What is present value of these cash flows

Assignment Help Financial Management

Reference no: EM131336154

Investment X offers to pay you $5,100 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years. If the discount rate is 6 percent, what is the present value of these cash flows?

Investment X ( Present Value)

Investment Y (Present Value)

If the discount rate is 16 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Investment X ( Present Value)

Investment Y (Present Value)

Note: Please share instruction to resolve it through TI BA Plus Calculator

Reference no: EM131336154

Questions Cloud

Sketch the payout function for the trigger call : A trigger call option lets the holder buy a stock at a aprice K, but only if the stock price is above H at the time of expiry (H greater than K) Sketch the payout function for the trigger call. Develop an analytic formula for the price of this option..

Calculate the minimum transfer balance required : The cash manager of Verematic, Inc., is contemplating the choice between using a wire transfer and an EDT. He estimates that his investment opportunity rate is 9%. The bank's ECR is currently 4%, and the reserve requirement is 12%. Calculate the mini..

Private placements occur most frequently with stocks : Private placements occur most frequently with stocks, but bonds can also be sold in a private placement. b. Private placements are convenient for issuers, but the convenience is offset by higher flotation costs.

Statements about listing on a stock exchange : Which of the following statements about listing on a stock exchange is most CORRECT? a. Any firm can be listed on the NYSE as long as it pays the listing fee. b. Listing provides a company with some "free" advertising, and it may enhance the firm's p..

What is present value of these cash flows : Investment X offers to pay you $5,100 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years. If the discount rate is 6 percent, what is the present value of these cash flows?

How many yen could one dollar buy tomorrow : Suppose one U.S. dollar can purchase 144 yen today in the foreign exchange market. If the yen depreciates by 8.0% tomorrow, how many yen could one U.S. dollar buy tomorrow? a. 155.5 yen b. 144.0 yen c. 133.5 yen d. 78.0 yen e. 72.0 yen.

What is the risk premium on the market : Perform the following in Excel, the Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. On the basis of the capital asset pricing model: What is the risk premium on the market? What is the required return on an investmen..

Required return on equity increases as dividend payout ratio : Myron Gordon and John Lintner believe that the required return on equity increases as the dividend payout ratio is decreased. Their argument is based on the assumption that investors require that the dividend yield and capital gains yield equal a con..

The yield on the company outstanding bonds : Assume you are on the financial staff of BL Companies. and you have collected the following data: The yield on the company’s outstanding bonds is 5.0%, and its tax rate is 40%. The target capital structure is 60% debt and 40% equity. What is BL Compa..

User Account

All Pages