What is the fair price of given invesment

Assignment Help Financial Management
Reference no: EM131245919

An investment pays $500 per year for the first 4 years, $400 per year for the next 3 years, and $700 per year the following 8 years (all payments are at the end of the year).

If the discount rate if 10% compounding quarterly, what is the fair price of this invesment?

Reference no: EM131245919

Questions Cloud

How you would use it to facilitate your collaborations : What communication models (A common language for team communication see page 22 i.e. SBAR or other models from week 8 content) do you presently use when communicating with other healthcare providers in your area of practice. a. with other nurses a..
What inventory level should lott place another order : Calculate the EOQ. -  What is the difference in inventory costs between the EOQ and the current order quantity of 10,000 units?
Implement the fdtd method in a matlab program : ECE 452 - Derive the stability condition for each of the above time discretization methods and Derive the FD equations for nodes on the left, right, top and bottom boundaries.
What role if any government should play : In explaining your position, be sure to include cited research that supports your consideration, recommendations for safeguards going forward, and what role, if any, government should play.
What is the fair price of given invesment : An investment pays $500 per year for the first 4 years, $400 per year for the next 3 years, and $700 per year the following 8 years. - If the discount rate if 10% compounding quarterly, what is the fair price of this invesment?
Describe methods of estimating costs : Consider a project in which you have been involved that used an estimating technique to provide numbers for the conceptual plan.
What would be the expected risk on mr jones portfolio : If standard deviation of Stock A is 12.65%, Stock B is 21.55%, and correlation between Stock A and Stock B is 0.5, what would be the expected risk on Mr. Jones' portfolio?
Evaluate npv of investment under the best-case assumptions : Evaluate the NPV of the investment under the best-case assumptions.  Explain how sensitivity and scenario analysis are useful for evaluating project risk? How can break-even analysis be helpful in evaluating project risk?
Describe how the value of the contractor''s efforts : Consider a project you are familiar with in which the contractor or service provider who was performing the work needed to be replaced before the job was completed. Describe how the value of the contractor's efforts up to that point was determined..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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