What is the future value of the cash flow stream

Assignment Help Accounting Basics
Reference no: EM133116846

Question - Consider another uneven ash flow stream:

Year

Cash Flow

0

2,000

1

2,000

2

0

3

1,500

4

2,500

5

4,000

Required -

a. What is the present (Year 0) value of the cash flow stream if the opportunity cost rate is 10 percent?

b. What is the future (year 5) value of the cash flow stream if the cash flows are invested in an account that pays 10 percent annually?

Reference no: EM133116846

Questions Cloud

Standby underwriter and best effort underwriter : There are two types of underwriters in cash offer. Explain the difference between Standby underwriter and best effort underwriter.
Compute and analyze if variance is favorable or unfavorable : Compute and analyze if the variance is favorable or unfavorable! How should the report be revised to eliminate these weaknesses
Calculate the gains-losses on the futures and cash markets : Suppose, by design, the FTSE 100 index futures attaches £10 to each point of the FTSE 100 share index level. Also, suppose, in July, the FTSE 100 share index is
Amount of that deposit in year five : What was the amount of that deposit in year five? Round to the nearest dollar, use the $ symbol and comma if necessary.
What is the future value of the cash flow stream : What is the future (year 5) value of the cash flow stream if the cash flows are invested in an account that pays 10 percent annually
What is the price of both bonds now : Bond M is a 4 % coupon bond and Bond N is a 12% coupon bond. Both bonds have twelve years to maturity and issued 2 years ago, make annual payment and have YTM o
What is the current spot rate : If the expected spot rate between the Swedish Krona (SEK) and the EUR is EURO.096/SEK at the end of year 2, what is the current spot rate
What is the total expected maintenance cost : Assuming that this activity is within the relevant range, what is the total expected maintenance cost if the activity level is 8,700 machine hours
Calculate how many units of each product : Weekly demand is estimated to be 100 units of regular and 50 units of deluxe. Calculate how many units of each product

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which is a temporary tax difference

Which is a temporary tax difference that typically results in the recognition of a deferred income tax asset ?Rent revenue collected in advance

  Is the cfo action proper

Accountant from implementing the standard until the required date. Is the CFO's action proper? Why or why not? Is there an ethical issue involved? If so how?

  What is the future value of a given year annuity

You have decided to start saving money for your future. What is the future value of a 16-year annuity of $1,500 per year, assuming that you make your.

  Discuss the home-equity proceeds to purchase a car

What is Sylvester's AMTI if he used the home-equity proceeds to purchase a car

  What are the areas in which metcash conducts its operations

What are the areas in which Metcash conducts its operations? Identify at least FOUR accounts susceptible to misappropriation or fraudulent financial reporting.

  Write up a summary of the article and bring your summary

Find an article that identifies early warning signs of personal debt trouble. Write up a summary of the article and bring your summary and the article to class to share

  What is the value of the bond upon issuance

Silver Corporation issued a five-year, P1,000 non-callable bond which pays P40 semi-annually on June 30, 2015. What is the value of the bond upon issuance

  Compute the equity method balance in QuickPort Investment

On July 1, 2020, QuickPort sold communication equipment to NetSpeed for $15,800. Compute the equity method balance in QuickPort Investment

  Indicate whether each of the following costs for moped

indicate whether each of the following costs for moped manufacturer is a product or a period cost a variable or a fixed

  What will be the overall effect on net operating income

What will be the overall effect on net operating income of the company as a whole - Which choice would be the best in order to break-even?

  Determine break-even point in sales dollars

Annual fixed costs are $120,000 and Variable costs are 40 percent of sales revenue. Determine break-even point in sales dollars

  How much was paid out in cash for wages during the year

Wages expense in the income statement is $58,250 with the statement of financial position at the end of the year showing accrued wages of $2,000.

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