A firm after -tax operating income ( after-tax EBIT)$90,000 in 2018. The value of depreciation is $8000 in 2018. Operating working capital increased by $20,000, and the firm purchased $30,000 of assets. The firm's free cash flow is

Q: Find the present worth of all the cash disbursements using gradient interest formulas if money is…

A: First payment=P5000Gradient=P1000Number of payments=4Interest rate=15%

Q: Mike Derr Company expects to earn 12% per year on an Investment that will pay $616,000 six years…

A: Answer :Present value=?=?[1/(1+ rate) ^time]Future value = $616,000Rate = 8%Time = 7  yearsPresent…

Q: Determine the present value of a financial instrument that pays $18,500 in 10 years if instruments…

A: Present Value: It refers to the real value or worth of any asset or project. It determines the fair…

Q: An investor receives $1,050 in 6 months in return for an investment of $1,000 now. What is the…

A: Compound = ContinuousFuture Value = fv = $1050Time = t = 6 / 12 = 0.5 YearsPresent Value = pv =…

Q: Assume you made an investment today for $27,000 and sold it 15 years later for $75,000. What is the…

A: In this question we need to calculate CAGR i.e. Compound Annual Growth rate from given details:…

Q: You are given the following information for a firm: EBIT x (1-T) this period Depreciation Net…

A: The discounted cash flow valuation model is a valuation metric that takes into account the cash…

Q: An investment account offers a 12% annual return. If $50,000 is placed in the account for two years,…

A: Compound Interest is the interest earned on the interests previously earned.It is a method of…

Q: Nominal annual interest rates are 7.3%. If a businessperson has an opportunity to invest $40,000…

A: Option 1: If 40,000 invested at 7.3% for 5 years: Future Value = Present Value * ( 1 + Interest…

Q: Congratulations!!! You just landed your first job as a financial analyst for RB International. Your…

A: Present value refers to the current worth of the future expected stream of cash flows.

Q: r expected return on this investment?

A: Expected return on investment refers to the rate of return that an investor is expecting on an…

Q: If the current rate of interest is 8% APR, then the future value of an investment that pays $250 per…

A:

Q: A private equity firm is aiming to buy a company. Under private  equity ownership, the company will…

A: IRR is internal rate of return is discount rate where present value of cash flow is equivalent to…

Q: makes deposit to a shor Inve n 1% !), what will the account balance be af

A: Simple Interest = Principal (initial deposit) * Interest Rate * TimeWhere:Principal = initial…

Q: A firm will report annual Net Income of $50 and depreciation expense of $20 forever in the future.…

A: Tax shield refers to the reduction of tax liability due to tax allowable expenses. Tax allowable…

Q: Holly plc expects to receive annual cash flows of £75,000 per year in current price terms for a…

A: Since the discount rate is given in nominal terms and the cash flows are given in real terms, we can…

Q: Suppose you pay $9,700 for a $10,000 par Treasury bill maturing in three months. What is the holding…

A: Holding period return is the return % that an investment generates over the period of time the asset…

Q: A firm is considering an investment which will provide an annual cash inflow of $10,000 for the next…

A: The Present Value   is the current value of a future amount i.e.,   it is the amount to be invested…

Q: Quilts R Us (QRU) is considering an investment in a new patterning attachment with the cash flow…

A: The present value is the worth of money that has to be paid or received in the future.

Q: You have invested $10,000 in this ETF at the beginning of year 2020 and its year-end value was…

A: Rate of return refers to the return earned on an investment or asset over a fixed period of time.…

Q: MUST USE EXCEL FORMULA! NOT ALGEBRAICALLY!

A: Present Value of Cash Flows- It can be calculated by discounting the given cash flow at appropriate…

Q: Time value of money practice problems.  How would you solve these using a financial calculator?…

A: The computation of the Future value as follows:

Q: QUESTION 2 An investor invests $40,000 today, in exchange for continuous cash flows of $15,000 per…

A: 1. Payback Period is the length of time required to recover the cost of Investment. Discounted…

Q: Assume that the interest rate is 8.5% per year and you expect to receive the following stream of…

A: Net present value is a capital budgeting techniques help in decision making on the basis of future…

Q: An investment with an initial cost of $15,000 produces cash flows of $5,000 annually for 5 years. If…

A: To calculate the discounted payback period, we need to discount the annual cash flows and determine…