Investment that generates the cash flows

Assignment Help Financial Management

Reference no: EM13883364

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 8.4 percent, compounded annually.

End of year

1. $780

2. $1,863

3. $1,477

4. $2,884

What is the present value of this investment if 8.4 percent per year is the appropriate discount rate?

Round the answer to two decimal places.

Reference no: EM13883364

Questions Cloud

What has been your experience with goals : However, sometimes goals are set that can't be reached due to environmental, time constraints, and other factors. What has been your experience with goals

What is the rate limiting factor in the renin-angiotensin : What is the rate limiting factor in the Renin-Angiotensin-Aldosterone System?

The beta of firm is more likely to be high : The beta of a firm is more likely to be high under what two conditions?

Projects competing for the firms fixed capital budget : Galaxy Satellite Co. is attempting to select the best group of independent projects competing for the firm's fixed capital budget of $10,000,000. Any unused portion of this budget will earn less than its 20 percent cost of capital. Use the NPV approa..

Investment that generates the cash flows : You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 8.4 percent, compounded annually.

Calculating transactions required : Cow Chips, Inc., a large fertilizer distributor based in California, is planning to use a lockbox system to speed up collections from its customers located on the East Coast. A Philadelphia-area bank will provide this service for an annual fee of $15..

Describing the key physical and physiological characteristic : describing the key physical and physiological characteristics

Assume that the expected return for security : Assume that the % expected return for security A and the market M for a good, normal and bad economy (probabilities .3,.4,.3) are 20, 16, and 10 for A and 8, 4, and 12 for M. Also assume that you invest 40% in A and 60% in M. Compute the standard dev..

Policies that affect information system security : Write a 1,050- to 1,400-word paper discussing managerial issues associated with managing an organization's information systems infrastructure. Include the following: Information related to change management and preventative maintenance and Policies..

User Account

All Pages