What is the future value of these cash flows

Assignment Help Accounting Basics
Reference no: EM132513357

Question - Herlige Narren AS has identified an investment project with the following cash flows.

Year

Cash Flow (DKK)

1

950

2

1,190

3

1,540

4

1,905

Assume all the cash flows have occurred at the beginning of the year. (Do not round intermediate steps. Round your answer to 2 decimal places (e.g., 32.16). The program includes a margin of error of +/- 1%.)

Requirement 1: If the discount rate is 10 per cent, what is the future value of these cash flows at the end of year 5?

Requirement 2: What is the future value of these cash flows at the end of year 5 at a discount rate of 15 percent?

Requirement 3: What is the future value of these cash flows at the end of year 5 at a discount rate of 20 percent?

Reference no: EM132513357

Questions Cloud

Calculate the firms operating income : Calculate the firm's operating income (or loss) if unit selling price and variable expense per unit do not change and total revenues decrease by $10,000
Magnitude of the work done by friction : A 5.7 N kinetic friction force opposes the motion. What is the magnitude of the work done by friction if the box when the box is moved 8.0 m?
Acceleration of gravity on jupiter : How long would a pendulum have to be on Jupiter to have the same period as a pendulum 1 m long on Earth?
What is the estimated bad debt expense for current year : Allowance for Doubtful Accounts is $540. Credit sales during the year totaled $154,000. What is the estimated Bad Debt Expense for the current year?
What is the future value of these cash flows : Assume all the cash flows have occurred at the beginning of the year. What is future value of cash flows at the end of year 5 at a discount rate of 15 percent
Determine how many revolutions has the wheel gone : If the angular speed of the wheel is 3.50 rad/s at t = 0, how many revolutions has the wheel gone through after 4.00 s?
Find which cost method results in the highest gross profit : If inventory costs have been falling during the year, which cost method results in the highest gross profit for the year?Specific identification
About the hilary case : Write a summary of the main activities that you, as the paralegal, need to take in order to prepare the Hilary Case for trial.
Chinese globalization versus western globalization : Project - Chinese Globalization versus Western Globalization - do you think that China instead of the USA is capable of steering the world globalization

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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