What is the present value of the savings

Assignment Help Financial Management
Reference no: EM13972039

Your company will generate $57,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.8%, what is the present value of the savings?

Reference no: EM13972039

Questions Cloud

Read and the system call : In the example given in Fig. 1-17, the library procedure is called read and the system call itself is called read. Is it essential that both of these have the same name? If not, which one is more important?
What questions does the article leave unanswered : Explain if these studies were observational, experimental, technological or some combination of the three. If applicable, identify the independent and (at least one) dependent variables. What possible confounding variables are present in the stud..
Identifies the major social institutions in society : Write a 700- to 1,050-word essay explaining the content of the video based on your assigned sociological theoretical approach. Prepare an introduction that identifies the major social institutions in society and why they are important. Describe each ..
Tax laws are based on several important doctrines : The assignment of income doctrine - states that income must be taxed to the entity that renders the service or owns the capital with respect to which the income is paid. The economic substance doctrine - holds that a transaction that changes the taxp..
What is the present value of the savings : Your company will generate $57,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.8%, what is the present value of the savings?
How much will you have if you make deposits : If you deposit $4,000 at the end of each of the next 20 years into an account paying 9.7 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years?
Fixed rate mortgage to buy a new home : You need a 30-year fixed rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at an APR of 5.25 % for this 360 month loan, However you can afford monthly payments of only $975, so you offer to pay off any remaining..
Callaway prepays insurance on march 31 each year : Depreciation for the current year includes Office Furniture, $1,000 and Equipment, $2,700. Make a compound entry. Callaway prepays insurance on March 31 each year. At December 31, $600 is still prepaid. Callaway pays employees each Friday. The amount..
Which factor does not influence voting practices : Which factor does not influence voting practices? Which term describes the assignment of students to specific education programs and classes on the basis of test scores, previous grades, or perceived ability

Reviews

Write a Review

Financial Management Questions & Answers

  Negligence was the proximate cause of the injury

Michael went deer hunting with Ed. After seeing bushes move, Michael quickly fired his rifle at what he thought was a deer. However, Ed caused the movement in the bushes and was seriously injured by the bullet. Ed survived and later sued Michael on t..

  What is the current dividend per share

Suppose you know that a company’s stock currently sells for $57 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it..

  After-tax profit margin is forecasted

Carter Corporation's sales are expected to increase from $5 million in 2012 to $6 million in 2013, or by 20%. Its assets totaled $4 million at the end of 2012. Carter is at full capacity, so its assets must grow in proportion to projected sales. Unde..

  Based on the minimum value of the contract

Last month when IBM was selling for $86, Dan purchased a call option on IBM with an exercise price of $90 for $2 per option or $200 total. Yesterday, IBM closed at $95. Based on the minimum value of the contract, if Dan sells his call at yesterday's ..

  Waste management-the expense recognition principle

Consult Paragraphs 5-6 of PCAOB Auditing Standard No. 15. As an auditor, what type of evidence would you want to examine to determine whether Waste Management's decision to change the useful life and salvage value of its assets was appropriate under ..

  Compound rates not discount rates

Compound rates, not discount rates, are used in an attempt to:

  What is the present value of this investment

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 7.9 percent, compounded annually. What is the present value of this investment if 7.9 percent per year..

  What is the most you should pay per share

The dividend for Weaver, Inc., is expected to grow at 15 percent for the next 4 years before leveling off at a 5.4 percent rate indefinitely. If the firm just paid a dividend of $1.09 and you require a return of 11 percent on the stock, what is the m..

  Accounting profits are typically

Accounting profits are typically A) greater than economic profits because the former do not take explicit costs into account B) greater than economic because the former do not take implicit costs into account

  What is the yield to maturity on these bonds

The Arnold National Bank has a bond portfolio that consists of bonds with 5 years to maturity and a 9% coupon rate. These bonds are selling in the market for $1126. Coupon payments are made annually on this bond. What is the yield to maturity on thes..

  Return on investment and weighted average cost of capital

Discussion of capital structure of Ford Motor Company, Inc. as well as the calculation of the debt/equity ratio, earnings per share, return on investment and the weighted average cost of capital.

  What is the present value of perpetual stream of cash flows

What is the present value of a perpetual stream of cash flows that pays $40,000 at the end of the year one and then grown at a rate of 4% per year indefinitely? The rate of interest used to discount the cash flows is 13%. the present value of the gro..

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