The present value also called discounted value is the value today of an amount that will be received in the future. The future value of a dollar today is worth more than the current value because of the potential earning capacity of money as p...
Compute the present value of the following: Years: 7 Interest Rate: 13 percent Future Value: $952,567 Calculate the present value given the following information: present value = $500; number of periods = 4; interest rate of 5%. Calculate the interest rate for each of the following: Prese...
a1. Explain why cash flows occurring at different times must be discounted to a common date before they can be compared, and be able to compute the present value and future value for multiple cash flows. 1. 解释为什么必须打折发生在不同的时刻的现金流动对一个共同的日期,在他们可以被比较之前,...
NPV translates all future cash flows. both inflows and outflows into their equivalent present values today, and then adds them up to find the "net": the 'net present value" of the project. The Net Present Value Capital Budgeting Rule states that a firm should accept projects with a positiv...
Compute the acid-test ratio. Assume 365 days a year. Compute (assume no changes in balances during the past year) the payout ratio of common stock. Calculate the present value of $15,000 received in each of the following eleven years with an interest of 7%. ...
cash flowspvfix returns the present value of a series of equal payments (based on a constant interest rate). pvfix generates a three column matrix (rows = nper) containing the entire schedule of (end of period) discounted cash flows distinguishing between: period number, discount factor...
a bond if you hold it until maturity (assuming it doesn't miss payments). It's expressed in an annual percentage, just like the current yield. However, YTM isnotcurrent yield – yield to maturity is the discount rate which would set all bond cash flows to the current price of the ...
Which investment has no rate of return? Internal Rate of Return: Internal rate of return is a type of discounted rate of return where the net present value of an investment is equal to zero. When the project's required rate of return is higher than internal rate of return, ...
Discuss why financial analysts use a firm's weighted average cost of capital when equating future cash flows to their present value equivalent. 1. Why is the analysis of growth potential important to the common stockholder? Why is it important...
Given that the compCompute the debt-to-equity ratio of McCord Corporation. (Use 365 days a year.)Compute the present value of free cash flows to all debt and equity capital stakeholders at the weighted average cost of capital, ignore the midyear adjustment. Assume...