What is the present value of these cash flows

Assignment Help Financial Management
Reference no: EM132027558

you are thinking of buying a miniature golf course. It is expected to generate cash flows of $40,000 per year in years 1 through 4, and 50,000 per year in years 5 through 8.

What is the present value of these cash flows with an interest rate of 4% annually?

Reference no: EM132027558

Questions Cloud

What is the effective annual cost of the trade credit : What is the effective, or equivalent, annual cost of the trade credit? Round your answers to two decimal places.
Restate the givennet cash flows in real terms : Assume a 22%nominal rate and 8% expected inflation. NPV should be unchanged at +1,091, or $1,091,000.
What is the yield to call if the bond is called : What is the yield to call if the bond is called at seven years (state as an APR)?
Describe netflixs long-tail : What happened and why? In your own words, describe Netflix's long-tail and explain why it is/was an advantage.
What is the present value of these cash flows : What is the present value of these cash flows with an interest rate of 4% annually?
How much are you willing to pay for this stock today : The stock just paid a dividend of $0.8. How much are you willing to pay for this stock today if you expect the dividends to grow at a constant annual rate of 2%
Determine the most reasonable price for this bond : The current financial situation of the company, however, is considered quite risky. So, you want to have 15% return on your investment.
How much value will be created or destroyed : If you are required to earn 10% rate of return on this purchase, will you create value or destroy value by buying this warehouse for $800,000 today?
What do you think of the advantage a large firm : What do you think of the advantage a large firm (for example Wal-Mart) has over a small firm in terms of both working capital management .

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the trade discount rate royal received

Royal Furniture bought a sofa for $960. The sofa had a $1,560 list price. What was the trade discount rate Royal received?

  What is the bond''s yield to maturity and yield to call

General Electric has just issued a callable (at par) ten-year 8% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $104 and a face value of $104. What ..

  Book value of long-term debt at schlumberger

For the most recent fiscal year, book value of long-term debt at Schlumberger was $11352 million.

  What is the significance of the flood control act of 1934

What are some of the first examples of emergency management?- What is the significance of the Flood Control Act of 1934?

  What combination of european option can company undertake

What combination of european option can the company undertake? and explain why you chose the combination.

  How can put options be used to provide you with insurance

How can put options be used to provide you with insurance against a decline in the value of your holding over the next 1-year.

  What is value of this bond when there are exactly four years

Junkman's Warehouse and Storage Company has an unusual bond outstanding with exactly 10 years remaining until maturity and a face value of $1,000. The bond is unusual because the annual coupon payments remaining are $50 for the next five years and $1..

  Instead of paying the amount on the spot

In the year 2000, the New York Mets (a professional baseball team) owed Bobby Bonilla (a baseball player) $5.9 million. Instead of paying the amount on the spot, the Mets and Bonilla agreed to defer his compensation in the following way: starting in ..

  At what age are your savings expected to run out

Determine how your current retirement strategy will provide for retirement income.At what age are your savings expected to run out?

  Established pattern of increasing its dividends

The common stock of Auto Deliveries sells for $26.96 a share. The stock is expected to pay $1.90 per share next year when the annual dividend is distributed. Auto Deliveries has established a pattern of increasing its dividends by 4.7 percent annuall..

  Bonds should have the highest market value

Which of the following bonds should have the highest market value?

  Tax basis in stock after the distribution

Jayhawk Company reports current E&P of $317,500 and accumulated E&P of negative $295,000. Jayhawk distributed $480,000 to its sole shareholder, Christine Rock, on the last day of the year. Christine’s tax basis in her Jayhawk stock is $99,250. What i..

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