What is the present value

Assignment Help Finance Basics
Reference no: EM133121514

What is the Present Value ("PV") of the following risky nominal CFs and associated risky nominal discount rates (assume that for years 1, 2 & 3 you receive/spend the CF at the end of the year, and the CF for year 0 is actually now or the present; and compounding is annual)?

Year 0 CF = 4,

Year 1 CF = 20 discount rate = 100%,

Year 2 CF = 40 discount rate = 100%, and

Year 3 CF = -160 discount = 100%.

Reference no: EM133121514

Questions Cloud

Estimate for halliford stock : Halliford Corporation expects to have earnings this coming year of $3.14 per share. Halliford plans to retain all of its earnings for the next two years.
Total return over period : Pinder Co issues a 5-year 6% p.a. semi-annual coupon bond with a face value of $1,000. At issue, the effective annual bond yield is 10%. One year after issue, t
Determine the cash payback period for each proposal : Proposals L and K each cost $500,000, have 6-year lives, and have expected total cash flows of $750,000. Determine the cash payback period for each proposal
Unexpected changes in exchange rates : Walmart is the world's largest MNE by revenue (over $US500b annually) with 11,700 outlets in 28 countries (but not Australia).
What is the present value : What is the Present Value ("PV") of the following risky nominal CFs and associated risky nominal discount rates (assume that for years 1, 2 & 3 you receive/
What is the annual gbp rate : Based on Covered Interest Arbitrage (CIA), the spot GBP/EUR exchange rate is 1/2 or 0.5 GBP per 1 EUR, the one year forward GBP/EUR exchange rate is 1 for 1, an
Compute the weighted average cost of capital : Given 8% after-tax cost of debt (25% of total capital), 10% costs of preferred stock (35% of total capital), Compute the weighted average cost of capital
Philosophical assumptions made by the researchers : What are the philosophical assumptions made by the researchers when they undertake a qualitative study?
Explain the term balancing risk and control : Explain the term 'balancing risk and control'? Who is responsible for risk assessment and what method they can use to assess the risk

Reviews

Write a Review

Finance Basics Questions & Answers

  Decision on real interest rate and exchange rate

Going forward, what will be impact of State Bank of Pakistan's monetary policy decision on Real Interest Rate and Exchange Rate?

  What is the 95 percent probability range of returns

Assume that for a period of time, long-term corporate bonds had an average return of 8.0 percent with a standard deviation of 12.0 percent. What is the 95 percent probability range of returns?

  What is the hpy on your investment

Two years from now, the YTM on your bond has declined by 1 percent, and you decide to sell. What price will your bond sell for? What is the HPY on your investment? Compare this yield to the YTM when you first bought the bond. Why are they differen..

  Company weighted average cost of capital

The bonds are selling at 102% of face value. The company's tax rate is 25%. What is the company's weighted average cost of capital (WACC)?

  What is abc after-tax debt payment

In 20X1, ABC paid $40 million in interest and earned $75 million in accounting income.

  Calculate the 90-day commercial paper

Calculate the 90-day Commercial Paper (CP) forward rate starting day 270, if you know the following spot CP rates:

  How much should blaymount spend on advertising

For the past 11 productions their spending on advertising (in hundreds of pounds) and total audience are shown in the following table. If the hall capacity is now 300 people, how much should Blaymount spend on advertising?

  Develop a list of entrepreneurial opportunities

Entrepreneurial Opportunities: Develop a list of entrepreneurial opportunities outside the confines of the company you selected. Each opportunity in your list.

  Financing the project out of debt

If the firm issues equity, they believe the equity may be underpriced by 10.45 %. What is the cost to current shareholders of financing the project out of debt?

  How should a fleet parameters be improved

By assigning costs to fleet increases in each model parameter, investigate the optimum way to equip a fleet to fight a known enemy under the Hughes.

  Explain relationship of price elasticity and total revenue

Describe relationship between price elasticity and total revenue? How does price elasticity of demand affect a firm's pricing decisions?

  What is the present value of the terminal value of srt

What is the present value of the terminal value of SRT, Inc.?

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