What is the net present value of investment

Assignment Help Finance Basics
Reference no: EM132403007

You are making a $120,000 investment and feel that a 20 percent rate of return is reasonable given the nature of the risks involved. You feel you will receive $48,000 in the first year, $54,000 in the second year, and $56,000 in the third year. You expect to pay out $12,000 as an additional investment in the fourth year. What is the net present value of this investment given your expectations? Using a mathematical calculation and financial calculator.

Reference no: EM132403007

Questions Cloud

What is the debt promised rate of return : What is CC's equity cost of capital? What is the expected payoff of the debt? What is the debt's promised rate of return?
Present value of the tax shield : If TTI's marginal tax rate is 30%, then present value of the tax shield it will create?
What is the implied tax rate for stephens : What is the implied tax rate for Stephens, Inc. investors?
Estimating cost of capital measures : US Steel has $3.16 billion in total debt (which approximates its market value). Interest expense for the year was about $214.0 million.
What is the net present value of investment : What is the net present value of this investment given your expectations? Using a mathematical calculation and financial calculator.
What do you think about tech companies entering the finance : What do you think about tech companies entering the finance industry? Is it going to hurt other finance companies?
Discuss the importance of fair and accurate financial report : Discuss the importance of fair and accurate financial reporting in the healthcare industry in a few paragraphs.
What is the value of the convertible bond : If, after one year, the value of the conversion option is unchanged, what is the value of the convertible bond?
Explain the government intervention in financial markets : Explain the government intervention in financial markets with suitable examples - Money markets enable financial market participants to maintain liquidity

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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