The present value of this stream of cash flows

Assignment Help Financial Management
Reference no: EM131993794

The state lottery's million-dollar payout provides for $1.4 million to be paid in 25 installments of $56, 000 per payment.

The first $56, 000 payment is made immediately, and the 24 remaining $56, 000 payments occur at the end of each of next 24 years.

If 12 percent is the discount rate, what is the present value of this stream of cash flows?

If 24 percent is the discount rate, what is the present value of the cash flows?

a. If 12 percent is the discount rate, the present value of the annually due is $

Reference no: EM131993794

Questions Cloud

State what factors need to be considered when tendering : State what factors need to be considered when tendering an estimate for a contract.
What is the stocks expected return : What is the stock's expected return? Round your answer to 2 decimal places. Do not round intermediate calculations.
What distance did the elevator travel : a) What distance did the elevator travel? b) What was its total displacement? c) What is the average speed?
Calculate the wacc including all four classes of liabilities : There are four sets of liability holders on the balancesheet. Calculate the WACC including all four classes of liabilities.
The present value of this stream of cash flows : The first $56, 000 payment is made immediately, and the 24 remaining $56, 000 payments occur at the end of each of next 24 years.
What is the wavelength of a sound wave with a frequency : (a) What is the wavelength of a sound wave with a frequency of 196 Hz, corresponding to the note G3 on a piano?
Anticipate barriers and problems of implementation : HCS 497 Health Education Capstone -Determine methods to achieve these goals and objectives How will the target audience obtain the information
Calculate the present value of the cash? flows : The first ?$75,000 payment is made? immediately, and the 19 remaining ?$75,000 payments occur at the end of each of the next 19 years.
What is the mass of the object : What is the direction of the acceleration and what is the mass of the object?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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