Streams of cash flows-future cash flows in stream

Assignment Help Financial Management

Reference no: EM131025761

Consider two streams of cash flows, A & B. Stream A's first cash flow is $8,900 and is received three years from today. Future cash flows in Stream A grow by 4 percent in perpetuity. Stream B's first cash flow is -$10,000, is received two years from today, and will continue in perpetuity. Assume the appropriate discount rate is 12 percent. What is the present value of each stream?

Reference no: EM131025761

Questions Cloud

Investors expect the market rate of return : Investors expect the market rate of return this year to be 15.00%. The expected rate of return on a stock with a beta of 1.3 is currently 19.50%. If the market return this year turns out to be 12.80%, how would you revise your expectation of the rate..

International business-assignment : The objective of this assignment is to have you take the theory you learned through the textbook and slides and apply it to real world international business issues facing us today. In providing your answers to the essay questions, you must demons..

Determine the inductance of the coil : Consider the magnetic circuit shown in Figure. The core has a relative permeability of 1500. Carefully estimate the flux density in the air gap.

Show that s and t are linear and st is not equal to ts : Let X be a finite dimensional linear space. Show that, for every subspace Y of X, Y perp perp = Y (that is, the annihilator of the annihilator of Y is Y)

Streams of cash flows-future cash flows in stream : Consider two streams of cash flows, A & B. Stream A's first cash flow is $8,900 and is received three years from today. Future cash flows in Stream A grow by 4 percent in perpetuity. Stream B's first cash flow is -$10,000, is received two years from ..

What is the geometric average return on this stock : Over the past four years a stock had prices of 15.40, 15.85, 16.30, and 15.70, respectively. The stock pays an annual dividene of .50 a share. What is the geometric average return on this stock please show work

Appropriate discount rate to reflect risk of the strategy : Capital budgeting analysis is not a framework for evaluating all business decisions; it is only a tool for the “financial” types. Proper analysis will identify irrelevant cash flows and an appropriate discount rate to reflect the risk of the strategy..

Calculate the flexed and actual budget : Calculate the flexed and actual budget and calculate the variances - Sales variances, volume and price and direct material variances, usage and price

Determine the voltage induced in the wire segment : A 20-cm length of wire moves at 15m/s in a constant flux density of 0.4T. The wire, direction of motion, and direction of the flux are mutually perpendicular. Determine the voltage induced in the wire segment.

User Account

All Pages