What is the present value

Assignment Help Finance Basics
Reference no: EM132544537

What is the present value of $1,000 received every year forever? The interest rate is 6 percent p.a. and the first payment is received in year 4.

Reference no: EM132544537

Questions Cloud

Calculate the internal rate of return for machine a : Suppose that ABC Ltd is considering purchasing one of three new processing machines. Either machine would make it possible for the company to produce its produc
Choice of the discount rate and adjustment for risk : Polycorp is investigating two projects. The risk-free rate is 5% pa and the market return is 12%pa. Project A has a beta of .7 and Project B has beta of 1.5.
Consequence of using the wacc : One important consequence of using the WACC to assess projects is that it implies that businesses can maximise debt usage rather than equity
How many years will alphonzo and his wife be able to stay : He expects to withdraw $15,000 per year in the old country. How many years will Alphonzo and his wife be able to stay?
What is the present value : What is the present value of $1,000 received every year forever? The interest rate is 6 percent p.a. and the first payment is received in year 4.
Calculate cash conversion cycle for ahmed cement company : Assume that Ahmed cement company is starting in business, buying devices from a manufacturer in Austria and selling them through distributors all over world
Capitalize the lease on the balance sheet : Connors Construction needs a piece of equipment that can be leased or purchased. The equipment costs $100. One option is to borrow $100 from the local bank
Operating lease or capital lease : Calculate if the lease should be treated as an operating lease or capital lease. What benefits will capital lease yield over operating lease.
Why would a bond be sold on a premium or discount : Explain when and why would a bond be sold on a premium or discount? You may use graphs, equations, or other aids to assist your explanation.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the total interest firm a pays

Calculate the total interest Firm A pays-which is equal to the amount Firm A pays Citibank, plus the amount Firm A pays Firm B

  What is the capital gain rate for this transaction

a stock is bought for $22.00 and sold for $26.00 one year later, immediately after it has a paid a dividend of $1.50. What is the capital gain rate for this transaction?

  What is the terminal value

The risk free rate is 6% and the market risk premium is 4.5%. what is the terminal value?

  Opportunity cost of capital for type of equipment

The market value today of the current machine is $50,000. Your? company's tax rate is 40%?, and the opportunity cost of capital.

  Ethics code group project1 your group project is to draft

ethics code group project1 your group project is to draft an ethics code for your business.nbspnbsp your business team

  Determine the source of funding that you would choose

Determine the source of funding that you would choose and the currency in which the loan would be denominated. Provide a rationale for your response.

  What will be the market price of the security

The market price of a security is $45. Its expected rate of return is 14.2%. The risk-free rate is 4% and the market risk premium is 7.6%. What will be the market price of the security if its correlation coefficient with the market portfolio doubles ..

  What will be effect of the price increase on the firms fcf

Depreciation and amortization charges are $20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm's FCF fo..

  Stockholders equity section

Prepare journal entries to record the transactions described above. Prepare the December 31, 2011, stockholders' equity section. Assume 2011 net income was $330,000

  Discuss the expense for the bonus depreciation

During 2016 Palo Fiero purchases the following property for use in his calendar year end manufacturing business: manufacturing equipment june 2 $37,000 Office.

  Net working capital investment

Suppose you also know that the firm's net capital spending for 2014 was $1,390,000, and that the firm reduced its net working capital investment by $73,000. What was the firm's 2014 OCF?

  What is the probability that at least half of the room

What is the probability that at least half of the rooms are occupied on a given day?

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