Question: Hi I have a question about calculating the present value of cash flow with a discount rate with 10 years cash flow of a property.

I have a question about calculating the present value of cash flow with a discount rate with 10 years cash flow of a property.

And at the end period, we need to sell this property. So, do I need to add the resale price to the cash flow to calculate the present value of the cash flow?

please explain, better to provide an example.

THX!!

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!

1a) Fully state the main advantage of forecasting the inflation rate separately for calculating Net Present Value. 1b) Fully explain why the Discount Rate is increasing over the years in Figure 14.1....

ASAP please explane the equation as given (figuers title given on answer sheet) answer provide by chegg expert has been shared as photo and i would like to see the eqution detail(explanation) as on...

pls do both, these require excel formulas: ok pls do only this 1 then, sorry A shoe manufacturer is evaluating new equipment that would custom fit athletic shoes. The new equipment costs $90,000 and...

THE LEVERAGED BUYOUT OF CHEEK PRODUCTS, INC., you have to use the APV approach in determining the value of the stock. You have to do the following four steps: Step 1: Calculating the present value of...

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 (Unit: Baht) CONSOLIDATED FINANCIAL SEPARATE FINANCIAL STATEMENTS STATEMENTS...

Please prepare a spreadsheet as in Chapter 9 to show the cash flow of a business for 10 years, internal rate of return, and the net present value of the proposed project. Based on that determine...

Managerial Accounting focuses heavily on finding solutions to numerical problems.With that in mind, most units will include a number of problems. For each problem, you will need to provide more than...

QUESTION 1 Net Present Value, Annual cash Flow, Internal Rate of Return King Company's required rate of return is 10%. The company is considering the purchase of three machines, as indicated below....

a. 1. What is the nature of the investment that is under consideration, and what are the sources of value (cost savings and revenue increases)? 2. What yearly cash flows are relevant for this...

Homework 6-PS4 Q8 - Project Evaluation (Complete the assigmment in Excel. This is essentially a valuation problem where you need to figure out both cash flow and the discount rate. For examples of...

Write complete mechanism of the given reaction. x+ + CH3CHBr Wittig CHCH3

Two projectiles are fired from the same point with the same speed at angles of projection 60 and 30 respectively. Which one of the following is true? (a) Their maximum height will be same (b) Their...

Content Area A printed price of a manufacturer or wholesaler that is subject to trade discounts is called a. list price. b. net price. c. gross price. d. retail price

Skills necessary for success in marketing include Multiple select question. analytical thinking advertising industry experience infallibility ability to work with others

How is the increasingly mobile workforce changing how, when, where, and what work is done? What opportunities and challenges face managers and mobile workers?

Use the job analysis questions in Toolkit 4.1-to interview someone, perhaps another student who is working, about their job. What did you discover about the job analysis interview process and the...

If a job incumbent inflates their work when submitting information for job analysis, why should this person be included in the process? Why shouldnt the information for job analysis only be collected...