What is present value of investment a at an annual discount

Assignment Help Financial Accounting
Reference no: EM132718547

You are given three investment alternatives to analyze. The cash flows from these three investments are as? follows:

?(Present value of an uneven stream of payments?)

Investment            A                        B                       C

1                     $2,000             $3,000         $5,000

2                    3,000                 3,000             5,000

3                  4,000                   3,000               (5,000)

4                  (5,000)               3,000                (5,000)

5                  5,000                 5,000                    15,000

Problem 1: What is the present value of each of these three investments if the appropriate discount rate is 12 ?percent?

Problem 2: What is the present value of investment A at an annual discount rate of 12 ?percent?

Reference no: EM132718547

Questions Cloud

Activated ignorance and activated knowledge : What is the difference between activated ignorance and activated knowledge?
What is the price of Bond A : The yield to maturity on bond A is 10%, and the price of bond B is $84.18. Assuming annual compounding, what is the price of Bond A
What the plant should be carried in malaluan statement : The recoverable amount at that date is P315,000, the plant should be carried in Malaluan's statement of financial position at December 31, 2022 at?
Identify an opportunity to for improved health behavior : Using resources such as the CDC, state and county health department websites, and various local resources, identify an opportunity for improved health behavior.
What is present value of investment a at an annual discount : You are given three investment alternatives to analyze. What is the present value of investment A at an annual discount rate of 12 ?percent?
Determine the measurement sensitivity : An instrument is calibrated in an environment at a temperature of 20°C. Determine the measurement sensitivity, expressed as the ratio y/x
Locate a journal article about job-costing systems : Locate a journal article about job-costing systems or how managerial accounting helps businesses make decisions - include the name of the article
What will be IJ marginal cost of retained earnings : What will be IJ's marginal cost of retained earnings? IJ Company established a target capital structure of 40% debt, 60% common equity.
Identify risk factor and diseases associated with overweight : My client is an African woman who is obese. Because of her culture, she is not really a believer in exercise and it is hard for her to exercise and lose weight.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find which statement in relation to refinancing of liability

Find Which statements in relation to refinancing or rescheduling of liability is true? A liability which is due to be settled w/n 12 mos.

  Evaluate the unit product cost

Evaluate the unit product cost from the given data - evaluate the unit product cost.

  What is the amount of cash required for the payment

Enduro Tile Company purchased merchandise on account from a supplier for $8,000, terms 2/10, n/30. Enduro Tile Company returned $3,500 of the merchandise and received full credit.

  Prepare a statement of cash flows for the year

The following changes took place last year in Pavolik Company’s balance sheet accounts: Using the indirect method, determine the net cash provided by / used in operating activities for the year. (List any deduction in cash and cash outflows as negati..

  Describe circumstances of different types of assets

Describe the circumstances under which these different types of assets become impaired. Support your responses with a reference from the ASC

  Product costs are

Product costs are?

  Analyse audited and forecast income statements

Critically analyse audited and forecast income statements of Brand Ltd and discuss any issues arising from your analysis - Discuss the general shortcomings of earnings based valuations

  Journalize the treasury stock transactions for carlos corp

On May 1, the corporation sells 500 shares of treasury stock for cash at $40 per share. Journalize the treasury stock transactions

  Which alternative should smokey choose assuming

Smokey Sims is 60 years old and has been asked to accept early retirement from his company. Which alternative should Smokey choose assuming that he is able to invest funds at a 6% rate?

  Prepare the adjusting entry for uncollectible accounts

Tallahassee Seminole Shop uses the percentage of receivables method of accounting for uncollectible accounts. Estimate the uncollectible accounts as of the end of 20-9. Prepare the adjusting entry for uncollectible accounts.

  Determine the value of the inventory at the lower of cost

How should this be assembled. EX 7-11 Lower-of-cost-or-market inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 7. Commodity Invento..

  Calculate company price-earnings ratio

The year-end market price per common share was $12 and there were 425,000 weighted-average shares of common stock outstanding. Calculate company's price-earnings 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