What is the present value of machine

Assignment Help Corporate Finance
Reference no: EM133122986

The annual cash-flow schedule follows a special pattern. It generates $200 when the year number is odd but -$100 when the year number is even (including year 0) due to maintenance. The entire cash flow starts at year 0 and it lasts forever. Assuming an effective annual rate of 10%. What is the present value of this machine?

Reference no: EM133122986

Questions Cloud

Dressing and grooming as per the care plan : Assist a client admitted in your clinical setting with showering, dressing and grooming as per the care plan given
Background and history of the tesla corporation : Discuss the background and history of the TESLA Corporation. Describe the industry in which they operate and key elements of the economy or current events impac
Prepare a contribution margin by product report : Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent
Default of the counterparty : In an interest rate swap, what would be a typical range (order of magnitude) for the exposure (the amount that could be lost in case of a default of the counter
What is the present value of machine : The entire cash flow starts at year 0 and it lasts forever. Assuming an effective annual rate of 10%. What is the present value of this machine?
What is the hedge fund return on strategy : During the period of their investment, Starbucks stock moves from $100 to $120, Dunkin Donuts moves from $25 to $27, and the overall market increases by 3%.
Computing the rate of return on investment : You sold shares of Northwest Corp. short at $74.46 per share. Your initial margin was 0.8%. One year later you cover your short at $75.94 per share. If Northwes
What is the amount of dividends of coca-cola : Coca-cola reports an increase in retained earnings of $3.2 billion and net income of $6.9 billion. What is the amount of dividends of Coca-cola
What is your rate of return on investment : You sold shares of Northwest Corp. short at $74.46 per share. Your initial margin was 0.8. One year later you cover your short at $75.94 per share. If Northwest

Reviews

Write a Review

Corporate Finance Questions & Answers

  Explain how the sports exports company is exposed

Explain how the Sports Exports Company is exposed to exchange the rate risk and how it could use the Foreign market

  How much was allowance for doubtful accounts

How much was Allowance for Doubtful Accounts for 2017? How does the company estimate allowances for Bad Debt?

  Prepare a common-sized income statement

Convert the vertical profit and loss account of the company into multi-step form to the extent possible and prepare a common-sized income statement.

  How are financial controls different for global organization

What is the primary financial control tool used to manage operations? How are financial controls different for a global organization? Provide three examples.

  Prepare a classified balance sheet with a proper heading

Prepare a classified balance sheet with proper heading on a spreadsheet. For assets, use classification of current assets, plant and equipment and other assets.

  Calculating the expected impact and the standard deviation

Quantitatively evaluating the following information by computing expected impact, standard deviation, & the coefficient of variation for each risk.

  What is the appropriate cost for retained earnings

The rate on six-month T-bills is 3.60%, and the return on the S&P 500 index is 7.74%. What is the appropriate cost for retained earnings in determining the firms cost of capital?

  How has the fed been operating

What were some of the things that the Fed/Treasury did correctly around the crisis? What did they botch - how has the Fed been operating? Who in particular (businesses, classes of people) do their policies benefit? Which asset classes have been a..

  Compute the initial public offering value of facebook stoc

Evaluate the valuation and method used to determine the Initial Public Offering value of Facebook stock, indicating any miscalculations in the valuation that may have mislead potential investors and how these errors may have been minimized.

  How much money will you receive when you sell the bond

How much money will you receive when you sell the bond? If yields were 10.8 percent, how much would you receive?

  Elk county telephone has paid the dividends shown in the

elk county telephone has paid the dividends shown in the following table over the past 6 years.year dividend per

  Compute the amount of receives

The CFO asks you to compute the amount of $X receives on the €5 Million it receives today at the current $1.30/€1 exchange rate.

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