What is the present value of cash flows

Assignment Help Financial Management

Reference no: EM13987915

Assume that you will receive $2,000 a year in Years 1 through 5, $2,500 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of the year. If you require a 14 percent rate of return, what is the present value of these cash flows?

Reference no: EM13987915

Questions Cloud

Identical to GAAP retained earnings : Will Corporation has two over’s, Gus and Jack who are father and son. Gus owns 100 shares which he acquired in 2005 for 15,000. Jack owns 100 shares which he acquired in 2007 for 21,000. Will Corp. accumulated E and P is identical to GAAP retained ea..

In what ways are mbuti cultural practices similar to our own : In what ways are Mbuti cultural practices similar to our own? Despite our cultural differences, all human societies have some things in common (a need to get food, water, shelter, and social stability, as well as the need to make friends, teach ch..

What factors account for tremendous growth in us economy : Complete a 3 page-paper according to APA FORMAT AND REQUIREMENTS. What factors account for the tremendous growth in the American economy between 1790 and 1860?

What does the mutual fund theory imply : What does the mutual fund theory imply?

What is the present value of cash flows : Assume that you will receive $2,000 a year in Years 1 through 5, $2,500 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of the year. If you require a 14 percent rate of return, what is the present valu..

Offered the opportunity to invest in a venture : You have been offered the opportunity to invest in a venture? that will pay $4464 per year at the end of years one through three and $5494 per year at the end of years four and five. These cash flows will be placed in a savings account that will pay ..

Yield to call and yield to maturity : Yield to Call, Yield to Maturity, and Market Rates Absalom Motors' 13% coupon rate, semiannual payment, $1,000 par value bonds that mature in 10 years are callable 2 years from now at a price of $950. The bonds sell at a price of $1,100, and the yiel..

Calculate the inductive reactance and the current : A coil of wire having negligible resistance and an inductance of 0.248 henry is connected to a 117-volt 50-cycle source. Calculate (a) the inductive reactance, (b) the current, (c) the maximum power delivered to the inductor or returned to the sou..

Utilizing past cost and expense ratios : In a period of rising sales, utilizing past cost and expense ratios (percent-of-sales method) when preparing pro forma financial statements will tend to ________.

User Account

All Pages