Your company will generate 46500 in cash flow each year for

Assignment Help Finance Basics
Reference no: EM13363917

Your company will generate $46,500 in cash flow each year for the next twelve years from a new information database. The computer system needed to set up the database costs $266,000. Assume you can borrow the money to buy the computer system at 9.00 percent annual interest.

1. Evaluate the present value of the generated cash flows.???

2. can you afford the new system?

Reference no: EM13363917

Questions Cloud

The bb corporations has one issue of preferred stock and : the bb corporations has one issue of preferred stock and one issue of common stock outstanding. given the bb
Extruded elements had net income of 25000000 last year and : extruded elements had net income of 25000000 last year and 26250000 this year in line with its long-term earnings
You run a mail-order firm selling upscale clothing you are : you run a mail-order firm selling upscale clothing. you are considering replacing your manual ordering system with a
Warren buffet invested in bofa last year and as part of the : warren buffet invested in bofa last year and as part of the deal received 700 million warrants with a strike price of
Your company will generate 46500 in cash flow each year for : your company will generate 46500 in cash flow each year for the next twelve years from a new information database. the
Surfin bubba surfboard shop is currently selling for 3425 a : surfin bubba surfboard shop is currently selling for 34.25 a share with a current dividend of 1.00. it is estimated
A portfolio has three investments - 300 shares of : a portfolio has three investments - 300 shares of commonwealth bank cba 300 shares of woolworths wow and 100 shares of
Tesca works see questions below1 how much importance should : tesca works see questions below1. how much importance should be given to the energy cost situation?2. what is the
Question what causes cancer why is finding a cure so : question what causes cancer? why is finding a cure so difficult? why do certain drugs work for some people but not

Reviews

Write a Review

Finance Basics Questions & Answers

  What price should they charge for these bonds

ABC wants to issue 12-year, zero coupon bonds that yield 8.73 percent. What price should they charge for these bonds if they have a par value of $1000? That is solve for PV. Assume compounding.

  What is the primary concern an investor should conside

when using the DDM to make an investment move, what is the primary concern an investor should conside at decision time?

  What is the present value of a perpetuity

What is the present value of a perpetuity of $100 given a discount rate of 5%?

  Computation of equivalent annual cash flows

Computation of Equivalent Annual cash flows where Negative amount should be indicated by a minus sign

  What should nominal rate of return be

If the real return on U.S. Treasury bills is 14 percent while the rate of expected inflation is anticipated to be 8 percent, then what should nominal rate of return be?

  How much money should she invest in each stock

Suppose that the expected returns of Jazz, Classical, and Rock are 10%, 6%, and 12%, respectively. An investor who has $10,000 wants to achieve an expected return of 40%. How much money should she invest in each stock and the risk-free security?

  Find the number of days to pay suppliers

Pennington's has yearly sales of $1.46 million. The cost of goods sold is equal to 78% of sales. The company has an average accounts receivable balance of $148,900 & an average accounts payable balance of $163,500.

  Find the market value of assets

Beckman Engineering and Associates has 25 million shares outstanding. Shares are trading at $8. Beckman Engineering and Associates management plans to raise $60 million to by issuing debt to repurchase shares.

  What is the current value of chambers common stock

Chambers corp's ROE is 18%. their dividend payout ration is 80%. the last dividend just paid was $2.20. if dividends are expected to grow by the companys internal growth rate indefinitely, what is the current value of chambers common stock if its ..

  Determining the annuity amount to fund retirement

You wish to retire after 18 years, at which time you desire to have accumulated enough money to receive an annuity of $14,000 a year for 20 years of retirement. What annual contributions to retirement fund will let you to receive the $14,000 annual..

  Increase in employees versus production

The manager of Joe's Box Corporation conducts a study and notes his fifteen workers produce approximately 8,000 boxes per week. She assumes if she can employ thirty workers,

  What will rockwoods cost of equity capital be

If Rockwood finances their expansion by issuing new stock, what will Rockwood's cost of equity capital be?

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