What is the present value of the expected cash flows

Assignment Help Finance Basics

Reference no: EM13271298

You are paid to teach classes for the university and wonder how much money the university makes from your graduate-level classes. Based on historical data, you determine that your summer classes for the next seven years will generate an average annual revenue of $93,850. If you discount these cash flows at an annual rate of 8.30%, what is the present value of the expected cash flows?

A) $483,644.36 B) $656,950.00 C) $845,133.52 D) $523,786.85

Reference no: EM13271298

Questions Cloud

Design a mod 6 counter that counts in the natural sequence : DESIGN A mod 6 counter that counts in the natural sequence. DO NOT include the undesired states in your design (therefore, you will have don't care condition ). show all steps for the complete design of this synchronous counter

What was the average annual rate of growth : In 1930, the highest paid player in major league baseball was Babe Ruth of the New York Yankees, with an annual salary of $80,000. In 2000, the highest paid player in major league baseball player was Alex Rodriguez, also of the New York Yankees, w..

How much money will you have in the account : If your account earns 7% per year, how much money will you have in the account at the end of year three when the last deposit is made?

What is the present value of the furniture payments : Further, you may pay for the furniture in three equal annual end-of-the-year payments of $1,100 each with the first payment to be made one year from today. If the discount rate is 6%, what is the present value of the furniture payments?

What is the present value of the expected cash flows : Based on historical data, you determine that your summer classes for the next seven years will generate an average annual revenue of $93,850. If you discount these cash flows at an annual rate of 8.30%, what is the present value of the expected ca..

Methods that are utilized in the human resource process : Briefly explain the purpose of any three selection methods that are utilized in the human resource process.

Prepare the consolidated financial statements for peony : Prepare the consolidated financial statements for Peony at December 31, 20X6 using the direct method - Prepare a consolidated income statement for Chee Co. for the year ended December 31, 20X8. Be sure to show your supporting calculations.

How far from the film should the lens be placed : A camera is equipped with a lens with a focal length of 23 cm. how far from the film should the lens be placed

What is the present value of your winnings : You have just won the Reader's Digest lottery of $5,000 per year for twenty years, with the first payment today followed by nineteen more start-of-the-year cash flows. At an interest rate of 5%, what is the present value of your winnings?

User Account

All Pages