What is the present value of the project cash

Assignment Help Finance Basics
Reference no: EM131913130

A project's cash flows are $100,000 per year from years 1 through 6. Between years 6 and 7 these cash begin to grow at 5%. You expect this growth to continue forever. What is the present value (at time 0) of the project's cash flows if the opportunity cost of capital is 9%?

Reference no: EM131913130

Questions Cloud

Examine the current value of one share of this stock : The company is planning on increasing its annual dividend by 20% a year for the next four years and then decreasing the growth rate to 5% per year.
What will joshs bank balance be 5 years after the original : What will josh's bank balance be 5 years after the original deposit was made?
Cretae a contribution format income statement for the month : Assume that the company uses variable costing. Determine the unit product cost. Cretae a contribution format income statement for the month.
What growth rate could be supported with no outside : What growth rate could be supported with no outside financing at all? (in %)
What is the present value of the project cash : What is the present value (at time 0) of the project's cash flows if the opportunity cost of capital is 9%?
Cost of equity after recapitalization and wacc : What is the cost of equity after recapitalization and WACC? Do not round calculations
Determine the relative proportion of liabilities and equity : Determine the relative proportion of liabilities and equity. Determine the relative proportion of short-term and long-term assets.
Computing weighted average cost of capital : The weighted average cost of capital is 9 percent. The current market value of the equity is $22 million and the corporate tax rate is 35 percent.
How much money would have been in the account in 1992 : In 1492, Queen Isabella sponsored Christopher Columbus journey by giving him $10,000. If she had placed this money in a bank account.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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