What is the future value of his investment cash flows

Assignment Help Financial Management
Reference no: EM131459114

Chuck Brown will receive from his investment cash flows of $3,135, $3,490, and $3,830 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at the end of three years? (Round to the nearest dollar.)

Reference no: EM131459114

Questions Cloud

Calculate cost of common equity financing using sml formula : Paul Sharp is CFO of Fast Rocket Inc. He tries to determine cost of equity financing for company. Calculate cost of common equity financing using SML formula.
What will be the value of the investment in two years : What will be the value of the investment in two years?
Specialized budgets to the comprehensive budget : What is the relationship of specialized budgets to the comprehensive budget?
Calculate your free cash flow for years : Calculate your free cash flow for years 0-6. Calculate the NPV of this potential investment if the appropriate cost of capital is 10%.
What is the future value of his investment cash flows : what is the future value of his investment cash flows at the end of three years?
The returns for the last six months for the portfolio : The returns for the last 6 months for the portfolio and the S&P 500 have been:
Determine the present value of the trust funds final value : Determine the present value of the trust fund's final value.
Explain the difference between abnormal and normal earnings : Discuss how risk and profitability factors cause differences in price-earnings ratios across firms. Explain the difference between abnormal and normal earnings.
Calculate cost of common equity financing using gordon model : Last year the Black Water Inc. paid dividends $4.35. Calculate the cost of common equity financing using Gordon Model.

Reviews

Write a Review

Financial Management Questions & Answers

  Costs are expected to increase

A printing press was purchased 4 years ago for $100,000. The current market value is $45,000, which will decline as follows over the next 5 years: $40,000, $33,500, $28,000, $24,000, and $17,000. The O & M costs are estimated to be $16,000 this year...

  What will be your monthly payment

You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your annual interest rate is 10% and you intend to pay for the car over five years. What will be your monthly payment?

  The direct spot quotes on the pound

The direct spot quotes on the pound in New York are $1.4783 – 91. The 30-day forward quotes in points are (bid - ask) 14 – 9. What is the outright 30-day forward bid quote?

  Why do that pimlico ltd established the subsidiary in china

Why do you think that Pimlico Ltd established the subsidiary in China instead of Japan? Assume no major country risk barriers.

  Estimate that still makes the decision to mine worthwhile

A mining company will spend $28 million in order to exploit a low-grade placer deposit of gold ore. They estimate the deposit will produce profits of $6 million per year for six years. They calculate the net present value (NPV) using an estimated cos..

  It makes sense to always sell your risky assets when market

A variable annuity contract can be defined as a contract in which the insurance company varies the annuity payments based on the net income of the insurance company. If the net income of the insurance company increases, then the annuity payments asso..

  Goal of the firm and how a manager decisions

Explain the goal of the firm and how a manager decisions in the areas of working capital management and capital structure act to achieve this goal? Please provide source?

  A conversion feature allows

A conversion feature allows: A convertible bond is currently selling for $970. It is convertible into 15 shares of common which presently sell for $50 per share. The conversion premium is

  Margin and leverage

Margin and Leverage (LO3, CFA4) suppose the call money rate is 5.6 percent, and you pay a spread of 1.2 percent over that. You buy 1,000 shares at $40 per share with an initial margin of 50 percent. One year later, the stock is selling for $45 per sh..

  Discuss the risks-incentives and ramifications associated

Please discuss the risks, incentives and ramifications associated with the Apple situation. Discuss how this can impact and also change the world of cyber security and data breaches and how this can possibly revolutionize the way of The United States..

  What is the probability that the call is exercised

What is the value of d2 and the value of d1? What is the probability that the call is exercised? What is the discounted expected value of the sale price assuming the call is exercised optimally? What is the discounted expected value of the purchase p..

  About the sell certain land

Roberta offers to sell certain land to Emily for $10,000. This offer is made by a letter, signed by Roberta and mailed on March 1, 1990. The letter also stated that the offer would be kept open until July 1, 1990. Discuss in detail whether there is a..

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