Non discounted cash flow diagram for this situation

Assignment Help Financial Management

Reference no: EM131821478

You begin work on June 1 and work until August 31, and receive pay on the last day of the month. Your expenses for these three months are $1500 I mo. At the end of September, you make a $7000 payment, and you make an identical payment at the end of January. Your expenses from September 1 through May 31 are $1000/mo.

a. Draw a discrete, nondiscounted cash flow diagram for this situation.

b. If you earn 4% interest, compounded monthly, on the money until it is spent, what monthly salary is required from June 1 through August 31 to break even on May 31?

c. If you earn 4% interest, compounded monthly, on the money until it is spent and the salary is $4000 I mo, how much would you have to earn each month from a different job from September through May to break even on May 31?

d. What situation is depicted in this problem?

Reference no: EM131821478

Questions Cloud

Prepare schedule of cost of goods manufactured for the year : Star Videos, Inc., produces short musical videos for sale to retail outlets. Prepare a schedule of cost of goods manufactured for the year.

What is the effect interest rate on the loan : What is the effect interest rate on the loan if the present principal of the note is $10,161?

Source of risk when investing in foreign markets : Political risk is a source of risk when investing in foreign markets. Please provide a complete list of political risk.

Annual sales figure when evaluating this project : What is the amount to use as the annual sales figure when evaluating this project?

Non discounted cash flow diagram for this situation : Draw a discrete, non discounted cash flow diagram for this situation. What situation is depicted in this problem?

What is the aftertax cash flow from the sale of this asset : what is the aftertax cash flow from the sale of this asset?

Cash flow amount to use initial investment in fixed assets : What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Duration of two-year bond that pays annual coupon : What is the duration of a two-year bond that pays an annual coupon of 10.9 percent and has a current yield to maturity of 13.5 percent?

What is the duration of four-year treasury bond : What is the duration of a four-year Treasury bond with a 6.5 percent semiannual coupon selling at par?

User Account

All Pages