User Account

All Pages

What is the present value of investment

Assignment Help Finance Basics
Reference no: EM132622056

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 9.9 percent, compounded annually.

End of year

1. $613
2. $3,893

3. $1,676

4. $1,596

What is the present value of this investment if 9.9 percent per year is the appropriate discount rate?

Reference no: EM132622056

Questions Cloud

Calculate the amount of direct materials used during year : Das Ben is reviewing the cost structure, One of the functions of management accounting is calculate product cost. Indicate how product costs are calculated
What is the tax advantages of Sarbanes-Oxley : What is the tax advantages and tax disadvantages of Sarbanes-Oxley in relations to the extent to which increased regulation is helpful in preventing fraud
Synthesis paper-doctoral identity : Critical thinking is one of many vital skills that learners must develop in order to successfully examine research, analyze data,
What a cost is for swa company : SWA company is trying find costs of its products. Which of the following statements is true? A cost is? Always an expense./Always a liability.
What is the present value of investment : You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 9.9 percent,
Identifying the overhead cost driver : Calculating a predetermined overhead rate per unit of cost driver. Calculating a predetermined overhead rate per unit of product.
Calculate total assets : Given the following list of accounts, calculate Total Assets: Accounts Receivable 5,000, Capital Stock 20,000, Cash 19,300 and Equipment 15,400
What is the result for BX company : BX company underestimated the manufacturing overhead budget and underestimates the activity base for the year, what is the result?
Find what profit will make : On arrival, every ticket holder will be given a bottle of water, worth £1 per bottle. If Luke sells 400 tickets as he anticipates, what profit will he make?

Reviews

Write a Review

Finance Basics Questions & Answers

  Experience crises due to changes in economic conditions

Organizations can experience crises due to changes in economic conditions. In an economic downturn where individuals lose their jobs, many also lose their medical insurance coverage. With fewer employees on the payroll, states receive less revenue..

  What you believe to be the best course of action for blinko

What you believe to be the best course of action for Blinko, Inc., and why. How should ethics factor into managerial decisions?

  What journal entry will brickyard make when paying interest

Use the information above to answer the following question. What journal entry will Brickyard make when paying the interest at maturity?

  Diversified portfolio of real estate investment

Fairfax is considering obtaining exposure to the Real Estate asset class through purchase of a diversified portfolio of Real Estate Investment Trust Shares.

  Expected return on the shares of the law

If the interest rate on Treasury bills is 5% and the expected return on the market portfolio is 20%, what is the expected return on the shares of the law.

  Explain what is meant by the informational content of

explain what is meant by the informational content of dividend

  Which of the given is likely to impose a large excess burden

A tax of 24 percent on the use of cellular phones. (This is the approximate sum of federal and state tax rates in California, New York, and Florida.)

  Indicate the correct accept-reject decision for each

Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept-reject decision for each.

  What is the maximum price per share schultz should pay

The cost of capital for Schultz and Arras is 9 percent and 7 percent, respectively. Arras currently has 3 million shares of stock outstanding and $25 million in debt outstanding.

  In the finance textbook by cornett adair and nofsinger

in the finance textbook by cornett adair and nofsinger discusses various criteria for calculating and analyzing the

  Apply the decision rules used in the class

Apply the decision rules used in the class and select the best alternative.

  What is the companys pretax cost of debt

Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 18 years to maturity that is quoted at 106 percent of face value. The issue makes semiannual payments and has an embedded cost of 5 percent annuall..

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