What is stream of cash flows worth today

Assignment Help Financial Management

Reference no: EM131821472

1. Suppose that for each of the next 10 years you will receive $350. If the opportunity cost of capital is 8% how much is this stream of cash flows worth today?

2. Suppose that you deposit $400 in the bank at the end of each of the next 10 years. If the APR is 4% how much will be in your account at the end of 10 years?

3. Suppose that starting one year from now you will receive $160 a year at the end of every year. If the discount rate is 9% what is this stream of cash flows worth today?

4. Suppose that you will receive $650 at the end of every year starting 5 years from now (i.e. first payment EOY 5). What is this stream of cash flows worth if the cost of capital is 10%?

Reference no: EM131821472

Questions Cloud

Cash flow amount to use initial investment in fixed assets : What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Duration of two-year bond that pays annual coupon : What is the duration of a two-year bond that pays an annual coupon of 10.9 percent and has a current yield to maturity of 13.5 percent?

What is the duration of four-year treasury bond : What is the duration of a four-year Treasury bond with a 6.5 percent semiannual coupon selling at par?

Asset turnover ratio is lower than the industry average : Allied Foods’ total asset turnover ratio is lower than the industry average. What are the causes of this substandard performance, do you think?

What is stream of cash flows worth today : Suppose that starting one year from now you will receive $160 year at end of every year. If the discount rate is 9% what is stream of cash flows worth today?

How much will she have to invest today : If the bank CD she wants to invest in will pay 5.2 percent annually, how much will she have to invest today?

What is the firm return on equity : Andrade Corp has debt of $2,835,000, total assets of $5,178,000, sales of $8,234,100, and net income of $812,300. What is the firm’s return on equity (ROE)?

What is the firm debt-equity ratio : Columbus Security Corp. has a ROE of 28 percent, profit margin of 6.6 percent, and total asset turnover of 1.3. What is the firm's debt-equity ratio?

Weighted average cost of capital of this two asset portfolio : What is the weighted average cost of capital of this two asset portfolio?

User Account

All Pages