What is the future value of this investment at end of year

Assignment Help Financial Management
Reference no: EM131959601

1. You are given an investment to analyze. The cash flows from this investment are, End of year: 1. $1,555   2. $3,720   3. $817  4. $2,484   5. $1,432. What is the future value of this investment at the end of year five if 18.54 percent per year is the appropriate interest (discount) rate?

2. Jcohn plans to buy a vacation home in 7 years from now and wants to have saved $72,564 for a down payment. How much money should he place today in a saving account that earns 7.70 percent per year (compounded daily) to accumulate money for his down payment?

Reference no: EM131959601

Questions Cloud

Find the actual cost of borrowing for the company : Your company sold 5 year zero coupon bonds with a YTM of 5percentage. If the tax rate is 21percentage, what is the actual cost of borrowing for the company?
Find the firm cash flow from assets : The firm increased its net working capital investment by $70,000, find the firm's 2013 cash flow from assets (CFFA).
Save money for education : You are going to save money for your son's education. How much money will be in the account at the end of that time period?
Discuss characteristics of the basic descriptive statistics : Discuss the characteristics of the basic descriptive statistics: sample size, mean and standard deviation
What is the future value of this investment at end of year : What is the future value of this investment at the end of year five if 18.54 percent per year is the appropriate interest (discount) rate?
What will the per share price be : A company's stock is priced at $50 per share, and it plans to pay a $2 cash dividend. § Assuming perfect capital markets, what will the per share price.
The balance in the investment drops to zero : how long (to the nearest year) before the balance in the investment drops to zero?
Compute the monthly payment amount of this loan : Compute both the annual and the monthly effective interest rates for this loan. Compute the monthly payment amount of this loan.
What should be the price of two year zero coupon bond : What should be the price of a two year zero coupon bond with a face value of $100?

Reviews

Write a Review

Financial Management Questions & Answers

  The work can be safely performed by the new employees

Hiring physically challenged people to clean bowling shoes will save BowlingBackOffice, Inc (BBO) $3,000 per year for the next 5 years but will require a $10,000 investment to retrofit the work area and review operating procedures to ensure that the ..

  Should the firm undertake the healthy bottled water project

Cascade Water Company (CWC) currently has 30,000,000 shares of common stock out- standing that trade at a price of $42 per share. CWC also has 500,000 bonds outstanding that currently trade at $923.38 each. CWC has no preferred stock outstanding and ..

  Define each of the eight performance measures

Define each of the eight performance measures, list how they determine company performance; how each relate to a company, along with an example for each:

  Determine what will be the firms growth rate

Given that a firm's return on equity is 18 percent and management plans to retain 40 percent of earnings for investment purposes, what will be the firm's growth

  What is the value of palmer to plant

What is the value of Palmer to Plant? What would Plant’s gain be from this acquisition?

  Valuation method for project to mid-year approach

To make the valuation process more realistic, you’ve decided to switch the valuation method for a project to a “mid-year” approach

  Included among the investment numbers of capital budget

If the bond’s coupon rate is equal to the general rates in the market, the bond will sell at a. When projected assets are less than projected liabilities and equity, the firm will have. Which of the following would be included among the investment nu..

  Responsible for online advertising campaign

You are responsible for an online advertising campaign for your company.

  What will the firm cost of equity be if firm makes switch

What will the firm's cost of equity be if the firm makes the switch? Ignore taxes.

  Describe five ways to fund clothing start up business

List and describe five ways to fund a clothing start up business.

  What is the beta of your portfolio

Portfolio Beta You own $20,000 of City Steel stock that has a beta of 3.30. You also own $37,500 of Rent-N-Co (beta = 1.75) and $20,500 of Lincoln Corporation (beta = -.85). What is the beta of your portfolio?

  Discuss both the buyer and the seller of these puts

We have 20,000 shares of IBM, which we bought for $50 per share. We buy protective puts against them at a strike price of $62 for which we have to pay a $2 premium. Explicate on the results and the ROR we make in the following two cases. First, assum..

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