What is the most you would pay for this cash flow

Reference no: EM13271409

You have an opportunity to purchase for $1,000 the follwing cashstream flow: $60 every year for 10 years and $1,000 at the end of the 10 year period. What is the most you would pay for this cash flow stream if your required return was 8%. Would this be a good investment?

Reference no: EM13271409

Questions Cloud

Explain traveled at the speed of light for the entire trip : Light travels extremely rapidly (c = 3.00×108 ). Suppose you had to travel 20 miles to work every day. If you traveled at the speed of light for the entire trip, how long would it take you to get to work (in seconds)? [1 mile = 1.61]

Creating a closeout document and a lessons-learned document : For your capstone project, create a closeout document. The document should contain the sections - Project description, Acceptance criteria, including metrics, such as schedule, budget, and scope performance

What is the monthly rate on annuity : Prof Annuity Corp offers a lifetime annuity to retiring professors.For a payment of $80,000 at age 65, the firm will the pay retiringprofessor $600 a month til death.

Find the probability of e at least 1 defective directly : Three screws are drawn at random from a lot of 100 screws, 10 of which are defective. Find the probability that the screws drawn will be nondefective in drawing (a) with replacement, (b) without replacement.

What is the most you would pay for this cash flow : You have an opportunity to purchase for $1,000 the follwing cashstream flow: $60 every year for 10 years and $1,000 at the end of the 10 year period. What is the most you would pay for this cash flow stream if your required return was 8%. Would th..

Find the exit velocity and the 2nd law efficiency : Steam enters an adiabatic nozzle at 3.5Mpa and 300C with a low velocity and leaves at 1.6Mpa and 250C at a rate of 0.4kg/s. If the surrounding is 10 at 100Kpa and 18C, find A) The exit velocity B)The 2Nd law efficiency

Find the volume flow rate of the refrigerant at turbine exit : Refrigerant 134a enters a steady flow, andiabatic revesible turbine as saturated vapor at 1200kPa and expands to 100kPa. If the power produced by the turbine is 100kW, find the volume flow rate of the refrigerant at the turbine exit.

Influenced people for centuries : The architecture of the Greeks and Romans has influenced people for centuries. When the founding fathers of America began to design Washington, DC, how were they influenced by the Greeks and Romans?

Determine the apparent thickness of the plate : A flint glass plate (n = 1.66) rests on the bottom of an aquarium tank. Calculate the apparent thickness of the plate as viewed from above the water

User Account

All Pages