The present value of an investment

Assignment Help Financial Management
Reference no: EM13814045

The present value of an investment is $2,500.00 and after a period of 10 years, its future value is $6,000.00. What compound interest rate would be needed for this to occur?

Reference no: EM13814045

Questions Cloud

What is the accounting break-even in units : A manufacture contemplates a change in technology that has fixes costs of $600,000, and depreciation expense of $100,000 (depreciation calculated as $1,000,000 of machinery, depreciated straight-line over 10 years is $100,000 per year (depreciation e..
What is the amount of the operating cash flow for a firm : What is the amount of the operating cash flow for a firm with revenues of $1,000,000; expenses of 400,000; depreciation expense of $100,000; and a 35% marginal tax rate?
Fixed assets will remain at their current level : Sambonoza Enterprises projects its sales next year to be $5 million and expects to earn 5 percent of that amount after taxes. The firm is currently in the process of projecting its financing needs and has made the following assumptions (projections):..
Identify the winner of the election correctly : The television networks often compete on the evening of the day of an election to be the first to identify the winner of the election correctly. One of the techniques often used is the random sampling of voters as they exit the polling booths. Suppos..
The present value of an investment : The present value of an investment is $2,500.00 and after a period of 10 years, its future value is $6,000.00. What compound interest rate would be needed for this to occur?
Underlying asset price is above the strike price : A Answer option has a zero intrinsic value; that is, for a call option, the underlying asset price is below the strike price. or for a put option, the underlying asset price is above the strike price.
Roughly evenly split between credit and cash sales : On March 31, 2013, Mike's Bike Shop had an outstanding accounts receivable of $19,000. Mike's sales are roughly evenly split between credit and cash sales, with the credit sales collected half in the month after the sale and the remainder 2 months af..
Consider the following hypothesis test : A sample of 100 yields x ¯ = 24. The population standard deviation is 12. If a = .05, find the acceptance/rejection region H_0 and determine if you accept or reject the hypothesis H_0 (Draw graph!).
Make sure the products they produce are safe : Pharmaceutical companies perform tests to make sure the products they produce are safe. One test is to make sure that the drugs has 100% potency, so the mean is 100%. Let's say for a particular tablet product that the production process has a populat..

Reviews

Write a Review

Financial Management Questions & Answers

  Find the proceeds and find the effective rate

Bill signed a $8,000 discount note at the bank which charged him a 6.5% discount rate. The loan is for 300 days. Please show all work. Find the proceeds: Find the effective rate:

  What is recognized gain or loss and basis of office building

Bubba exchanges a warehouse for a building she will use as an office building. The adjusted basis of the warehouse is $600,000, and the fair market value of the office building is $350,000. In addition, the taxpayer receives cash of $150,000. What is..

  Anticipated constant growth rate for dividends

A share of stock is currently selling for $31.80. If the anticipated constant growth rate for dividends is 6% and investors are seeking a 16% return, what is the dividend just paid?

  What are the annual taxes owed on the interest

Molly Matters Inc. issues a split-coupon $1,000 bond that matures in seven years. Interest payments are $70 a year (7 percent) and start after three years have lapsed. The bond initially sells for a discounted price of $816.3. You are in the 30 perce..

  How does financial management vary from country to country

What are some common barriers to entry for a firm entering a new country for business? And how does financial management vary from country to country?

  Issue a bond with semi-annual coupon payments

XYZ Company is about to issue a bond with semi-annual coupon payments, a coupon rate of 9%, and par value of $1,000. The yield-to-maturity for this bond is 11%. What is the price of the bond if the bond matures in five, ten, fifteen, or twenty years?

  Firms after-tax component cost of debt

A company's 8% coupon rate, semi-annual payment, $1,000 par value bond that matures in 25 years sells at a price of $558.92. The company's federal-plus-state tax rate is 30%. What is the firm's after-tax component cost of debt for purposes of calcula..

  Identify and describe the cash-based liquidity measures

Identify and describe the cash-based liquidity measures. How would you interpret the cash burn rate? Discuss the overall trend in firms’ cash holding.

  Sensitivity of the NPV to the price and quantity

Gilla Golf is evaluating a new golf club. The clubs will sell for $875 per set and have a variable cost of $430 per set. The company has spent $150,000 for a marketing study that determined the company will sell 60,000 sets per year for seven years. ..

  Various discounting periods-semi annual compounding

Present value for various discounting periods-Find the present value of $800 due in the future under each of these conditions: 15% nominal rate, semi annual compounding, discounted back 10 years.

  In order to develop effective strategies it is critical to

external environmental scannbspin order to develop effective strategies it is critical to understand the marketplace

  Calculate the before-tax and after-tax costs of debt

Cost of debt using both methods Currently, Warren Industries can sell 15-year, $1,000-par-value bonds paying annual interest at a 12% coupon rate. Find the net proceeds from sale of the bond, Nd. Calculate the before-tax and after-tax costs of debt.

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