What is the worth of expected cash flow stream today

Assignment Help Financial Management
Reference no: EM131064002

You expect to receive $85,000 in net cash payments at the end of each year for the next 7 years. A) Draw timeline of receipts with an opportunity cost of 6.5% B) What is the worth of expected cash flow stream today? C) If today you had to pay $450,000 to get the stream of payments would you and why? D) If your opportunity cost was 10% would you pay $450,000 for the stream of cash flows? why? E) If you pay the $450,000 stream of cash flows what rate do you expect to earn? F) How long to the nearest two digit fraction of time does it take you to get your money back? G) What rate of return do you expect to earn per dollar invested? Show all work please

Reference no: EM131064002

Questions Cloud

Bank certificate of deposit : In your Freshman year your uncle deposits $10,000 into a 4-year bank certificate of deposit (CD) that pays 5% annual interest. You will receive the money in the account (including the accumulated interest) if you graduate with honors. How much will t..
Why has southwests business model and strategies : Why has Southwest's business model and strategies changed over time - in what ways is Southwest trying to improve its competitive advantage in 2011?
Compounding and discounting cash flows : Compounding and Discounting cash flows. Your employer promises you a bonus of $10,000 in 3 years. If your discount rate is 6%; what is the present value of this bonus?
Assignment - essay on an issue in lst : LING337: Assignment. Assignment - Essay on an issue in LST. The use of visuals in EITHER pedagogic science OR popular science OR professional science
What is the worth of expected cash flow stream today : You expect to receive $85,000 in net cash payments at the end of each year for the next 7 years.  Draw timeline of receipts with an opportunity cost of 6.5%. What is the worth of expected cash flow stream today?
Which payer and what type of change in volumes : Which payer and what type of change in volumes?
Define the nature of probability distributions : Define the nature of probability distributions and the two types associated with them? Discuss the importance of an investment advisor being able to explain to his or her client why a mutual fund characterized by a very low standard deviation could b..
How 3d printer is going to add to the traditional look : How my work is going to be a sample of mixture of tradition and recycling Technology and How 3d printer is going to add to the traditional look.
Use minimum inventory level : Based on the following information, how do I find Minimum Inventory level? I was told to use Minimum Inventory level = (Demand During Lead Time+ Safety Stock) ? Quantity on hand: 140 Product Cost: $2.00 Sale Price: $3.50 Demand: 25 Maximum Inventory:..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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