What is the net present value of the cash flow

Assignment Help Operation Management

Reference no: EM131870465

Question: At the end of two years, the cash flow is $23,800. The discount (interest) rate in year one is 5%, and in year 2 is 10%. What is the net present value of that cash flow? Provide two significant digits after the decimal point.

(Hint: If you invested $1 at time zero, what would you have at end of year 2?)

Reference no: EM131870465

Questions Cloud

Basis of a psychological test : Suppose a psychiatrist has to classify people as sick or well (hospitalized br not) on the basis of a psychological test.

How does discrete presentation differ from blending : Many public universities are quite similar to their private counterparts. How does discrete presentation differ from blending? When is each appropriate

Write a memo outlining onet findings : BUS 4045 - Write a 3-4 page memo outlining O*Net findings used to prepare a CapraTek regional sales representative job description - develop a job analysis

What are the principal advantages of a subchapter selection : What are the principal advantages of a Subchapter Selection? State two tax advantages resulting from the use of "debt"

What is the net present value of the cash flow : At the end of two years, the cash flow is $23,800. The discount (interest) rate in year one is 5%, and in year 2 is 10%.

What is the loan effective annual rate : Effective Annual Rate A loan is offered with monthly payments and a 10.75 percent APR. What's the loan's effective annual rate (EAR)?

Annual dividends paid by oxygen optimization stock : The next three annual dividends paid by Oxygen Optimization stock are expected to be 6.27 dollars in one year, 7.11 dollars in two years,

Prepare a schedule of expected cash payments for purchases : Use this information to prepare a schedule of expected cash payments for purchases of inventory for the months of November and December only

Create a graph to show the expected values : Create a graph to show how the expected values of the two options change as the probability of high demand changes from 0 to 1. (Create only ONE graph.)

User Account

All Pages