What is the present value of each of these three investments

Assignment Help Financial Accounting
Reference no: EM132815517

Question - You are given three investment alternatives to analyze. The cash flows from these three investments are as? follows:

End of Year

A

B

C

1.

$1,000

$1,000

$5,000

2.

2000

1000

5000

3.

3000

1000

(5,000)

4.

-4000

1000

(5,000)

5.

4000

3000

15000

Required - What is the present value of each of these three investments if the appropriate discount rate is 14 ?percent?

Reference no: EM132815517

Questions Cloud

How have the insights and information gained : Lastly, how have the insights, knowledge, and information gained from this entire course contributed to your own definition of leadership?
Describe the opportunities as being in a leadership : The SWOT model can also be applied to an individual personally and professionally. Identify 2-3 elements that describe the strength as a leader
What the monthly avoidable costs would be : If the company accepts the offer from the outside supplier, the monthly avoidable costs (that is, costs that would no longer be incurred) would be
Foundation of conflict between israel and palestine : As the author of your text has argued, terrorism is the foundation of conflict between Israel and Palestine.
What is the present value of each of these three investments : You are given three investment alternatives to analyze. What is the present value of each of these three investments
Discuss the developmental stages : Discuss the developmental stages and possible intervention strategies to deal with a crisis for each stage?
How is the principle of conformity examined : In Asch's study referenced above, answer the following questions: How is the principle of conformity examined?
Discuss the importance of petroleum economics : Discuss the importance of petroleum economics and the impact on the hydrocarbons industry. Petroleum Economics has always played vital role in the oil industry.
Strengths of the team leadership model : What are the strengths of the Team Leadership model? What are its weaknesses?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Which conclusions do the variances best support

Which of the following conclusions do these variances best support? More materials were purchased than were used.

  The new product according to the new pricing policy

Bramlett Company has several divisions and just built a new plant with a capacity of 20,000 units of a new product. A standard costing system has been introduced to aid in evaluating managers' performance and for establishing a selling price for the ..

  Should universal electronics purchase the asset

Universal Electronics, Calculate the net present value. (Do not round intermediate calculations and round your answer to 2 decimal places.)

  Prepare a sales budget and a schedule of cash receipts

Haas Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2015. The company president formed a planning committee to prepare a master budget for the first thre..

  Record the required journal entries for the general journal

Record the required journal entries for the General Journal. It was observed that the bank statement did not include deposit of $4,700 made by Romney on May 31.

  How does a financial manager decide

How does a financial manager decide what financial information is relevant to decision-makers? How does the manager know what to include presentation

  Calculate weighted average cost of capital for mccormick

Calculate the Weighted Average Cost of Capital (WACC) for McCormick and Company using the formula WACC = (WD x RD x (1-T)) + (WS x Rs)

  Compute the present value of a stream of cash flows

What The present value of a stream of cash flows you expect to received will always increase. If we hold all other factors the same an increase in interest rate

  Determine capitalized cost of facilities improvement project

University needs your help in doing some economic analysis for a facilities improvement project. The initial construction cost is $10,000,000. Routine maintenance cost is expected to be $200,000 per year. Determine the capitalized cost of this facili..

  What amount before income taxes should be reported

What amount, before income taxes, should be reported in the 20x9 retained earnings statement as the cumulative effect of the change in accounting principle?

  What is the number of units the company must sell

If the company wants to earn a profit of Php 42,000 instead of breaking even, what is the number of units the company must sell

  Calculate the inventory turnover and days sales outstanding

Calculate the 2013 inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. Calculate the 2013 debt-to-assets and times-interest-earned ratios.

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