You expect the following cash flows from a new business you

Assignment Help Finance Basics
Reference no: EM13569570

You expect the following cash flows from a new business:

Year Cash Flow

1 $5,000.00
2 $8,000.00
3 $1,200.00
4 $1,400.00

You can borrow at 11% to start this business. What is the current value of the expected cash flow stream?

Reference no: EM13569570

Questions Cloud

Given the following scenario on what date would you : given the following scenario on what date would you recognize revenue if preparing financials under u.s. gaap? would
Madden electric began operations in 2010 and provides a one : madden electric began operations in 2010 and provides a one year warranty on the products it sells. they estimate that
Define the idea of a just war can any war be just in the : read the article a just or holy war of independence? by john d. carlson and answer the following questionsdefine the
It costs 1 to store a barrel of oil for one year if oil has : the price of oil is 100 per barrel. oil prices are expected to grow at 4 per year. the one-year risk-free rate of
You expect the following cash flows from a new business you : you expect the following cash flows from a new businessyear cash flow1 5000.002 8000.003 1200.004 1400.00you can borrow
Find a journal article online about absorption andor : find a journal article online about absorption andor variable costing. in the subject line of your post include the
You know that the firms 12 year maturity 975 percent : you are analyzing the after tax cost of debt for a firm. you know that the firms 12 year maturity 9.75 percent
Company a and company b are identical except that company : company a and company b are identical except that company as costs are mostly variable whereas company bs costs are
The risk-free interest rate for a half year maturity is 6 : a stock has a current price of 20. the risk-free interest rate for a half year maturity is 6 and the dividend rate is

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss the roth ira

Discuss the Roth IRA, stating who can contribute and the advantages or disadvantages.

  How much will be your retirement payment

What factor(s) can you change to reduce your annual deposit while improving your annual retirement benefit?

  What is the degree of pass through by sony of japan

currently the spot exchange rate is 85/$ and Sony is charging $179 per PSP player. What is the degree of pass through by Sony of Japan on their DVD players?

  What is aei time-interest-earned ratio

AEI Incorporated has $5 billion in assets, and its tax rate 40%. Its basic earning power (BEP) ration is 10%, and its return on assets (ROA) is 5%. What is AEI's time-interest-earned (TIE) ratio?

  The required rate of return is 10%.

The following bonds have a par value of $1,000 and the required rate of return is 10%.

  Discuss the purpose of an audit in the public sector

What is the purpose of an audit in the public sector? Why is public financial management important?

  Develop a new computer game

What will the cash flows for this project  - develop a new computer game. The firm is planning to spend $200,000 on a machine to produce the new game.

  How can we measure a nations degree of economic

a. how can we measure a nations degree of economic interdependence with the rest of the world?b. why does the u.s. rely

  Calculate the tax liability of the two companies

A uses debt and has interest expense of $10 million, but B has no debt and no interest expense. Calculate the tax liability of the two companies.

  Validity is more critical to measurement than reliability a

1. how does technological advancement affect the ability to collect data? provide examples. does this advancement

  New stock can be sold to the public at the current price

weaver chocolate co. expects to earn 3.50 per share during the current year its expected dividend payout ratio is 65

  Swaps-arbitrage-interest rate swaps-hedging

Discuss why an interest rate swap is a useful tool for active liability management and for hedging against interest rate risk.

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