Total of ten consecutive cash flows

Assignment Help Financial Management
Reference no: EM13987939

Suppose you deposit $529 five years from today and each year thereafter deposit $529 for a total of ten consecutive cash flows (CF's); i.e. ten consecutive annual CF's beginning five years (t = 5) from today. Calculate the present value today (t = 0) of these CF's if the rate of interest is 4.6-percent compounded annually.

Please show how to solve problem..

Reference no: EM13987939

Questions Cloud

Designing an application utilizing event-driven programming : Designing an application utilizing event-driven programming - the Model-View-Controller design pattern - You can review the code of the program "Puzzler" seen in lab 4 to help you with the class DotButton.
What is the value of the lump sum : What is the lump sum deposited today at 8% compounded qrtly for 10 years, will yeild the same amount if $4000 deposit with 6% interest end of 6 months compound simi annual, 10 years. What is the value of the lump sum?
Finding the changing interest rates over time : Give two alternatives. Be sure you explain how the alternatives work so that even a government regulator could understand it. As part of your answer be sure to discuss the two risks that bond holders are exposed to because of changing interest rat..
What is the one-year treasury security rate : Suppose we observe the three-year Treasury security rate (1R3) to be 5.3 percent, the expected one-year rate next year—E(2r1)—to be 5.8 percent, and the expected one-year rate the following year—E(3r1)—to be 6.2 percent. If the unbiased expectations ..
Total of ten consecutive cash flows : Suppose you deposit $529 five years from today and each year thereafter deposit $529 for a total of ten consecutive cash flows (CF's); i.e. ten consecutive annual CF's beginning five years (t = 5) from today. Calculate the present value today (t = 0)..
Effect of preferred stock dividends : What guidance does the SEC provide for public companies with respect to the reporting of the "effect of preferred stock dividends and accretion of carrying amount of preferred stock on earning per share?
Estimate the sream flow rate and compositions : For a production rate of 1250kg/h M.E.K- draw a flowsheet for the process and estimate the sream flow rate and compositions.
Acting is considered as a good profession : in your opinion, is acting considered a "good" profession (regardless of the gender) or does it still have a taint of immorality attached to it?
What is the cost of goods sold for the period : A company had beginning inventories as follows: Direct Materials, $900; Work-in-Process, $1,100; Finished Goods, $1,900. It had ending inventories as follows: Direct Materials, $1,000; Work-in-Process, $1,200; Finished Goods, $2,000. Material Purchas..

Reviews

Write a Review

Financial Management Questions & Answers

  Draw a cash flow diagram and at an interest rate

Cummins crane corporation is considering replacing its controllers on its heavy lift cranes with new portable infrared controllers. 3C expects to achieve cost savings of 15k the second year, increasing by $1500 each year thereafter for the next 4 yea..

  Calculate benchmarks return on equity

Calculate Benchmarks return on equity for 2007 as reported. Calculate what Benchmark's return on equity would have been in 2007 if the company had issued the additional debt and had repurchased ordinary shares before the year began.

  Calculate variances and standard deviations

The rate of return on Cherry Jalopies, Inc., stock over the last five years was 23 percent, 11 percent, -5 percent, 7 percent, and 10 percent. Over the same period, the return on Straw Construction Company’s stock was 16 percent, 24 percent, -6 perce..

  Company manpower group incticker symbol man united

company manpower group incticker symbol man united statesmake an assessment of where your company stands right now what

  Yield to maturity of bond

Consider a 20 year, $1000 bond with a coupon rate of 9% and quarterly coupons. By looking at Bloomberg you can see that this bond has most recently traded at a price of $1462.62. Give two numbers (a,b) such that the yield to maturity of bond is betwe..

  What is the increase in the value of the equity

A firm has access to two mutually exclusive investment projects. Both the projects require an initial investment of $15,000. If project 1 is undertaken, with probability 1/2, it pays off $20,000 or $34,000. What are the expected payoffs to the bank a..

  Describes the optimal level of investment

With respect to investment within the firm, which of the following describes the optimal level of investment?

  Distinguish between a traceable cost and a common cost

Distinguish between a traceable cost and a common cost. Give several examples of each.

  How did the credit crunch become a global financial crisis

Briefly discuss the various types of international banking offices and how did the credit crunch become a global financial crisis?

  Pay the accumulated interest at end of each interest period

Upon graduation, Steven purchases a new home theatre system for his apartment.To finance the system, he borrows $5,000 from a new credit card at 21% per year compounded monthly. He fully intends to pay off the loan in 1 year while making monthly paym..

  What are the key features of a bond

What are the key features of a bond? How do you determine the value of a bond? What is the value of a similar 10-year bond? What would be the value of the bond described in part?

  What are capital expenditures

What are capital expenditures, and how can they help a company achieve its long-term objectives?

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