Present value of future cash flows

Assignment Help Finance Basics

Reference no: EM1332526

XYZ, Inc. has an offer to buy ABC & Sons. XYZ thinks ABC can produce cash flows of $5k, $9k, & $15k over the next three years (respectively). After that, XYZ thinks ABC will be worthless. Using a 14% rate of return, XYZ must make it's purchase decision now. What should XYZ pay today to buy ABC?

Please use Excel (preferably with four columns) to solve.

Reference no: EM1332526

Questions Cloud

The web page is passed back to the client : One of the features of Javascript that we have been looking at this week is that code is interpreted within the browser environment, on client machine.

Benefits of networks for a social work educator : Describe the benefits and disadvantages of such networks for a social work practitioner or educator.

Promoting racial profiling : Does the Arizona Senate Bill 1070 promote racial profiling? Is it appropriate for the responsibility for this type of enforcement to be at the state and local level?

Dilomatic tensions over the war with iraq also patriotic led : Dilomatic tensions over the war with Iraq also patriotic fervor led the state legislature in South Carolina to initiate a resolution boycotting French products.

Present value of future cash flows : XYZ, Inc. has an offer to buy ABC & Sons. XYZ thinks ABC can produce cash flows of $5k, $9k, & $15k over the next three years (respectively).

How are css, dhtml and xml associated : Find out an article or a resource about CSS, DHTML or XML. Include the URL of the original article or resource and summarize it.

Internal and external learning conditions : What is the difference between internal and external learning conditions and Which do you feel is more important for success?

Describe some alternatives measures of a firm''s performance : Performance Measures. Describe some alternatives measures of a firm's overall performance. What are their advantages and disadvantages? In each case discuss what benchmarks you might use to judge whether performance is satisfactory?

Write a letter to the editor of your local paper : Write a letter to the editor of your local paper either supporting or criticizing the proposed $500,000 subsidy.

User Account

All Pages