The present value of the cash flows

Assignment Help Financial Management
Reference no: EM131521889

The present value of the following cash flows is known to be $6,939.91; $500 today, $2,000 in one year, and $5,000 in two years. What discount rate is being used? Please show step by step solution and how to solve using the financial calculator.

Reference no: EM131521889

Questions Cloud

How much will you have saved for retirement : You are 29 years old and decide to start saving for your retirement. How much will you have saved for retirement?
How much money did he have for retirement : He left the money in this account for 21 years until he was ready to retire. How much money did he have for retirement?
Differences between quoted and effective rates : When comparing investment it is best not to rely solely on quoted rates. Compounding typically leads to differences between quoted and effective rates.
How much money did he have for retirement : He left the money in this account for 20 years until he was ready to retire. How much money did he have for retirement?
The present value of the cash flows : The present value of the following cash flows is known to be $6,939.91; $500 today, What discount rate is being used?
Considered gift of less than the donor entire interest : if not transferred in trust, would be considered a gift of less than the donor's entire interest and, thus, not currently deductible?
What is your monthly repayment : Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 17000 at the time you start repayment, What is your monthly repayment?
Calculate the firm operating breakeven point in dollars : Calculate the firm's operating breakeven point in units. Calculate the firm's operating breakeven point in dollars.
What is the value of the erosion : The new mid-range spa will sell for $8,000. What is the value of the erosion?

Reviews

Write a Review

Financial Management Questions & Answers

  How might jonathon recognize a breakout

Why do you think Jonathon is sitting on the sidelines while the stock is trading in the congestion area? - How might Jonathon recognize a breakout?

  What is the firm weighted average cost of capital

The Imaginary Products Co. currently has $300 million of market value debt outstanding. The 9 percent coupon bonds (semi-annual) have a maturity of 15 years and are currently priced at $1,440.03 per bond. If Imaginary is subject to a 40 percent margi..

  How much interest was earned on the investment

Find the future value of a $160,000 Certificate of Deposit that pays compounded interest every six months at the rate of 4% per year. The CD has a term of 5 years. How much interest was earned on the investment?

  Annual cash dividend policy

Miles Hardware has an annual cash dividend policy that raises the dividend each year by 10.00?%.

  Supply has bond issue outstanding

Culpepper Supply has a bond issue outstanding that pays a 7.5 percent coupon and matures in 14 years. The bonds have a par value of $1,000 and a market price of $942.90. Interest is paid semiannually. What is the yield to maturity?

  Fast-track investments-interest rate futures

T. J. Patrick is a young, successful industrial designer in Portland, Oregon, who enjoys the excitement of commodities speculation. T. J. has been dabbling in commodities since he was a teenager—he was introduced to this market by his dad, who is a g..

  Estimated present value of the cash inflows

Bruce Moneybags owns several restaurants and hotels near a local interstate. One restaurant, Beef and More, originally cost $1.8 million, is currently fully paid for, but needs modernized. The estimated present value of the cash inflows from the reno..

  The reasons for making such investments

Assume that you have a client who wants to make an investment of $ 400,000. Explain what investment recommendations you would make (stocks , bonds, t-bills, mutual funds, etc.) and the reasons for making such investments. You can choose the investor ..

  The expected return on the market-what is camp beta

The expected return on the market is 5% percent and the risk free return is 1.5% percent. Camp Company stock is currently priced at $42.00 per share and is expected to pay its next annual dividend in 1 year. Camp's next dividend is expected to be $1...

  Cost of common stock equity-growth rate of dividends

Ross Textiles wishes to measure its cost of common stock equity. The firms stock is currently selling for $57.50. The firm expects to pay a $3.40 dividend at the end of the year (2016). Determine the growth rate of dividends from 2011 to 2015. Determ..

  What is your best estimate of the aftertax cost of debt

Shanken Corp. issued a bond with a maturity of 20 years and a semiannual coupon rate of 10 percent 4 years ago. The bond currently sells for 97 percent of its face value. What is the company’s total book value of debt? What is the company’s total mar..

  Large lump sum deposit today instead of annual deposits

You would like to have $56,000 in 12 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 6 percent interest compounded annually. Your first payment will be made at the end of the year. If you decid..

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