $2 per share dividend yesterday. It is expected to grow steadily at the rate of 5% per year.
Discuss degrees of market efficiency : Discuss Degrees of Market Efficiency. In essay form elaborate Implications of Market Efficiency for Financial Managers
Initial investment will increase or decrease : Will the initial investment will increase or decrease? Give your response in not more than three sentences.
What is Vaughns break-even point in units : Vaughn reported the following information for the current year: Sales (53000 units) $1060000, What is Vaughns break-even point in units
Discuss the implication of reporting nci as a separate item : Discuss the implication of reporting NCI as a separate item of owner's equity. Non-controlling interest (NCI) is the ownership interest of those shareholders
Identify the sources or drivers of intergroup conflict : Identify the sources or drivers of the intergroup conflict using the concepts provided in our text and other materials as your perspective for analysis.
Find and calculate the irr for the project : Calculate the IRR for this project? If the present value of future cash flows at discount rate 12% for project (A) is $20,557 project has regular cash

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the npv of the project in given case

Profound Products, Inc., is planning to market a new banana peeler. Projected sales are $80,000 per year for the first two years, declining at a rate of 25%.

  What were annual sales for stacky in 2017

At the end of 2017, Stacky Corp. had $500,000 in liabilities and a debt-to-assets ratio of 0.5. For 2017, Stacky had an asset turnover of 3.0.

  What are the components of working capital management which

one of your long-standing clients is a domestic manufacturer who up until now has not only manufactured their products

  What is the 2007 operating cash flow

Q1) What is the 2007 operating cash flow? Q2) What is the 2007 cash flow to creditors?

  Importance of maximizing shareholders wealth

Discuss and explain the importance of maximizing shareholders wealth. Why does finance regard share value maximization as the primary corporate objective?

  Evaluate and comment on both the earnings quality and the

consider the following while accrual accounting information is imperfect ignoring it and making cash flows the basis

  What is the maximum debt ratio-ferri enterprises

What is the maximum debt ratio (measured as Total debt/Total capital) the firm can use?

  Mary has been working at the university for 25 years with

mary has been working at the university for 25 years with an excellent record of service. as a result the board wants

  Profit by hedging transactions

How much will the U.S. firm profit by hedging this transactions? Assume an annual risk-free interest rate of 5.0%.

  What is the current price of fidelity corporation stock

Fidelity Corporation has just paid its annual dividend of $5.50, today, and dividends are expected to grow at a rate of 1.5 percent, per year

  Is this a good investment

If a stock price is 123.51, the earnings per share is 5.95 and the price to earnings ratio is 20.76, does that mean for every share the investor gets.

  Multiple choice questions on cash flow method and sources

multiple choice questions on cash flow method and sources of external capital.1.nbspwhat does the free cash flow method

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