What is the present value of the cash flows from investment

Assignment Help Accounting Basics
Reference no: EM131581313

Question - A publisher is deciding whether or not to invest in a new printer. The printer would cost $900, and would increase the cash flows in year 1 by $500 and in year 3 by $800. (Assume that there would be zero increase in cash flows in year 2.)

If the interest rate is 12%, what is the present value of the cash flows from the investment?

Reference no: EM131581313

Questions Cloud

Evaluate consumer protection policies : Various U.S. government agencies, among them the Food and Drug Administration (FDA) and the Environmental Protection Agency (EPA).
Calculate the capital balances : Calculate the capital balances for each individual in the new partnership assuming bonus and good will method
Draw and label antonio utility function for snacks : Suppose that Antonio's total utility from different quantities of snacks per day is given by the table below.
Conduct needs assessment for your proposed training program : Conduct a needs assessment for your proposed training program. This should include both a person and a task analysis.
What is the present value of the cash flows from investment : A publisher is deciding whether or not to invest in a new printer. If the interest rate is 12%, what is the present value of the cash flows from the investment
Define the relevance of sociability factors : Define the relevance of sociability factors in higher probability in an investigative case
Large database backup : Assume you have a large database backup you want to store in the cloud, or on a local file server.
Type of operating budget utilized by the chosen agency : Outline the type of operating budget utilized by the chosen agency. Discuss challenges faced by leaders in the article in working through the budget issues
Social work is based on recognizing emotions : The potential implication of this theory in regard to social work is based on recognizing emotions in others.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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