User Account

All Pages

What is the present value of cash flow

Assignment Help Finance Basics
Reference no: EM132953787

You have savings amounting to $1,500 and you expect to save an...

  1. You have savings amounting to $1,500 and you expect to save an additional $800 next year. You need your savings to pay for your tuition fees of $800 in 2 years and $1,000 in 3 years. What is the value of this cash flow today if your savings will earn 6%?
  2. Your professor has taken $350,000 and put it into an account earning 8% annually. She plans to withdraw $3,500 a month and travel all over the world until the money runs out. How many years will it be before you see her again?
  3. Your parents decide to give you $12,000 towards the down payment of your dream car. The car that you have chosen costs $40,000 (TTL). Your friendly banker approves your loan at 6 years, 12%. What is your monthly payment?
  4. If there are 40 more years before you'll retire and you start saving $100 per month, how much will you have when you retire if money is worth 6% in your savings account?
  5. If money is worth 8% compounded semi-annually, would it be to your advantage to pay off a current debt of $8,000 by paying the $8,000 now or $12,000 in 4 years?
  6. If a car dealer quotes you 14% APR and you are going to make your monthly payments, what is the actual rate (effective rate) that you are paying?
  7. What is better, $2,000 received today or $4,000 in 5 years if the discount rate is 14%?
  8. You have an investment opportunity that promises to provide the following cash flow for the next 24 years at 8% interest. What is the present value of this cash flow?

Reference no: EM132953787

Questions Cloud

What is the bond coupon rate : A certain bond has a current yield of 6.50?% and a market price of ?$846.15. What is the? bond's coupon? rate?
Provide the calculations for the depreciation for the year : Provide the calculations for the depreciation for the year ended 29 Feb 2016. You are a trainee accountant for The Finance Team, a company
What is the irr for the project : Your company is analyzing purchase of a machine costing $5,900 today. The investment promises to add $18,500 to sales one year from today, $14,500 two years fr
What is the cost of borrowing : A required 5% compensating balance on borrowed funds; and a 0.5% commitment fee on any unused credit. What is the cost of borrowing?
What is the present value of cash flow : You have savings amounting to $1,500 and you expect to save an additional $800 next year. You need your savings to pay for your tuition fees of $800 in 2 years
Calculate the finance expense for the year ended feb : On 1 February 2016 Mzansi Risk entered into a lease agreement with Hollard. Calculate the Finance expense for the year ended 29 Feb 2016
How margin accounts protect investors against credit risk : Critically discuss how margin accounts protect investors against credit risk.
Find out the ratio of market value per share : Suppose a firm's ROE is 20% and its stock's P/e ratio is 15. From these you can deduce that its ratio of market value per share to book value per share is:
What is a dividend yield : What is a dividend yield and please give example?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determining the maximum profit

The put strike price is $60. The maximum profit (including the premium as the cost) is $55. Is the above statement true or false? Give explanations.

  The principle of diversification states that spreading

The principle of diversification states that spreading an investment over a number of assets will eliminate

  What is the company wacc

Its cost of equity is 10.3 percent, and its pretax cost of debt is 6.4 percent. If the tax rate is 35 percent, what is the company's WACC?

  What is leash n collar internal growth rate

The firm has no preferred stock outstanding. What is Leash N Collar's internal growth rate?

  What is the price of car

If you can borrow money at 8%, what is the price of this car? Assume the payment is made at the end of each year.

  Consumption-investment-government expenditure

Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports

  Compute the remaining margin in the account

Passé Traders opened an account to short-sell 1,000 shares of Internet Dreams at $130 per share. The initial margin requirement was 50%.

  What is the company stock price after three years

Value of Investment. Dawn decides to invest $2,000 each year in stock at the end of each of the next five years. She believes she can earn a 9% return.

  Zero correlation between pmurni and kaf dana fund

You are currently only invested in the KAF Dana Fund (aside from risk-free securities). The expected return for KAF Dana Fund is 13.50% with a volatility of 17.

  Income or conceded income consumption

State whether the accompanying costs are capital, income or conceded income consumption

  Variance-covariance method

The market value of the first index is $7 million, and the market value of the second index is $3 million. Based on the variance-covariance method, compute:

  Considering two product investments

Imagine that you are a divisional manager. Currently you are a member of a committee which is considering two product investments proposed

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd