What is expected present value of Cynthia Bennett cash flow

Assignment Help Accounting Basics
Reference no: EM132871828

Question - A cash flow of $500,000 may be received by Cynthia Bennett Company in one year, two years, or three years, with probabilities of 30%, 60%, and 20%, respectively. The rate of interest on default risk-free investments is 8%.

Required - What is the expected present value of Cynthia Bennett' cash flow? Round your answers to the nearest whole dollar. Be sure to use the time value of money tables using 5 decimal places, not the formula and round your answers to the nearest whole dollar.

Reference no: EM132871828

Questions Cloud

Identify and discuss the concept of patrol : Identify and discuss the concept of patrol (Where did it come from, what is patrol and its specific purpose when it first began, what does it do
Determine the inventory lost by fire : Purchase Returns and Allowances $2.400; and Purchase Discounts $1,300. Determine the inventory lost by fire
Discuss the causes of armed conflicts : Discuss the causes of armed conflicts, as well as how the nature of warfare has changed. When writing your answer make sure to refer to at least three armed
Find number of theoretical plates required in rectifying : Demonstrate that the reflux ratio is 1.72, and find the number of theoretical plates required in the rectifying section only. Explain your workings briefly
What is expected present value of Cynthia Bennett cash flow : The rate of interest on default risk-free investments is 8%. What is the expected present value of Cynthia Bennett' cash flow
What role do you anticipate the internet playing in terror : What role do you anticipate the internet playing in terror campaigns going forward? What anti-terror policies were used in the readings?
What are the four features of the pendleton act : What are the four features of the Pendleton Act? What are the seven criteria used in selection? What is implied by the patronage criterion?
Choose two international issues : Choose two international issues and discuss ways you would address them if you were a world leader. Reference your sources (make sure it is clear)
Explain the politics-administration dichotomy : What skills are noted that differentiate women managers from men? Would you agree with these observations from your own experience?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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