What is the present value of the cash flow

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1. Silver Sun Shipping just bought a new medical clinic. To pay for the medical clinic, the company took out a loan that requires Silver Sun Shipping to pay the bank a special payment of 19,880 dollars in 4 month(s) and also pay the bank regular payments. The first regular payment is expected to be 1,700 dollars in 1 month and all subsequent regular payments are expected to increase by 0.42 percent per month forever. The interest rate on the loan is 1.42 percent per month. What was the price of the medical clinic?

2. An investment, which has an expected return of 15.28 percent, is expected to make annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate of 2.79 percent per year. The cash flow in 1 year from today is expected to be 33,010 dollars. What is the present value (as of today) of the cash flow that is expected to be made in 7 years?

3. An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate annually. We know that the cash flow expected in 2 year(s) from today is expected to be 1,510 dollars and the cash flow expected in 8 years from today is expected to be 3,340 dollars. What is the cash flow expected to be in 5 years from today?

4. Marco has an investment worth 642,332 dollars. The investment will make a special payment of X dollars to Marco in 2 month(s) and the investment also will make regular, fixed monthly payments of 5,450 dollars to Marco forever. The expected return for the investment is 0.87 percent per month and the first regular, fixed monthly payment of 5,450 dollars will be made to Marco in 1 month. What is X, the amount of the special payment that will be made to Marco in 2 month(s)?

Reference no: EM131963158

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