User Account

All Pages

What is the present value of the cash flow expected

Assignment Help Financial Management
Reference no: EM131937027

An investment, which has an expected return of 18.2%, 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 7.4% per year.

The cash flow expected in 1 year from today is expected to be $80,000. What is the present value (as of today) of the cash flow that is expected to be made in 10 years from today?

Reference no: EM131937027

Questions Cloud

Visible in a single daughter cell : At the end of mitosis how many chromatids will be visible in a single daughter cell? Explain
Calculate haslam profit margin : Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. Calculate Haslam's liabilities-to-assets.
Suppose you placed a plant that contained starch : Suppose you placed a plant that contained starch in the dark and left it there for a week. at the end of the week, what result expect an iodine test to show?
Create a swing program with a windows look and feel : Create a Swing program with a Windows look and feel to display data about your favorite musical artists.
What is the present value of the cash flow expected : What is the present value (as of today) of the cash flow that is expected to be made in 10 years from today?
Climat change and insect breeding : What is the connection between climat change and insect breeding? Can climate change affect the evolution of insects?
How much insurance company pay for repairing damage to home : Assume you have a home which would cost $120,000 to replace. You currently have the home insured for $85,000. Last night a tornado damaged your home.
Department complaining of a severe headache and nausea : A 32-year-old woman is seen in the emergency department complaining of a severe headache and nausea. She reports a history of headaches off
What does bill believe the inflation rate will be over : An investment offers a 13.5 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 6.5 percent.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the forward exchange rate

International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consis..

  Example of capital flight

Which one of the following is an example of capital flight? Which of the following is not included in the Current Account.

  Calculate and explain in words all calculations

For the last 10 years you have been depositing a fixed amount into your savings account. You have been doing that once a year at the beginning of each year. You now have $35,000 in your account. What has the dollar amount of each deposit been if you’..

  What is the real rate of return for large-cap stocks

Large-cap stocks had the nominal rates of return of 8.95 percent. The rate of inflation during the last year was 2.212 percent. What is the real rate of return for large-cap stocks?

  Based on economists forecasts and analysis

Based on economists’ forecasts and analysis, one-year T-bill rates and liquidity premiums for the next four years are expected to be as follows: Identify the four annual rates.

  Compute IRR-simple payback period-discounted payback period

Compute the IRR, simple payback? period, and discounted payback period of the proposed investment.

  Calculate the net income

Garden Pro Corporation has sales of $4, 717, 510; income tax of $582, 139; Calculate the net income?

  What safe payments can each of the partners take

What, if any, safe payments can each of the partner's take?- what safe payments can each of the partner's take?

  Concept of property rights relate to institution of slavery

How did the concept of property rights relate to the institution of slavery?

  Pertaining to assessing earnings quality

Which of the following statements, pertaining to assessing earnings quality, is incorrect?

  The highest net profit possible for the speculator based

The highest net profit possible for the speculator based on the information above is:

  What three groups use ratios and for what reasons

Why are ratios useful? What three groups use ratios, and for what reasons? What are the most critical steps of financial analysis?

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