Present value of cash flows-fox co

Assignment Help Finance Basics
Reference no: EM132664019

Fox Co. has identified an investment project with the following cash flows.

YearCash Flow1 $1,230 2 1,150 3 1,560 4 1,920

a. If the discount rate is 11 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. What is the present value at 16 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

c. What is the present value at 22 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM132664019

Questions Cloud

New forms of financial inclusion : Can the alternative credit-scoring tools enhance financial inclusion?
How would you personally define ethics : How would you personally define ethics? How do business ethics differ from your personal ethics? Do you try to always be ethical? Why or why not?
What are some of the drawbacks to greed : What are some of the drawbacks to greed? Can you think of other issues that might lead to unethical behavior?
How does fintech compare to regular banking : How does Fintech compare to regular banking? Discuss R3 and its distributed ledger technology mission.
Present value of cash flows-fox co : If the discount rate is 11 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal pl
Server virtualization-describe the organization environment : Describe the organization's environment, and evaluate its preparedness for virtualization.
Find green household itemized deductions : Their adjusted gross income is $121,700 How much are the Green household's itemized deductions?
What are the benefits and risk of balance sheet : What are the benefits and risk of balance sheet lending business model?
Physical security mitigation for external threats : Physical Security mitigation for External Threats and Countermeasures.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the effective annual interest rate

You borrow $10,000 from a bank, to be repaid in 5 equal annual installments of $2,300 staring 3 years from now. What is the effective annual interest rate

  Endorse the fund investment policy

Advise Minco's employees on whether to endorse the fund's investment policy.

  What is the best estimate of lloyd''s nominal interest rate

Lloyd Corporation's 14 percent coupon rate, semiannual payment, $1,000 par value bonds, that mature in 30 years, are callable 5 years from now at a price of $1,050. The bonds sell at a price of $1,353.54, and the yield curve is flat. Assuming that in..

  How much life insurance should he buy

And then rounding up to the next $50,000 how much life insurance should he buy?

  What is the net present value of the more

A firm that purchases electricity from the local utility is considering installing a steam generator. A large generator costs

  Understanding the variation of bond values and yields

Understanding the variation of bond values and yields. Finding the Bond Maturity. Shinoda Corp. has 8 percent coupon bonds making annual payment

  How much would it cost him to buy the annuity today

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $5,300 of income a year for 30 years, with the first payment coming

  Statements of the companies to make his investment decisions

Assume that your brother wants to buy shares of either Company A or B and is looking for your advice on how to use the financial

  What is the break-even stock price

Suppose a stock is currently selling at $42, and there are two call options available on this stock with the following characteristics.

  Calculate pre-tax cost of debt capital

Calculate Pre-tax cost of debt capital. What is the current price of the bonds if the coupon rate on those bonds is 11.43 percent?

  Computing expected return and standard deviation portfolio

Computing expected return and standard deviation of portfolio and What are the weights for investing in the risk-free asset and the S&P that produce a standard deviation for the entire portfolio that is twice the standard deviation of the S&P

  How improvements may be made to the role in today economy

Evaluate how financial analysts ensure that capital markets are efficient, suggesting how improvements may be made to their role in today's economy.

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