Write the flow rate equation

Assignment Help Financial Management
Reference no: EM131022168

For the year ending December 31, 2008, General Electric's revenue was $182.52 billion. Assume that the revenue increases by 5% per year and that General Electric will (continuously) invest 10% of its revenues each year at an APR of 4.7% compounded continuously for a period of 9 years beginning at the end of December of 2008.† (a) Write the flow rate equation. R(t) = c billion dollars per year (b) What is the present value (in December, 2008) of this 9-year investment? (Round your answer to three decimal places.) $ billion

Reference no: EM131022168

Questions Cloud

Why are as-cast structures anisotropic : Why are as-cast structures anisotropic? What is the effect of anisotropicstructures on the properties of materials? How can the effects of anisotropybe reduced or removed from as-cast components?
Western company is preparing a cash budget for june : As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:Repay $5,700.Borrow $5,400.Borrow $4,300.Borrow $10,000.Repay $4,300.
What extent fdicia reduced financial market : Discuss how and to what extent FDICIA reduced financial market systemic risk. Assess the extent to which systemic risk still exists.
Compute the total budgeted overhead that would appear : Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.$349,000.$153,000.$147,000.$306,375.$300,000.
Write the flow rate equation : For the year ending December 31, 2008, General Electric's revenue was $182.52 billion. Assume that the revenue increases by 5% per year and that General Electric will (continuously) invest 10% of its revenues each year at an APR of 4.7% compounded co..
Calculate the debt-to-equity ratio of the bank : Consider the following balance sheet of a bank. If the interest rate rises from 10% to 15%, what will happen to bank profits using gap analysis - Calculate the debt-to-equity ratio of the bank.
A july sales forecast projects : The management forecasts 15% growth in sales each month. Total July sales are anticipated to be:$64,414.$68,266.$53,500.$79,180.$66,340.
What is the annual worth of the overhead costs : The overhead costs in a highly automated factory are expected to increase at an annual compound rate of 10% for the next 7 years. The overhead cost at the end of the first year is $200,000. What is the annual worth of the overhead costs for the 7-yea..
Appropriate starting material : 1) Complete the reactions given below with appropriate starting material, reagent and product. a)     ? Alkyl halide ?-------> ?alkene-------->   ? 1-butyl-1-cyclopentanol b) ? alkene -------->2-pentanol

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the bonds macaulays duration

You own a corporate bond that carries a 5.8 percent coupon rate and pays $ 10,000 at maturity in exactly two years. The current market yield on the bond is 6.1 percent. Coupon interest is paid semiannually and the market price is $ 9,944.32. a. Calcu..

  Should the investment be undertaken

An investment requires an outlay of $100,000 today. Cash inflows from the investment are expected to be $40,000 per year at the end of years 4, 5, 6, 7, and 8. If you require a 20 percent rate of return on this type of investment, should the investme..

  Increase its fixed assets

North Construction had $850 million of sales last year, and it had $425 million of fixed assets that were used at only 60% of capacity. What is the maximum sales growth rate North could achieve before it had to increase its fixed assets?

  What is effective annual interest rate charged on such loan

Some home loans involve "points," which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if 0.5 point is charged on a $100,000 loan, the loan repayment schedule is calcul..

  Shares of common stock outstanding

Titan Mining Corporation has 9 million shares of common stock outstanding, ½ million shares of preferred stock paying $7 dividends and 120,000 8.5% semiannual bonds outstanding , par value $1000 each. The market risk premium is 10%, T-bills are yield..

  Reasonable estimate for its after-tax cost of debt

Bedrick Co. Can borrow at an interest rate of 7.3% for a period of eight years. Its marginal federal-plus state tax rate is 40%. What is Bedrick's after-tax cost of debt? Bedrick Co. has an outstanding 10-year non-callable Bond with a face value of $..

  End-of-year balance for net operating working capital

The 2015 income statement for Duffy’s Pest Control shows that depreciation expense was $205 million, EBIT was $520 million, and the tax rate was 30 percent. Duffy’s free cash flow for the year was $433 million. Calculate the end-of-year balance for n..

  What interest rate was paid on the construction bonds

The Golden Gate Bridge in San Francisco was financed with construction bonds sold for $34 million in 1931. These were 40-year bonds, and the $34 million principal plus almost $38 million in interest were repaid in total in 1971. Assume the constructi..

  Depreciation is straight-line to zero over life of project

We are evaluating a project that costs $1034668, has a seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 43281 units per year. What is the NPV of the proj..

  After-tax profit margin is forecasted

Broussard Skateboard's sales are expected to increase by 20% from $8.6 million in 2013 to $10.32 million in 2014. Its assets totalled $5 million at the end of 2013. Baxter is already at full capacity, so its assets must grow at the same rate as proje..

  Whereas the risk-free rate of return

The beta of M Simon Inc., stock is 1.7, whereas the risk-free rate of return is 0.08. If the expected return on the market is 0.14, then what is the expected return on M Simon Inc?

  Acquired knowledge of time value of money

Give an example of how your newly acquired knowledge of Time Value of Money (TVM) calculations could better prepare you for the next negotiation or big-ticket purchase in your life.

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