Question

Use present value and discounting to evaluate free cash flows of $1000 for the next 10...

Use present value and discounting to evaluate free cash flows of $1000 for the next 10 years. Calculate discount rates at 8% and 12%.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculate the present value of the following cash flows given a discount rate of 12%: Year...
Calculate the present value of the following cash flows given a discount rate of 12%: Year 1 Year 2 Year 3 Year 4 Cash Flows $1,500 $8,500 $12,500 $11,000 Calculate the internal rate of return for a project that has upfront costs of $7 million and cash flows of $2.5 million per year for each of the next four years. The risk adjusted project discount rate is 12%.
You forecast the free cash flows for your target firm over the next five years. The...
You forecast the free cash flows for your target firm over the next five years. The final cash flow, at the end of year five, is projected to be $200 million. Assuming a FCF terminal growth rate of 3% and an overall discount rate of 12%, what is the present valueof all future cash flows after the planning period? (Hint: do not forget to discount to today.)
I was just wondering how the present value of future cash flows and discount at 10%...
I was just wondering how the present value of future cash flows and discount at 10% columns were calculated in this problem: At the end of 2012, you forecast the following cash flows (in millions) for a firm with net debt of $759 million: 2013 2014 2015 Cash flow from operations $1,450 $1,576 $1,718 Cash investment 1,020 1,124 1,200 You forecast that free cash flow will grow at a rate of 4 percent per year after 2015. Use a required...
Why do companies use a mid-year adjustment when discounting future free cash flows? What do you...
Why do companies use a mid-year adjustment when discounting future free cash flows? What do you do with “in the money” executive stock options when calculating the value of a company?
Calculate the present value of the given stream of cash flows using the given discount rate....
Calculate the present value of the given stream of cash flows using the given discount rate. The present value you find is between $24,000 and $24,100. time cash flows discount rate 0 5% 1 $1,000 2 $1,500 3 $2,000 4 $2,500 5 $3,000 6 $3,500 7 $4,000 8 $4,500 9 $5,000 10 $5,500
a. Calculate the present value (PV?) of a cash inflow of $500 in one year, and...
a. Calculate the present value (PV?) of a cash inflow of $500 in one year, and a cash inflow of $1,000 in 5 years, assuming a discount rate of 15%. b. Calculate the present value (PV?) of an annuity stream of 5 annual cash flows of $1,200, with the first cash flow received in one year, assuming a discount rate of 10%. c.What is the present value of a perpetual stream of annual cash flows of $100, with the first...
10 What is the Present Value of the following cash flows using a 10 % discount...
10 What is the Present Value of the following cash flows using a 10 % discount rate T1 = 50 T2 = 300 T3 = 87 T4 = 400
why APV would be appropriate in place of discounting the free cash flows at the after-tax...
why APV would be appropriate in place of discounting the free cash flows at the after-tax WACC.
Use Excel and the text to calculate the present value of a series of cash flows...
Use Excel and the text to calculate the present value of a series of cash flows if you put $3,500 into a fund at the end of the year for 10 years at 6%, but you won’t start depositing money for 10 years, i.e., will defer your annuity for 10 years? Be prepared to describe how you calculated your answer. Use the two step approach that subtracts values in your Excel work because calculating factors is more difficult in Excel
Calculate the present value of the following cash flows given a discount rate of 12%: Year...
Calculate the present value of the following cash flows given a discount rate of 12%: Year 1 Year 2 Year 3 Year 4 Cash Flows $1,500 $8,500 $12,500 $11,000
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT