Present value of the annual cash flow that is expected

Assignment Help Business Economics

Reference no: EM131011415

An investment, which is worth 10,500 dollars and has an expected return of 16.83 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow is expected in 7 years from today. What is the present value of the annual cash flow that is expected in 5 years from today?

Reference no: EM131011415

Questions Cloud

Intermediate-term bond fund earning : Ahmed Mustafa just turned 22 and wants to have $10,283 saved in 8 years by his 30th birthday. Assuming no additional deposits, if he currently has $6,000 in an intermediate-term bond fund earning 5%, how much will Ahmed have on his 30th birthday? Rou..

Understanding the five stages of group development : Suggest at least one (1) scenario in which understanding the Five Stages of Group Development could help you to work more effectively in groups in the future. Provide a rationale for your response. Then, reflect on an experience that you had being a ..

Prepare a cash budget for the three month period ending dec : Prepare a cash budget for the three-month period ending December 31. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000.

Expected to generate no cash flows for several years : A building is expected to generate no cash flows for several years and then generate annual cash flows forever. What is the value of the building if the first annual cash flow is expected in 5 years from today, the first annual cash flow is expected ..

Present value of the annual cash flow that is expected : An investment, which is worth 10,500 dollars and has an expected return of 16.83 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow..

Compute the break-even point in units-break-even point units : The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $55 and has a variable cost of $29. There are $40,820 in fixed costs involved in the production process. Compute the break-even p..

Open golf championship was held : In 1907, the first U.S. Open Golf Championship was held. The winner’s prize money was $270. In 2012, the winner’s check was $1,470,000. Requirement 1: What was the annual percentage increase in the winner’s check over this period?

What will be the return on your investment : You have $3,100 you want to invest in your classmate’s start up business. You believe the business idea to be great and hope to get $3,950 back at the end of three years. If all goes according to the plan, what will be the return on your investment?

How much money should you put in a savings account : If you want to have $301,301 in 19 years, how much money should you put in a savings account today? Assume that the savings account pays you 6.99 percent, compounded monthly. Cooling Tools, Inc. is currently producing 671 of small refrigerators per m..

User Account

All Pages