What is the present worth the given investment

Assignment Help Finance Basics

Reference no: EM13897937

Uncle Wilbur's trout ranch is now for sale for $30,000. Annual property taxes, maintenance, supplies, and so on are estimated to continue to be $3,000/year. Revenues for the ranch are expected to be $10,000 next year and then decline by $400 per year through the tenth year. If you bought the ranch, you would plan to keep it for only five years and at that time sell it for the value of the land, which is $15,000. If your desired MARR is 12% per year. What is the present worth the investment?

Reference no: EM13897937

Questions Cloud

What single payment today would settle : Loan payments of $1,000 that was due 3 MONTHS AGO (and was not paid) and $1,500 due in 6 MONTHS. What single payment today would settle the debt, if money is worth 7% compounded quarterly?

Carbon dioxide is a criteria pollutant : Explain the misconception below with a short essay-Carbon dioxide is a criteria pollutant.

Determine impeller diameter : A lime-soda softening plant treats a flow of 150 MGD, and the water has 86 mg/l CO2. The commercial grade of quicklime has a purity of 85% and the soda ash has a purity of 95%. Determine: The pounds of quicklime and soda ash required per million ga..

What is the probability that the option will be exercised? : What is the probability that the option will be exercised?

What is the present worth the given investment : Uncle Wilbur's trout ranch is now for sale for $30,000. Annual property taxes, maintenance, supplies, and so on are estimated to continue to be $3,000/year. What is the present worth the investment?

What sort of transactions should mary undertake in order : What sort of transactions should Mary undertake in order to hedge

Prepare a cash budget for the months of january and february : Prepare a cash budget for the months of January, February, and March. Determine the amount of additional bank borrowings necessary to maintain a cash balance of $50,000 at all times.

What is the npv of the given investment : Rocky Mountain's tax rate is 34 percent, and its opportunity cost of capital is 10 percent. What is the NPV of this investment?

Describe the image receptor response curve for cr : General information about the use of intensifying screens in radiology, and how films intended for use with intensifying screens differ from non-screen films. Describe the image receptor response curve for CR

User Account

All Pages