Total investment at expected time of the final test flight

Assignment Help Financial Management
Reference no: EM131817634

A solar-powered personal aircraft with VTOL capability has been under development for the past 30 years by a group of

engineers and physicist. SPPAV, as the plan e will be termed, is expected to be available for its final test flight in exactly 3 years from now. Over the previous 30 years, a total of $100 million has been spent in its development. Assuming has the $100 million was spent in an equal amount each year, and assuming an interest rate of 10%, determine the following:

a) The value of the total investment now, after 30 years.

b) The value of the total investment at the expected time of the final test flight in three more years, assuming the same amount is spent for each of the next three years.

c) The value of the total investment at the expected time of the final test flight in three more years, assuming that twice the amount is spent for each of the nect 3 years than that for the previous 30 years.

Reference no: EM131817634

Questions Cloud

Anyone not directly concerned with the patient care : Written permission shall be obtained before medical records are made available to anyone not directly concerned with the patient's care.
Concepts to consider to make sound financial decisions : Assuming everything else equal, one of the concepts to consider to make sound financial decisions is that _____."Double taxation" refers to:
Prepare the entry to record depreciation : Is it necessary to do an entry to correct the prior years' depreciation? Prepare the entry to record depreciation for 2013
Describing how a company you work for or know in uae tries : Describing how a company you work for or know in the UAE tries to ensure that its employees and stakeholders behave ethically
Total investment at expected time of the final test flight : The value of the total investment at the expected time of the final test flight in three more years, assuming same amount is spent for each of next three years
2004 a bad year for the grizzly bear : "2004 a Bad Year for the Grizzly Bear" reported that "31 bears were killed illegally or had to be destroyed in a mountain habitat
How much net reportable income must dylan recognize : Dylan is a material participant in the partnership. How much net reportable income must Dylan recognize for the current year
Proportion of all students who would choose that color : A survey was completed by 446 students at a large university in the fall of 2003. Students were asked to pick their favorite color
What proportion of students would choose each number : In a survey of 446 students, respondents were asked to pick a whole number at random, anywhere from 1 to 20.

Reviews

Write a Review

Financial Management Questions & Answers

  When using control chart-process is out of control

When using a control chart, what are some patterns that would indicate that the process is out of control? Additionally explain what might cause a process to be out of control. In your responses to other students, relate and identify to an example of..

  Equivalents will have what effect on operating cash flow

All else constant, an increase in cash and equivalents will have what effect on operating cash flow?

  What are your disbursement-collection and net floats

You have $36,400 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $6,300 and then deposit a check for $4,700. What are your disbursement, collection, and net floats?

  What would be the maximum to spend on the revision

At Tech Corp., Rob Hendricks is studying the vector valve department and finds that a new tool could be designed that would save $2,600 in material and $5,000 in labor per year. The current process will be used for five more years. What if Rob did no..

  Which annuities ordinary or due are preferable and why

Which annuities Ordinary or Due are preferable and why?

  Calculate the return of sales

Assume you are given the following information for Flanders Company: Return on Assets (ROA): 11% Return on Equity (ROE): 20% Total Asset Turnover : 1.5x Calculate the Return of Sales for Flanders Company. a. 7.33% b. 13.33% c. 1.81% d. 8.5% e. 16.5%

  Fixed costs for rehabilitation center

Assuming that your fixed costs for a Rehabilitation Center are $125,000 per year. Your average variable expenses come to $25 per procedure.

  Execute these strategies in their marketing mixes

Select three companies competing in the same product or service category. How does each differentiate and position itself and how do they execute these strategies in their marketing mixes? Which competitor is most successful? Which element(s) of the ..

  What happens to the outstanding shares of the target firm

What happens to the outstanding shares of the target firm when the acquirer purchases 100% of the target’s outstanding stock?

  Determine the net present value of the investment

Determine the net present value of the investment in the machine using the model shown in class.

  Purchasing home-what is the amount due at closing

Isabella is purchasing a home for $150,000. What is the amount due at closing?

  What is the firm market value leverage ratio

The firm's bonds are currently selling for $ 947 and the firm's stock is currently selling for $47. What is the firm's market value leverage ratio?

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