What is present value of net cash flows from a+ operations

Assignment Help Finance Basics
Reference no: EM13302469

A+ Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $155,000. A+ is an ongoing operation, but it expects competitive pressures to erode its real net cash flows at 5% per year in perpetuity. The appropriate real discount rate for Phillips is 11%. All net cash flows are received at year-end. What is the present value of the net cash flows from A+ operations?

Reference no: EM13302469

Questions Cloud

Compute magnitude of the velocity and acceleration vectors : A Ferris wheel with a radius of 35 feet starts from rest and undergoes an angular acceleration of 0.05 rad/s^2. Compute the magnitude of the velocity and acceleration vectors at 5 seconds for a point on the rim of the Ferris wheel.
Statistical measure would be useful to calculate explain : Why are the means for bostonians and the dinkas similar but the graphs so different? what are the other statistical measure would be useful to calculate? explain
What is the temperature of the helium : A research balloon bound for the stratosphere is filled at sea level with 800 m3 of helium whose initial temperature is 285 K. What is the temperature of the helium
Which copier should the company choose : The inflation rate is expected to be 5% per year and the nominal discount rate is 14%. Which copier should the company choose?
What is present value of net cash flows from a+ operations : The appropriate real discount rate for Phillips is 11%. All net cash flows are received at year-end. What is the present value of the net cash flows from A+ operations?
Determine the amount of moisture removed from the air : Moist air at standard conditions is at a dry bulb temperature of 80 degree F and a relative humidity of 50%. It is cooled to 50 degree F. Use the psychromtric chart to determine: a- The energy removed from the air after it is cooled in BTU/lb of d..
Molecule of dna to a protein : Describe the steps involved in going from a molecule of DNA to a protein.
Determine the pressure drop across the aorta of the dog : If the cardiac output of a small dog is 4.05 x 10-3 m3/s, the radius of its aorta is 0.516 cm, determine the pressure drop across the aorta of the dog
What is the wavelength of the em waves emitted by the wiring : The currents in household wiring and power lines alternate at a frequency of 60.0 Hz. What is the wavelength of the EM waves emitted by the wiring

Reviews

Write a Review

Finance Basics Questions & Answers

  Should ccc take the discount

The supplier is now offering a quantity discount of $0.03 per gallon if CCC orders 10,000 gallons at a time. Should CCC take the discount?

  Three techniques for solving time value problems

Explain how each of the 4 fundamental factors which affect the supply & demand for investment capital,m and hence, interest rates, Explain the 3 techniques for solving time value problems.

  Determine operating cash flow

A project has a contribution margin of $5, projected fixed costs of $13,000, projected variable cost per unit of $12, Determine operating cash flow for the project.

  What will bob earnings per share be

If Bob's sales next year increase by 20%, what will Bob's earnings per share be?

  Compute the value of a share

Von Bora Company is expected to pay a $3.00 dividend at the end of this year. If you expect Von Bora Company's dividend to grow by 6 percent per year forever and VBC's equity cost of capital is 12%,

  Replacement cost of the similar house

Replacement cost of the similar house, with similar materials also quality is= $240,000. House is totally destroyed in the tornado.

  Calculate daily expenditure and firm annual savings

XieCorp is analyzing the performance of its cash management. On average, the company holds inventory 65 days, pays its suppliers in 35 days, and collects its receivables in fifteen days.

  How many shares will be outstanding after the dividend

Assume the company issues a 10 percent stock dividend. How many shares will be outstanding after the dividend?

  What is the equipment after-tax salvage value

Kennedy can sell the used equipment today for $5.25 million, and its tax rate is 30%. What is the equipment's after-tax salvage value? Round your answer to the nearest cent.

  Which type of risk declines

Beginning with an investment in one company's securities, as we add securities of other companies to our portfolio, which type of risk declines?

  Bond refunding analysis for mullet technologies

Perform a complete bond refunding analysis. What is the bond refunding's NPV? What factors would influence Mullet's decision to refund now rather than later?

  What percentage of the firm capital funding should be debt

The Color Box uses a combination of common stock, preferred stock, and debt financing. The company wants preferred stock to represent 8 percent of the total financing.

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