I need support with this Business question so I can learn better.
Hi everyone, I really need help with this assignment. I am super sick and it is due tonight which is why I am panicking. It is really easy and below I have attached the document with the homework questions. Also, You can look below to see some of the questions they are asking in the document.
- Huggins Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18 percent? At 24 percent?
- Investment X offers to pay you $4,700 per year for eight years, whereas Investment Y offers to pay you $6.700 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent?
- Cannonier, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of the cash flows in Year 4? What is the future value at a discount rate of 11 percent? At 24 percent?
- An investment offers $5,500 per year for 15 years, with the first payment occurring one year from now. If the required return is 6 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever?
Year |
Cash Flow |
1 |
$ 680 |
2 |
810 |
3 |
940 |
4 |
1,150 |
Year |
Cash Flow |
1 |
$ 1,225 |
2 |
1,345 |
3 |
1,460 |
4 |
1,590 |
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