Present value computations

Assignment Help Financial Management
Reference no: EM131917942

Present Value Computations

Assuming that money is worth 10%, compute the present value of:

1. $16,000 received 15 years from today.

$Answer

2. The right to inherit $4,500,000 14 years from now.

$Answer

3. The right to receive $12,000 at the end of each of the next six years.

$Answer

4. The obligation to pay $11,000 at the end of each of the next 10 years.

$Answer

5. The right to receive $20,000 at the end of the 7th, 8th, 9th, and 10th years from today.

$Answer

Reference no: EM131917942

Questions Cloud

Multiple internal rates of return from the project : determine the multiple internal rates of return from the project. determine the duration of the project.
What is expected return on equity : what is the expected Return on Equity?
Which no arbitrage opportunity exists : Find the values of c for which no arbitrage opportunity exists (for what values of c does a solution to the system exist?).
Determine variable factory overhead controllable variance : Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance.
Present value computations : Present Value Computations-Assuming that money is worth 10%, compute the present value of: $16,000 received 15 years from today.
Calculate the financial ratios below for the year : omplete the financial ratios for the company in the 2014 column. Calculate the financial ratios below for the year 2014.
Difference between underwriting and market making : What is the difference between underwriting and market making ?
Net profit margin gross margin operating margin return : Net Profit Margin Gross Margin Operating Margin Return on Assets Return on Equity Liquidity Ratios:
Net present value method and project is unacceptable : Cyan Inc. uses the net present value (NPV) method and determines that the project is unacceptable.

Reviews

Write a Review

Financial Management Questions & Answers

  The target capital structure consists

Sorensen System's Inc. is expected to pay a $2.50 dividend at year end (D1=$2.50), the dividend is expected to grow at a constant rate of 5.50% each year, and the common stock currently sells for $52.50 a share. The before-tax cost of debt is 7.50% a..

  Present value of a single payment

Present Value of a Single Payment- What is the present value of a security that will pay $25,000 in 20 years if securities of equal risk pay 8% annually?

  What is target fixed assets and sales ratio

Walter Industries has $4 billion in sales and $1.7 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity. What is Walter's target fixed assets/Sales ratio? What level of sales could Walter Industries have obt..

  Assume a stocks risk and expected rate of return

Assume a stock's risk and expected rate of return are plotted on a graph where the y-axis is required rate of return and the x-axis is risk. Under which of the following conditions is the stock most likely to be sold (if owned) or not purchased?

  Produces and markets all types of electronics goods

Hi-Tech Electronics Limited was established in 2006 in Kualalampur, Malaysia. It produces and markets all types of electronics goods in most of the Asian and Pacific countries. The national employees demanded the management to pay equally with that o..

  Prominent consumer products firm

Desert Rose, Inc., a prominent consumer products firm, is debating whether to convert its all-equity capital structure to one that is 20 percent debt.

  Annual continuously compounded rate of interest

If the stock is currently priced at $48.40, what is the annual continuously compounded rate of interest?

  Expected return on the y-axis-standard deviation on x-axis

Stock A has expected return of 12% and standard deviation of 18%. you want a graph with expected return on the y-axis and standard deviation on the x-axis.

  Purpose of capturing the closest to risk free interest rate

Which of the following securities is often used for the purpose of capturing the closest to a risk free interest rate?

  Firm levered cost of capital if adopts new capital structure

An unlevered firm has a cost of capital of 11.3 percent and a tax rate of 34 percent. The firm is considering a new capital structure with 60 percent debt. The interest rate on the debt would be 7.25 percent. What would be the firm's levered cost of ..

  Importance of the time value of money concepts

Define and discuss the importance of the time value of money concepts including compounding (future value), discounting (present value), and annuities. Why do organization leaders need to understand these concepts?

  What is the firms cost of equity capital

A firm has a market value of equity of $30,000. It borrows $7500 at a cost of 8%. If the firm’s assets have a cost of capital of 15%, what is the firm's cost of equity capital? Assume no taxes.

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