What would be the net present value of this investment

Assignment Help Financial Management

Reference no: EM131970406

A limited partnership investment costs $47,000 and does not pay anything to the investor for the first two years, but then expects to pay $26,000 at the end of Year 3, $23,000 at the end of Year 4, and $50,000 at the end of Year 5.

Assuming that the partnership actually pays those cash flows, what would be the net present value of this investment if the interest rate was 12.2%?

Reference no: EM131970406

Questions Cloud

What will uptons capital balance be after admission : Reed, Sharp, and Tucker were partners with capital account balances of $80,000. What will Upton's Capital balance be after admission into the partnership?

What role can play in assuring best outcomes for adolescents : How might potential reactions to an adolescent's questioning of their sexual identity, or gender role, impact their social environment.

Compute ending inventory by conventional retail inventory : The records of Headland's Boutique report the following data for the month of April. Compute the ending inventory by the conventional retail inventory method.

True population mean watermelon weight : Assume the population standard deviation is 4.9 ounces. Based on this, construct a 90% confidence interval for the true population mean watermelon weight.

What would be the net present value of this investment : Assuming that the partnership actually pays those cash flows, what would be the net present value of this investment if the interest rate was 12.2%?

Population proportion of adults with children : In a sample of 440 adults, 268 had children. Construct a 99% confidence interval for the true population proportion of adults with children.

What are the companys daily fixed costs : What are the company's daily fixed costs? What is the marginal cost per bicycle? What is the cost of producing 20 bicycles?

Change in customer purchasing policies : Offcials of the company believe that the length of time has increased recently, either due to a change in the workforce or due to a change in customer

How the information works in the production of music : In this BBC video, English composer Howard Goodall demonstrates how the information you are learning regarding musical harmony works in the production of music.

User Account

All Pages