ZuoTi.Pro
Question

Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks!

Question 11 3 pts Your firm has been working on an advanced technology. This technology will be available in the near term. The firm anticipates the first annual cash flow from the technology to be $141504, received three years from today. Subsequent annual cash flows will grow at 2.33% in perpetuity. What is the present value of the technology if the discount rate is 8.35%? (Round answer to 2 decimal places. Do not round intermediate calculations) Topic: Discounted Cash Flow Valuation

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Present value of Technology Here, 4 A rate per annum B Number of years C Number of compoundings per per annum 8.35% 2 8 AHC rate per period (n) !) Ito: Number of periodi (n) 10 8.35% 2 Technology value in 2years (FV) 2,350,564.78 |-141504/(8.35%-2.33%)| 12 Present value of Technology $ 2,002,231.98 2350564.78x( 1 (1+8.35%)2 13

0 0
Add a comment
Know the answer?
Add Answer to:
Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...

    Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks! Question 11 3 pts Your firm has been working on an advanced technology. This technology will be available in the near term. The firm anticipates the first annual cash flow from the technology to be $141504, received three years from today. Subsequent annual cash flows will grow at 2.33% in perpetuity. What is the present value of...

  • Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...

    Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks! Question 11 3 pts Your firm has been working on an advanced technology. This technology will be available in the near term. The firm anticipates the first annual cash flow from the technology to be $141504, received three years from today. Subsequent annual cash flows will grow at 2.33% in perpetuity. What is the present value of...

  • Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...

    Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks! Question 11 3 pts Your firm has been working on an advanced technology. This technology will be available in the near term. The firm anticipates the first annual cash flow from the technology to be $141504 received three years from today. Subsequent annual cash flows will grow at 2.33% in perpetuity. what is the present value of...

  • Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...

    Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks! Question 11 3 pts Your firm has been working on an advanced technology. This technology will be available in the near term. The frm anticipates the first annual cash flow from the technology to be $141504, received three years from today. Subsequent annual cash flows will grow at 2 .33% in perpetuity. What is the present value...

  • Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...

    Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks! D | Question 10 1 pts A prestigious investment bank has designed a new security that pays a quarterly dividend of $2.81 in perpetuity. The first dividend occurs one quarter from today. What is the price of the security if the stated annual interest rate is 7.27%, compounded quarterly? (Round answer to 2 decimal places. Do not...

  • Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...

    Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks! Question 1 0.5 pts What is the future value in 7.8 years of $5546 invested in an account with a stated annual interest rate of 8%, compounded annually? (Round answer to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation

  • Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...

    Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks! | Question 4 0.5 pts What is the future value in 6 years of $8899 invested in an account with a stated annual interest rate of 6.3%, compounded continuously? (Round answer to 2 decimal places. Do not round intermediate calculations) Topic: Discounted Cash Flow Valuation

  • Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...

    Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks! Question 3 0.5 pts What is the future value in 5 years of $7605 invested in an account with a stated annual interest rate of 5.9%, compounded monthly? (Round answer to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation

  • Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...

    Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks! Question 2 0.5 pts What is the future value in 12 years of $604 invested in an account with a stated annual interest rate of 6.3%, compounded semi-annually? (Round answer to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation

  • Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...

    Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is not exact, it will be incorrect. Thanks! Question 8 1 pts First National Bank charges 11.20 % compounded monthly on its business loans. First Unit Bank charges 11.73%, compounded semiannually Calculate the EAR for First United Bank. (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation ed

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT