What is present value of the technology

Assignment Help Financial Management
Reference no: EM131952953

Can you please show me the formula for this problem their are other similar problems but when i did the same problem the different ways i got different answers so i don't know which of my answers is wrong. Can you please break down the formula and show me how it is to be done.

Your firm has been working on an advanced technology. This technology will be available in the near term. The firm anticipates the first annual cash flow from the technology to be $190275, received three years from today. Subsequent annual cash flows will grow at 3.46% in perpetuity.

What is the present value of the technology if the discount rate is 11.13%?

Reference no: EM131952953

Questions Cloud

The total time-weighted rate of return for calendar quarter : The total time-weighted rate of return for the calendar quarter is ______ % and the holding period return for the calendar quarter is _____%
Calculate the net cash flows : Managers at Acme Doohickey Co. are considering two projects. But the table is incomplete; you will need to calculate the Net Cash Flows.
In limited partnership : Which type of business is the easiest to form? In a limited partnership:
Holds true for writer of bond call option : Which of the following holds true for the writer of a bond call option if interest rates decrease?
What is present value of the technology : What is the present value of the technology if the discount rate is 11.13%?
Prepare cash budget for february indicating the surplus : Prepare a cash budget for February indicating the surplus (deficit) of cash as of February 28. The cash balance as of January 31 is $22,000.
Plan on retiring : Jack and Jill are 41 years old and plan on retiring at age 65 and expect to live until age 95.
What is the value of the perpetuity in four years : A perpetuity of $1500 quarterly payments begins six years from now. What is the value of the perpetuity in 4 years?
What is the purpose of credit forward agreement : The Securities Act of 1933 focuses on. What is the purpose of a credit forward agreement?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the npv of project

A new IT server for a company will cost $449,367.00 today. What is the NPV of this project?

  Estimate the cash balance at the end of the third year

Assume that RYBR had financed 20% of its reinvestment needs with debt, estimate the cash balance at the end of the third year.

  What do investors expect stock to sell for at end of year

A share of stock is now selling for $155. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 5% and the expected rate of re..

  What should be the price of preferred b stock

If comparable yields are 9 percent, what should be the price of preferred B stock?

  Acquiring corporation should be in the driver seat

It seems the acquiring corporation should be in the "driver’s seat" in a typical merger. Why don’t their shareholders benefit?

  What is the price of call option on widget shares

The current spot price of a Widget share is $48. One year from now the stock price can be either high ($50 per share) or low ($46 per share). The annual risk-free interest rate is 10%. What is the price of a call option on 100 Widget shares, with an ..

  Describe the maximisation of shareholder wealth concept

Describe the ‘maximisation of shareholder wealth’ concept and contrast it with the notion of ‘maximisation of profit’.

  Problem regarding the lottery payments

A major lottery advertises that it pays the winner $10 million. However this prize money is paid at the rate of $500,000 each year (with the first payment being immediate) for a total of 20 payments. What is the present value of this prize at 10% ..

  Some of the common misconceptions about cash flow

What are some things that the statement of cash flows does not show? And what are some of the common misconceptions about cash flow?

  How much can he borrow and still be able to afford payment

how much can he borrow and still be able to afford the payment?

  The percentage of total assets financed by your creditors

You run a company and need to know the percentage of total assets financed by your creditors. How is this ratio named and what ratio category is it part of?

  First withdrawal is at the end of your first retirement year

For simplicity, assume that your first withdrawal is at the end of your first retirement year (yr 41).

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