Present and future values of cash flow stream

Assignment Help Financial Management
Reference no: EM132072635

Present and future values of a cash flow stream An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 12% annually, what is its present value? Round your answer to the nearest cent. $ If other investments of equal risk earn 12% annually, what is its future value? Round your answer to the nearest cent.

Reference no: EM132072635

Questions Cloud

What is expected capital gains yield : What is the expected capital gains yield?
Manufacturer shares for client portfolio : Assume that you are a trust officer for the Afri Bank. You are attempting to select a pharmaceutical manufacturer’s shares for a client’s portfolio.
Current bid-ask spread for berkshire hathaway class shares : What is the current bid/ask spread for Berkshire Hathaway Class A shares?
Annual return with monthly compounding : Saul sold the golf clubs 10 years later for $10,000. What was Paul's annual return with monthly compounding (an APR)?
Present and future values of cash flow stream : Present and future values of a cash flow stream An investment will pay $50 at the end of each of the next 3 years,
Annually with quarterly compounding : How much must John invest in each quarter if he earns 8% annually with quarterly compounding?
Chance to invest in mortgage backed securities : Your broker calls to offer you the investment opportunity of a lifetime, the chance to invest in mortgage backed securities.
Proposed new issuance of corporate bonds : Write a corporate management report in which you present a valuation model for a proposed new issuance of corporate bonds with face value of $70 million dollars
How much less will you pay in total interest : Your credit card has a balance of $3100 and annual interest rate of 18%. How much more must you pay each month and how much less will you pay in total interest.

Reviews

Write a Review

Financial Management Questions & Answers

  Finance its expansion into new markets

The Hagelin Corporation needs to raise $84 million to finance its expansion into new markets. how many shares need to be sold?

  What is the current market value of andes stock

Andes corp. has just paid an annual dividend of $3.34. If the market expects Andes dividends to grow at an annual rate of 4.9%, and the required return on Andes stock is 16%, what is the current market value of Andes stock (P0)? State your answer in ..

  Eve sensitivity to interest rate changes

Discuss impact each of following will have, in general, on EVE sensitivity to change in interest rates. Consider two cases where rates rise sharply-fall sharply

  Considering new three-year expansion project

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.47 million.

  Monthly returns of value-weighted market index

Calculate Beta and of each stock by running regression of monthly returns of stock (excess of risk-free rate) on monthly returns of value-weighted market index

  How large will your last payment be

Your last deposit, which will occur at the end of Year 6, will be for less than $1,500 if less is needed to reach $10,000. How large will your last payment be?

  Why is it important when dealing with the cost of capital

How can you find the weights to be used for the WACC and which are more appropriate (market versus book)? What does WACC stand for and why is it important when dealing with the Cost of Capital?

  Calculate the base case cash flow and npv

We are evaluating a project that costs $864,000. Has an eight-year life and has no salvage value. Assume that depreciation is straight line to zero over the life of the project. Sales are projected at 71,000 units per year. Calculate the accounting b..

  What will be its dividend payout ratio

Puckett Products is planning for $2.9 million in capital expenditures next year. Puckett's target capital structure consists of 65% debt and 35% equity. if net income next year is $2.5 million and Puckett follows a residual distribution policy with a..

  Required rates of returns for the three securities

What are the corresponding required rates of returns for the three securities?

  Traditional pension plan

A recent college graduate has taken a new job at Work LLC, and since the company does not offer a traditional pension plan,

  Determine the minimum yield rate an investor would receive

Suppose a bond has a term of 17 years with annual coupons. The bond has a face value of 508 and a redemption value of 494.  The bond may be called at any time on or after the 9th coupon payment. The price paid for the bond is 476. The minimum yield r..

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