User Account

All Pages

Present value of cash returns-swell computer company

Assignment Help Finance Basics
Reference no: EM132544271

The Swell Computer Company has developed a new line of desktop computers. It is estimated that the cash returns generated by the new product line will be $800,000 per year for the next five years, and then $500,000 per year for 3 years after that (the cash returns occur at the end of each year). At a 9% interest rate, what is the present value of these cash returns?

Reference no: EM132544271

Questions Cloud

Find the corporations current earnings and profits : Abbot Corporation reported a net operating loss of $520,000 in 20X3, Find the corporation's current earnings and profits for 20X3
Total interest cost over the term of the mortgage : You are considering the purchase of a house. The house costs $300,000. You have no down payment. You have several financing alternatives.
What amount of loss does Julian recognize : Julian's tax basis in the Lemon stock was $870,000. What amount of loss does Julian recognize in the exchange
Calculate any two financial ratios : Calculate any two financial ratios that you can use in the given case study. Discuss the implications of the ratios that vou have calculated.
Present value of cash returns-swell computer company : The Swell Computer Company has developed a new line of desktop computers. It is estimated that the cash returns generated by the new product line
What is the amount realized by Camille in the exchange : Camille also incurred selling expenses of $118. What is the amount realized by Camille in the exchange
What is the most you would be willing to pay for bond : The bond pays $30 every six months. The current market interest rate is 8%. What is the most you would be willing to pay for this bond?
What amount of loss does Celeste recognize : Celeste's tax basis in the Supply Chain stock was $1,315,000. What amount of loss does Celeste recognize in the exchange
What is the journal entries for bayu bhd to record leasing : What is the journal entries for BAYU Bhd to record leasing activities during the first year of the lease term (including the amortization schedule)

Reviews

Write a Review

Finance Basics Questions & Answers

  Rate of interest

Eugene is planning his retirement. The rate of interest that he can lend and borrow at the bank is 6 percent.

  Are there conflicts of interest in the given deal

Are there conflicts of interest in this deal? If yes, will they help or hurt the deal? Are there real potential synergies in this merger? Will this deal create value for the shareholders of Tesla?Is the deal rightly priced?

  Common shares outstanding on january 1 50000 shares july 1

assume the following facts for the current yearcommon shares outstanding on january 1 50000 shares july 1 2-for-1

  What will happen to the price per share

This new growth strategy will require the company to reinvest 30% of their earnings starting at the end of this year (t = 1).

  Differences in risks that cause the bank

What are the differences in risks that cause the bank to offer both types of mortgages yet with different initial loan rates?

  Short-term government securities

Schumann's marginal federal-plus-state tax rate is 40 percent. The new bonds would be issued 1 month before the old bonds are called, with the proceeds being invested in short-term government securities returning 5 percent annually during the int..

  Calculate the cost of equity for the levered

Calculate the cost of equity for the levered firm according to MM proposition I without taxes

  Determine the variable cost per unit

Determine the variable cost per unit, the total variable cost, and the total contribution margin.

  The earthquake and tsunami that struck japan in march 2011

the earthquake and tsunami that struck japan in march 2011 provide an opportunity to demonstrate why an it department

  Developing a new product

Your company just spent $10 million developing a new product - the Aaron Rodgers bobble-head toy - and you have to decide whether or not to launch the product.

  What would be the new required return on the stock

What would be the new required return on the stock if the return on the market increased to 20.00% while the risk-free rate and beta remained unchanged?

  What is the lowest possible average cost of capital

What is the lowest possible average cost of capital for Brachman if the firm raises $30 million, maintains their desired capital structure and they are in a 30%

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd