What if the appropriate discount rate is ten percent

Reference no: EM132049766

Question: (Present value of a growing? perpetuity) What is the present value of a perpetual stream of cash flows that pays $2,500 at the end of year one and the annual cash flows grow at a rate of 3?% per year? indefinitely, if the appropriate discount rate is 12?%? What if the appropriate discount rate is 10?%?

Reference no: EM132049766

Questions Cloud

Prepare a well-researched project planning document : The major group project assignment should include various phases of a project life cycle, such as initiating, planning, executing and closing a project.

Relationship between job costing and activity based costing : What is the common relationship between job costing, activity based costing, master budget, and responsibility

What is the discount rate associated with the stock : When presented with an investment opportunity, Jospeh knows that calculating the interest rate associated with that investment is really imprtant.

What concentration is there of the naoh : If a titration of 0.5533 g of KHP needs 25.84 ml of an NaOH solution to reach the equivalence point, then what concentration is there of the NaOH?

What if the appropriate discount rate is ten percent : (Present value of a growing? perpetuity) What is the present value of a perpetual stream of cash flows that pays $2,500 at the end of year one and the annual.

What is the molar solubility of m : The Ksp of some metal hydroxide, M(OH)3, is 2x10-31 at 25oC. What is the molar solubility of M(OH)3(s) in a solution that is buffered at pH 4.47 at 25oC?

What will be the ph of the new solution : If 22.0 mL of 0.182 M NaOH solution is added to 100. mL of solution which is 0.100 M in HA (Ka = 5.00x10-5) and 0.100 M in NaA, what will be the pH of the new

Find the minimum amount of wages that garro must receive : Under the Fair Labor Standards Act, the minimum amount of wages that Garro must receive for a 40-hour workweek is

Compare the calculated present values : Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling ? $75,000 in each case.

User Account

All Pages