What is the future value at discount rate

Assignment Help Financial Management
Reference no: EM131183104

Cannonier, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,090 2 1,320 3 1,540 4 2,280 If the discount rate is 7 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ What is the future value at a discount rate of 13 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ What is the future value at a discount rate of 22 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $

Reference no: EM131183104

Questions Cloud

Cost of either acquiring or leasing office space : Delen is considering opening an office in a new market that would allow it to increase it annual sales by $ 2.5 million. Cost of sales is estimated to be 40% of the sales and corporate overheads would increase by $300000, not including the cost of ei..
Suppose the density of ethene gas : Suppose the density of ethene gas is 0.0155 g/cm3, how many grams of ethene are needed under these conditions?
What is the required rate of return on the lathe : Ricks firm has a beta of 1.3, when risk free rate is 7% and market return is 12%. the firm now sells 10 percent of its assets (beta = 1.2) and uses the proceeds to purchase another asset, a lathe machine, with a beta of .8 What is the required rate o..
Calculate the total economic capital : All other correlations are zero. Calculate the total economic capital. - How much should be allocated to each business unit?
What is the future value at discount rate : Cannonier, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,090 2 1,320 3 1,540 4 2,280 If the discount rate is 7 percent, what is the future value of these cash flows in Year 4? What is the future value ..
How expensive and complex is the technology : Describe and summarize your selected detection, inspection, or surveillance technology that could be used to increase law enforcement agency capabilities.
Calculate river city payroll departments cost per check : Calculate River City payroll department's cost per check. Based on costs would it be cheaper to maintain the payroll department or contract out for the payroll services?
Rentable square foot project with average rents : A company is considering of land that could be developed into a class A office project. At the present time, the company believes that the site could support a 300,000 rentable square foot project with average rents of $ 20 per square foot and operat..
Draw a state transition table and derive the input equations : Design the counter as a Moore machine where the state bits serve as the count outputs. Draw a state transition table and derive the input equations for implementing the counter using D flip-flops and logic gates.

Reviews

Write a Review

Financial Management Questions & Answers

  Invest them in shortterm safe financial instruments

Money market mutual funds take in your dollars (like deposits) and invest them in shortterm “safe” financial instruments to earn you interest. Now assume there is a rule stating that MMMF’s could cash people out at $1 if (for instance) the value of t..

  Using CAPM compute the cost of equity financing

ABC is a manufacturer. Long term debt, with an incremental borrowing rate of 6% Capital stock with the following information. Risk free rate 4%, market rate of return 12%, Beta 1.25. Compute the weighted average cost of capital (WACC)? Using CAPM com..

  Make transactions now or at the end of production

The quantity of copper produced could be 10,000, 40,000 or 15,000 pounds with equal likelihood. The cash price could be $3, $6, or $11 per pound with equal likelihood. You could sell all or part of the forward now at $7 making up any shortfall in the..

  1 identify the key criteria and considerations that need to

1. identify the key criteria and considerations that need to be taken into account in evaluating bfsi entry in the

  Which project does a risk averse manager prefer

Project A generates $5,000.00 in revenue two years from today and costs $4,000.00. Project B generates $4,000.00 (50% probability) or $6,000.00 (50% probability) one year from today and costs $4,500.00. Assuming a discount rate of 12% for both projec..

  Calculate the number of shares in issue if the company

Calculate the number of shares in issue if the company where to pay the dividend and Calculate the number of shares in issue if the company where to repurchase its shares.

  What was the price of the option

With the price of the stock at $60 per share, a put option is purchased with an exercise price of $58 per share. The option is exercised after the stock is purchased at $52 per share and results in a gain of 50 percent. What was the price of the opti..

  The warrants are exercised

The following data apply to Saunders Corporation: Saunders Corporation currently has 1,000,000 common stocks outstanding. It considers raising $10 million through issuing 20-year 8% coupon bonds – annually paid - with 12 warrants. Each bond has a fac..

  Maximum initial cost the company would be willing to pay

Scanlin, Inc., is considering a project that will result in initial after tax cash savings of $1.86 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. What is the maximum initial cost the c..

  What is the market-to-book ratio and price–earnings ratio

That Wich Corp. had additions to retained earnings for the year just ended of $192,000. The firm paid out $182,000 in cash dividends, and it has ending total equity of $4.87 million. The company currently has 100,000 shares of common stock outstandin..

  Kti you expect kt industries kti will have earnings per

you expect kt industries kti will have earnings per share of 3 this year and expect that they will pay out 1.50 of

  How much the club should invest in each type of stock

The management of a private investment club has a fund of $250,000 earmarked for investment in stocks. To arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high risk (..

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