Question: 7 . Five months from today your company will begin receiving cash flows of $ 1 0 , 0 0 0 paid every 8 months.

7. Five months from today your company will begin receiving cash flows of $10,000 paid every 8 months. The last of these $10,000 flows will occur 69 months from today. Calculate the present value (value today) of these cash flows. The discount rate provided to you by your accountant is 5% expressed as a rate per year, compounded quarterly.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1. Assume the effective annual interest rate is 11%. Calculate the present value of an annuity of 12 annual payments where the first payment is in 4 years and each payment is $6,000. 2. Assume the...

Q:

4. When you retire, you would like to have a monthly pension of $8,000 per month for 30 years. Assume you have just had your 25th birthday and you intend to contribute monthly to your retirement fund...

Q:

Five months from today your company will begin receiving cash flows of $10,000 paid every eight months. The last of these $10,000 flows will occur 69 months from today. Calculate the present value...

Q:

Five months from today your company will begin receiving cash flows of $10,000 paid every eight months. The last of these $10,000 flows will occur 69 months from today. Calculate the present value...

Q:

1. When you retire, you would like to have a monthly pension of $8,000 per month for 30 years. Assume you have just had your 25th birthday and you intend to contribute monthly to your retirement fund...

Q:

1. When you retire, you would like to have a monthly pension of $8,000 per month for 30 years. Assume you have just had your 25th birthday and you intend to contribute monthly to your retirement fund...

Q:

I need your help with this: Can you please quote from the attached chapters / resource if possible? Corporations often use different costs of capital for different operating divisions. Using an...

Q:

ABC Corp. is considering two alternative projects. Project A requires an up-front expenditure of $20,000 today, has an expected life of five years, and generates cash flows of $3,500 every six months...

Q:

1 In 1996 (twenty five years ago) a family insurance policy cost ABC Company $3,500 per year. In 2021, that same family insurance policy cost ABC Company $27,600. Calculate the growth rate over this...

Q:

Question 1 (15 marks) a) Asset X generates a perpetual stream of cash flows of $100,000 every 3 months. The relevant interest rate is 12%, compounded quarterly. How much would you pay to buy Asset X...

Q:

Using the chapter 24 Case File as an example, construct a paragraph illustrating how a consortium of microbes is often required for the process of bioremediation.

Q:

Suppose that in country X , university students get a monthly welfare support of AC300 as a support for enrollment into tertiary education. In addition to this welfare support, students are allowed...

Q:

Angry Birds is a highly popular video game created by Finnish company Rovio in December 2009 for the iPhone. Since then, over 12 million customers have paid $0.99 each to download the game from...

Q:

A random sample of 43 biology students in a science program are selected for a study. Of those selected, only 27 passed the mid term exam. At the 5% significance level, is there sufficient evidence...

Q:

recognise typical interviewer errors and explain how to avoid them

Q:

identify and evaluate a range of recruitment and selection methods

Q:

understand the role of competencies and a competency framework