User Account

All Pages

What is the estimated value of the store

Assignment Help Basic Statistics
Reference no: EM132027287

You are considering investing in an auto parts store. The store has a 10 year lease, which implies that it will remain in business for the next 10 years. It produced annual cashflows of $400,000 (after all expenses were deducted). The discount rate to value businesses with similar risk levels is 10%. You estimate that, over the long-term, cash flows will grow at 5% per year because of inflation expectations. Based on this information, what is the estimated value of the store?

Reference no: EM132027287

Questions Cloud

How do you calculate the prepayment penalty : If there is a 2.5% prepayment penalty for repaying the loan in the first 5 years, what is the expected borrowing cost?
Compute the relative risk of the two firms : Integrativ; Leverage and Risk Firm R has sales of 100,000 units at $2.00 per unit, variable operating cost of $1.70 per unit, and fixed operating cost of $6,000
What is the net present value of investment opportunity : If similar investment opportunities are expected to pay an annual rate of return of 5%, what is the net present value (NPV) of this investment opportunity?
What is the cost of common equity : Palencia Paints Corporation has a target capital structure of 40% debt and 60% common equity, with no preferred stock. Its before-tax cost of debt is 9%.
What is the estimated value of the store : You estimate that, over the long-term, cash flows will grow at 5% per year because of inflation expectations. Based on this information
Calculate the irr for the given project : Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy's paid $129,000 for a marketing survey to determine.
Discuss about the compensation income : Paola exercised an incentive stock option on March 1, 2016. She acquired 2,000 shares of stock at an exercise price of $3 per share when the fair market value.
What is the real interest rate you expect to earn : What is the real interest rate you expect to earn on your deposit over the next year?
Calculate the operating breakeven point in units : Degree of operating leverage Grey Products has fixed operating costs of $380,000, variable operating costs of $16 per unit, and a selling price of $63.50.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd