Proper discount rate

Assignment Help Business Management
Reference no: EM131949586

You have been approached by a friend who is starting a minor league baseball team in your city. He is seeking ten investors to put up $50,000 each. Expected net cash inflows over each of the next ten years are $350,000. You believe a proper discount rate for this investment is 20%. Should you make the investment?

Reference no: EM131949586

Questions Cloud

Determine the importance of generic drug availability : Determine the importance of generic drug availability in relationship to healthcare quality and cost.
Calculate the current stock price and the stock price : If the market capitalization rate is 16 percent, calculate the current stock price and the stock price for each of the next three years.
Explain the measuring scale associated with the question : Your second should be a question associated with a quantitative variable. Explain the measuring scale associated with the question.
What are the rational and irrational reasons : What are the rational and irrational reasons you think that may lead to high returns in small and value stock?
Proper discount rate : Expected net cash inflows over each of the next ten years are $350,000. You believe a proper discount rate for this investment is 20%.
Develop a code of ethics for a company : Imagine that you are asked to develop a code of ethics for a company. On which of the 'rules' discussed in the lesson would you base this code, and why?
High-share price range : Why managers of firms might prefer that their firm's stock be traded in a moderate per-share range rather than a high-share price range.
What is the difference between a discrepancy and a recheck : Explain the different purposes of the A.M. and P.M. room checks. Explain the term discrepancy. What is the difference between a discrepancy and a recheck?
What does this example suggest about credit analysis : Would the bank be able to spend more if the loan amount was greater? What does this example suggest about credit analysis?

Reviews

Write a Review

Business Management Questions & Answers

  Compare and contrast the approach to management

Determine what other management differences have impacted the relative success of Kodak and Fujifilm. Provide specific examples to support your response.

  Influencing quality improvement activities

How does the professional nurse function as a leader in promoting quality care and influencing quality improvement activities?

  Explain each precaution using a specific example

What precautions can the Federal Reserve take to avoid inflation for the entire economy?

  Describe expected outcomes if interventions are successful

Describe the expected outcomes if the interventions are successful. Determine the levels in the organization that might be impacted by the managed changes.

  Identify emotions prior to making any kind of decision

Do you believe emotions are involved in decision making. If yes, what are the emotions involved? If not, why do you think that emotions are not involved in decision making

  How can steeple affect usa gas fracking business

How can steeple affect usa gas fracking business

  Assignment on ehr systems

The EHR has become widely adopted by healthcare facilities throughout the nation and around the world.

  What will the monthly payment be

The loan is for $20,000, monthly payments are made for 5 years, and the annual interest rate is 1.8%. What will the monthly payment be?

  Alcoholic beverages-gambling companies

The barrier fund is a mutual fund that favors "products or services often considered socially irresponsible," including investments in tobacco

  Explaining bazerman and moore biases

Bazerman and Moore suggest that we should understand the biases of others.

  Intergroup competition are the same or different

Discuss whether intergroup conflict and intergroup competition are the same or different. Provide examples to support your position. What strategies can a leader use to ensure that there are positive results from the conflict or competition?

  List the elements required to form a general partnership and

List the elements required to form a general partnership and the statutory requirements for forming a limited partnership.

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