Present value of a cash-flow stream

Assignment Help Finance Basics
Reference no: EM132000602

In the context of an investment, what happens to the present value of a cash-flow stream when the discount rate increases?

Reference no: EM132000602

Questions Cloud

What is the project irr : If the firm's cost of capital is 14 percent, what is the project's IRR? (Hint: Is the firm's cost of capital relevant to an IRR calculation?)
What amount of the insurance premium may tim deduct : What amount of the insurance premium may Tim deduct in 2012 for each of the following alternative scenarios
What is the modified internal rate of return : If the appropriate discount rate is 12%, what is the modified internal rate of return (MIRR) that Louie would earn?
What will her investment account be worth at the end : Sue plans to save $4,500, $0, and $5,500 at the end of each of the next three years, respectively.
Present value of a cash-flow stream : In the context of an investment, what happens to the present value of a cash-flow stream when the discount rate increases?
How would the following changes in price affect revenue : How would the following changes in price affect total revenue? That is, would total revenue increase, decline, or remain unchanged?
What amount can tim deduct : On December 22, 2012, Tim's entertainment business sponsored a Canadian festival in a rented auditorium at a local college. What amount can Tim deduct in 2012
What is the project aftertax operating cash flow : What is the project's aftertax operating cash flow during years 14 from the machine?
What is intended value of the subject based on both comps : The subject property has three bedrooms , one bath , and is in good condition. Two highly comparable properties have sold near the subject recently.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the bond price

What is the bond's price if comparable debt yields 12%?

  Calculate the present value annuity in millions

Calculate the present value annuity in millions of dollars of these cash flows assuming a discount rate of 5%.

  Calculate the intrinsic value using the multistage model

Micro Corp. just paid dividends of $2 per share. Assume that over the next three years dividends will grow as follows, 5% next year, 15% in year two, and 25% in year 3. Calculate the intrinsic value using the multistage model

  Ebit and optimal level of leverage

Describe EBIT and discuss why optimal level of leverage from a tax-saving perspective is the level at which interest equals EBIT.

  What percentage is the lender margin for the loan

Tom 3/1 ARM will be based on the LIBOR index which stands at 4.5% today. The interest rate caps for his loan are 2/1/6.

  Famas llamas has a weighted average cost of capital of 96

famas llamas has a weighted average cost of capital of 9.6 percent. the companys cost of equity is 12 percent and its

  Firms should adopt positive npv projects

As the text notes, firms should adopt positive NPV projects, and reject negative NPV projects. But what if a project has a $0 NPV?

  Computation of net present value and profitability index

Computation of net present value and profitability index of a project and expected net cash flows of $3,000 a year for 10 years if the project's required return is 12 percent

  Role of colonization-path to independence

Study the development process of Jamaica by addressing the main themes covered in the textbook: role of colonization/path to independence/nation formation; early development policies;

  What is the current yield for messinger bonds

Messenger, Inc. bonds have a 4% coupon rate with semiannual coupon payments and a $1,000 par value. The bonds have 11 years until maturity, and sell for $925. What is the current yield for Messinger's bonds?

  Determine the breakpoint where new stock issued

Suppose your company is expected to earn $4.0 million in net income next year of which it will pay out 40% in dividends. If equity represents 50 percent of your capital,

  Calculate the residual income or eva

Hospital is a division of Superior Healthcare managed as an investment center. In the last year, the hospital reported an after-tax income of $2,500,000.

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