Will that price be feasible for the buyer

Assignment Help Finance Basics
Reference no: EM133559897

Question: Company M&N is expected to generate net cash flows of $18,000.00 in the first year and $21,000.00 during each of the next 6 years, the company can be sold for $160,000.00 after 8 years. The owners of the company would like to be able to earn 12% on their investment in the business.

Will that price be feasible for the buyer? Calculate the value of the company using the discounted cash flow method and expand your answer.

Reference no: EM133559897

Questions Cloud

Why companies wouldnt pay dividends : Why does financial hardship become one of the most significant issues regarding why companies wouldn't pay dividends?
What are signposts of change for fall prevention initiative : What are the "signposts" of change for fall prevention initiative changes in a hospital setting?
How do you define cultural diversity : How do you define cultural diversity? Do you think the way you define cultural diversity is the same or different than how others might define it?
What is the average rate of return on your investment : At your retirement age of 67, the future value of this $10,000 investment is $350,000.00. What is the average rate of return on your investment
Will that price be feasible for the buyer : Will that price be feasible for the buyer? Calculate the value of the company using the discounted cash flow method and expand your answer.
List three responsibilities of employees : Employers and employees have differing responsibilities under the Work Health and Safety Legislation. b) List three responsibilities of employees.
What is the role of the nurse practitioner : What is the role of the Nurse Practitioner in the use of psychotropic medications? What is so important the knowledge of these class of medications?
What are elements necessary to create a high-reliability : What are elements necessary to create a high-reliability organization (HRO). How are HROs related to safety and quality? What approach can the nurse
Should use integrity-personality assessments to recruiting : Do you think employers should use integrity and personality assessments to make recruiting and promotion decisions?

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the company weighted average cost of capital

The company's cost of capital is the cost of debt is 4.61, the cost of common equity is 5.23, and cost of preferred equity is 6.67. What is the company's weighted average cost of capital?

  What is the present value of a bond that pays 340 one year

what is the present value of a bond that pays 340 one year from now and 5340 two years from now at a constant interest

  Expected level of wealth for the next year

You've chosen to invest your whole fortune of $200,000 in a cabin near Calgary, Ontario. You believe that there is a 2% probability that your cottage will be fl

  Calculating present value of annuities

Peter Lynchpin wants to sell you an investment contract that pays equal $12000 amounts at the end of each of the next 20 years.

  What is the nal-carmichael cleaners

Carmichael Cleaners needs a new steam finishing machine that costs $100,000. The company is evaluating whether it should lease or purchase the machine.

  Examine the feasibility of a new manufacturing plant

Examine the feasibility of a new manufacturing plant

  It had 20 million of interest expense and itscorporate tax

pearson brothers recentlyreported an ebitda of 7.5 million and net income of 1.8million.nbspit had 2.0 million of

  What is the effective interest cost of this loan

Set up the amortization schedule for a 5-year, $1 million, 9 percent term loan that requires equal annual end-of-year payments plus interest on the unamortized loan balance. What is the effective interest cost of this loan?

  Consider a portfolio comprised of asset p and asset q the

consider a portfolio comprised of asset p and asset q. the expected return on asset p is 10 and the standard deviation

  What would the annual yield to maturity be on the bond

What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity round

  Calculate the present worth of the inheritance

Peter inherited $80000 from his parents, but due to terms and conditions he can only drawdown as follows.

  Nbspon august 1 kidd trading received an order from a

nbspon august 1 kidd trading received an order from a british customer for pound1000000 to be paid on receipt of the

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