What is the present value of this cash flow stream

Assignment Help Financial Management

Reference no: EM132073961

You are offered an investment that will pay you $1000, $1200, $1500, $1700, $2000, $2500, $2900, and $3500 over the next eight years (one cash payment per year). You require an 11.5% return on your investment, what is the most you would invest today? (In other words, what is the present value of this cash flow stream?) Round to the nearest cent.

Reference no: EM132073961

Questions Cloud

The CAPM to estimate the cost of common stock : The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is its WACC?

What will be your net profit-loss per apple share : What will be your net profit/loss (“payoff”) per Apple share (disregarding the commissions/fees, and the time value of money) if, on August 18, 2018,

Order entry system-what is the IRR for this project : Your firm is contemplating the purchase of a new $535,000 computer-based order entry system. If the tax rate is 30 percent, what is the IRR for this project?

What is the cost of equity of the firm based on capm model : If the firm uses 50% debt, what is the cost of equity of the firm, based on CAPM model?

What is the present value of this cash flow stream : what is the most you would invest today? what is the present value of this cash flow stream?

Downgrade announcement : ow the Brunswik Lens Model might be used to explain investor's decision about whether to buy or sell shares in JB Hi-Fi following their downgrade announcement

What is the future value of this stream of cash flows : What is the future value of this stream of cash flows?

Calculate the dollar amount impact on operating income : Calculate the dollar amount impact on operating income if the cushions were purchased from the outside supplier Seats4Less):

Improving ROIC than from increasing growth : Which type of business, a software company or an electric utility, would benefit more from improving ROIC than from increasing growth? Why?

User Account

All Pages