What is the present value of these cash returns

Assignment Help Finance Basics
Reference no: EM13255517

The Delp Computer Company has developed a new line of desktop computers. It is estimated that cash return generated by the new product line will be $800,000 per year for the next five years, and then $500,000 per year for 3 years after that(the cash returns occur at the end of each year). At a 9% interest rate, what is the present value of these cash returns?

Reference no: EM13255517

Questions Cloud

Define what percent error results from the assumption : What percent error results from the assumption that the density of water is 1.000 g/ml at 20 C
Find he longest wavelength of light : What is the longest wavelength of light capable of ionizing a hydrogen atom in the n = 2 state
Design the controller and estimator for unit step response : design the controller and estimator so that the closed-loop unit step response to a command input has a rise time tr
Compute the mean, median and first quartile : Compute the mean, median, first quartile, third quartile, range, inter-quartile range for "Age" and construct a box plot and determine whether the data is skewed, if so, how?
What is the present value of these cash returns : At a 9% interest rate, what is the present value of these cash returns?
What is the mass on the end of the string : A string is clamped at one end and the other end rests on a light, frictionless pulley with a mass hanging below it to provide a tension. What is the mass on the end of the string
Explain what percent error results from the assumption : Grams and centimeters in the metric system have been defined so that the density of water at 3.98 C is exactly 1. At 20 C, the density of water is 0.9982 g/ml. What percent error results from the assumption that the density of water is 1.000 g/ml ..
What is the balance of recievables at the end of june : February sales were $60,000 and March sales were $70,000. In the past bad debt percentage has been 0 and is expected to continue.
Calculate the radius of curvature of the lower surface : A Newton's ring apparatus is to be used to determine the radius of curvature of a lens (see the figure below and Problem 75). The radii of the nth and (n+16)th bright rings are measured and found to be 0.129 and 0.317 cm

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine daily net revenue

Stanley Furniture produces two types of china cabinets, First Provincial and Deluxe Modern. Each cabinet goes through three departments: carpentry, painting and finishing.

  Function of the foreign exchange market

What is the function of the foreign exchange market? Who are the market participants? What is the difference between the spot and forward markets?

  Explain concept of time value of money

You have been asked by the local elementary school to come and explain the concept of the time value of money. Discuss this topic as you might explain it to an 8-year old child. What would you say?

  Return characteristics of a portfolio

Define the following and give an example: Risk - Return - Risk Preferences  and describe in terms of correlation and diversification the risk and return characteristics of a portfolio.

  Examine financial statements-prepare cash flow analysis

Given this information, find the NPV, MIRR, and which year the present value cash flows become positive. I need this in an excel spreadsheet as well as 5 slides w/ notes

  Find the capital structure components and computation

Capital Structure components and computation with before and after tax cost of capital - Theory and What sources of capital should be included when you estimate Coleman's WACC?

  Relationship between inventory turnover and purchasing needs

Discuss and explain to me the relationship between inventory turnover and purchasing needs and determine the advantage and disadvantage of level production schedules in firms with cyclical sales?

  How would you assess the value of this liability

Explain what questions would you raise with the CEO over the firm's litigation liability - How would you assess whether the firm should record a liability for this risk, and if so, how would you assess the value of this liability?

  Computation of value of ibm

Examine the structure and activities in your reference organization and identify two projects or events that required an investment. One should be current and the other non-current.

  Select the best option

Assume it was announced this morning that the winner of Powerball lottery will receive a Grand Prize of $73.7 million.

  Prepare journal entry to record sales

Steve Smith, owner of Steve's Bowling Alley, generated $30,000 in sales for the month of January. "Regular" customers are allowed to play on account.

  Computation the expected amount of disposable income

Computation the expected amount of disposable income of project and what is the expected amount of disposable income the landlord will have facing this risky situation? Is this a fair gamble.

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