Ambrin Corp. expects to receive $6,000 per year for 14 years and $7,500 per year for the next 14 years. What is the present value of this 28 year cash flow? Use an 12% discount rate. Use Appendix D. (Round "PV Factor" to 3 decimal places. Round your Intermedlate calculations to the nearest dollar value.) Multiple Cholce $89,478 $49,959 none of these $59,901

Ambrin Corp. expects to receive $6,000 per year for 14 years and $7,500 per year for the next 14 years. What is the present value of this 28 year cash flow? Use an 12% discount rate. Use Appendix D. (Round "PV Factor" to 3 decimal places. Round your Intermedlate calculations to the nearest dollar value.) Multiple Cholce $89,478 $49,959 none of these $59,901

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

What discount rate would make you indifferent between recieving $3515.00 per year forever and $5920.00 per year for 30.00 years? Assume the first payment of both cash flow streams occurs in one year. (Answer format: percentage, round to two decimal places)
None
Parts A, B, and C have been done. Need more or the rest please.
Red Zone Corporation recently purchased a new machine for $339,0 13.20. The new equipment has a useful life of 10 years. Net cash flows will be $60,000 per year, end of year payments. What is the internal rate of return? Question 1Select one: a. 12 percent b. 16 percent c. 14 percent d. 10 percent e. 18 percent
Gary King will deposit $27500 into an account today that earns 13% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years? Type of Cash Flow Periods Interest Rate Factor PV of $1 5 13% 0.5428 FV of $1 5 13% 1.8424 PV ordinary annuity 5 13% 3.5172 FV ordinary annuity 5 13% 6.4803 PV annuity due 5 13% 3.9744 $25333 $50666 $14927 $29854
Sagar
ofice eBook Project L costs $45,000, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 8%. What is the project's discounted payback? Do not round intermediate calculations. Round your answer to two decimal places. years
כן Answer: Find the present value of the following cash flows: 4,000 in 3 years and 7,000 in 5 years. The interest rate is 7.9% p.a. compounded quarterly for the first 2 years and 5.5% p.a. compounded half-yearly thereafter. (Correct your answer to the nearest cent without any unit (No need to put "$"). Do not use in your answer. e.g. 123456.78))
MKM International is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machines are in consideration. Machine 1 costs $400,000, but yields a 15 percent savings over the current machine used. Machine 2 costs $950,000, but yields a 25 percent savings over the current machine used. In order to meet demand, the following forecasted cost information for the current machine is also provided. Year 1 2 23 3 4 5 Project Cost 1,000,000 1,350,000 1,400,000 1,450,000 2,500,000 a. Based on the NPV of the cash flows for these 5 years, which machine should MKM International purchase? Assume a discount rate of 11 percent. Assuming a discount rate of 11 percent, MKM International should purchase NPV of machine 1 is $ nearest whole number.) b. If MKM International lowered its required discount rate to 9 percent, what machine would it purchase? because the and the NPV of machine 2 is $. (Enter your responses rounded to the Assuming a discount rate of 9 percent, MKM…
For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The interest rate is 6.00% per year. (Round the final answer to three decimal places.) Cash flow, $ Year 0 1 2 3 The value of G is $ 225.0 225.0+ G 225.0+2G Year 4 5 16 Cash flow, $ 225.0+36 225.0+4G 225.0+5G 225.0+66
XMT Corp. expects to receive AED 8 million per year for 8 years and AED 12 million per year for the next 10 years. What is the present value of this 18 year cash flow? Use a 5% discount rate.
What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of year one and then grows at a rate of 6% per year indefinitely? The rate of interest used to discount the cash flows is 10%. The present value of the growing perpetuity is $enter your response here. (Round to the nearest cent.)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS