personal

posted by .

How much would an investor with a 12% required return be willing to invest in a project that will provide a cash flow of $2M every year for five years, five years from now, i.e. in years 6,7,8,9 and 10.

  • Math? Finance? -

    Please type your subject in the School Subject box. Any other words, including obscure abbreviations, are likely to delay responses from a teacher who knows that subject well.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. investing

    Gregg graduated several years ago with his MBA. He founded Alpha Industries upon graduation and has worked hard to build the business. In the year that just ended, Alpha’s free cash flow was negative $10 million due to a significant …
  2. homework

    Ms. Brown estimates the following cash flow for the first five years of operations, with cash flow leveling off in year 5. Year Cash flow Year 1 $695,000 Year 2= 876,250 Year 3= 1,057,500 Year 4= 1,238,750 Year 5= 1, 420,000 Calculate …
  3. Finance

    14.You need to have $15,000 in five years to pay off a home equity loan. You can invest in an account that pays 5.75 percent compounded quarterly. How much will you have to invest today to attain your target in five years?
  4. Finance

    Year Cash Flow 1 $695,000 2 876,250 3 1,057,500 4 1,238,750 5 1,420,000 1. Calculate the IRR and NPV of this project utilizing a 12% discount rate and a 15% cap rate. Ms. Brown was able to secure a loan for $1,540,000, and an equity …
  5. Business finance

    Question No 1: Sumi Inc. has policy of paying a Rs. 9 per share dividend every year. If this policy is to continue indefinitely, what will be the value of a share of stock at a 12% required rate of return?
  6. Managerial Economics

    You are considering setting up a software development business. To set up the enterprise you will need to buy equipment costing $100,000. This equipment will be depreciated straight line over 5 years to a zero salvage value. Its market …
  7. Finance

    Calculate the project’s initial Time 0 cash flow, taking into account all side effects.?
  8. Kennedy King

    7. You are scheduled to receive a $750 cash flow in one year, a $1,000 cash flow in two years, and pay a $300 payment in four years. If interest rates are 6 percent per year, what is the combined present value of these cash flows?
  9. business finance

    Your client is 40 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save RM5,000 per year, and you advise her to invest it in the stock market, which you expect to provide …
  10. Co-operate Finance

    As the investment analyst for King breweries you are required to analyze the automated loom system in the Castle larger production line. The old system was purchased 5 years ago for $200,000. It falls in the accelerated cost recovery …

More Similar Questions