What is present value of this cash flow pattern

Assignment Help Financial Management
Reference no: EM131843967

You have been offered the opportunity to invest in a project that will pay $1,071 per year at the end of years one through three and $14,418 per year at the end of years four and five. If the appropriate discount rate is 15.5 percent per year, what is the present value of this cash flow pattern?

Round the answer to two decimal places.

Reference no: EM131843967

Questions Cloud

What is the implied value of the firm growth opportunities : If earnings are $4.20 a share, what is the implied value of the firm's growth opportunities?
From a fund of funds perspective : Today is T=1. From a fund of funds perspective, you are trying to evaluate Portfolio Managers A-E for style drift over the past year
Consider standard mortgage with monthly payments : Consider a standard mortgage (360 months) with monthly payments and a nominal rate (monthly compounding) of 5.00%.
How much leverage does the bofa have : How much leverage does the BOFA have, and how does it compare to its peers?
What is present value of this cash flow pattern : what is the present value of this cash flow pattern?
Find the modified internal rate of return : Find the modified internal rate of return (MIRR) for the following series of future cash flows if company is able to reinvest cash flows received from project
Find the internal rate of return : Find the internal rate of return (IRR) for the following series of future cash flows. The initial outlay is $504,600.
What price should the stock sell at if the discount rate : What price should the stock sell at if the discount rate is 15%? What price should stock sell at if the discount rate is 12%?
Customer is delinquent on his accounts payable balance : One of you customer is delinquent on his accounts payable balance. how long will it take for the account to be paid off?

Reviews

Write a Review

Financial Management Questions & Answers

  Show calculations relating to depreciation and gains tax

Your business just bought a brand new boat, in year zero, to help with underwater lumber recover. The boat, a ten-year asset, cost $1,500,000. The boat requires less crew and is more fuel efficient reducing fuel and operating costs from $3.5M per yea..

  Determine the value of the firm and the firm wacc

Assume that a firm has no debt in its capital structure. Determine the value of the firm. Determine the value of the firm and the firm’s WACC.

  What is the most you should pay for the annuity

You have a chance to buy an annuity that pays $5,000 at the beginning of each year for 5 years. You could earn 4.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

  Calculate the ?after-tax cost of the sony bond

Calculate the ?after-tax cost of the Sony bond given the corporate tax rate.

  Hat was the cash flow to stockholders for the year

The December 31, 2015, balance sheet of Schism, Inc., showed $141,000 in the common stock account. What was the cash flow to stockholders for the year?

  What is the default risk premium on the corporate bond

what is the default risk premium on the corporate bond?

  Respect to interest rates after purchasing the bond

What would the investor want to happen with respect to interest rates after purchasing the bond: for interest rates to increase, decrease, or remain unchanged?

  Generally prefer dividends or share repurchases

Do investors generally prefer dividends or share repurchases? Support your answer. What are some considerations a company should take into account when establishing dividend policy?

  Making capital budgeting decisions-add to shareholder value

A company is considering two mutually exclusive expansion plans. Plan A requires a $41 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.55 million per year for 20 years. Calculate the crossover rate w..

  What is the company total book value of debt

What is the company's total market value of debt? What is your best estimate of the aftertax cost of debt? What is the company's total book value of debt?

  What was the real rate of return over the past year

What was the real rate of return over the past year (from one year ago to today) for a stock if the inflation rate over the past year was 2.88 percent, the risk-free return over the past year was 4.54 percent, the stock is currently priced at 58.66 d..

  How might world economies affect exchanges

Discuss the ways in which exchanges have transitioned from this image, and why. How might world economies affect exchanges?

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