What is the present value of an investment

Assignment Help Financial Management

Reference no: EM13885070

What is the present value (PV) of an investment?

A) the amount that an investment would yield if the benefit were realized today

B) the difference between the cost of the investment and the benefit of the investment in dollars today

C) the amount you need to invest at the current interest rate to re-create the cash flow from the investment

D) the amount by which the cash flow of an investment exceeds or falls short of the cash flow generated by the same amount of money invested at market rate

Reference no: EM13885070

Questions Cloud

Fluctuations in the value of their investments : Rational investors ________ fluctuations in the value of their investments.

Return on average compared to treasury bills : Historically, stocks have delivered a ________ return on average compared to Treasury bills but have experienced ________ fluctuations in values.

Dividends-what is the current share price : Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 11 percent, and the company just paid a di..

What is the present value of an investment : What is the present value (PV) of an investment?

What is the value of a stock with an expected dividend : If expected dividends grow at 6% and the appropriate discount rate is 10%, what is the value of a stock with an expected dividend of $2.75?

Weighted-average process costing to account for production : Victory Company uses weighted-average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the process. Instead of being 30% complete with respect to ..

How much does she need to place in a saving account today : Camila plans to go for vacation to Australia in 11 years from now. She estimates that she will need $26,222 for the trip. How much does she need to place in a saving account today that earns 5.12 percent per year (compounded quarterly) to accumulate ..

Hamptons home of a famed socialite hits the market : “Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan – a Gilded Age heiress and socialite, re-nowned for her beauty and wealth. Now Ms. Balsan’s onetime Hamptons home is slated to hit the market priced at $28 million with Tim Davis of..

User Account

All Pages