Ambrin Corp. expects to receive $5000 per year for 10 years and $6500 per year for...

Ambrin Corp. expects to receive $5000 per year for 10 years and $6500 per year for the next 10 years. What is the present value of this 20 year cash flow? Use an 12% discount rate. Use Appendix D and Appendix B to calculate the answer. (Round your intermediate calculations to the nearest dollar value.)

Options below:

		$40,076
		$64,975
		$48,550.5
		none of these

Expert Solution

Calculation of present value:

Time	Cashflow	PVF @12%	PV
1	5000	0.8929	4,464.29
2	5000	0.7972	3,985.97
3	5000	0.7118	3,558.90
4	5000	0.6355	3,177.59
5	5000	0.5674	2,837.13
6	5000	0.5066	2,533.16
7	5000	0.4523	2,261.75
8	5000	0.4039	2,019.42
9	5000	0.3606	1,803.05
10	5000	0.3220	1,609.87
11	6500	0.2875	1,868.59
12	6500	0.2567	1,668.39
13	6500	0.2292	1,489.63
14	6500	0.2046	1,330.03
15	6500	0.1827	1,187.53
16	6500	0.1631	1,060.29
17	6500	0.1456	946.69
18	6500	0.1300	845.26
19	6500	0.1161	754.69
20	6500	0.1037	673.83
NPV			40,076.05
So correct answer is $40076

jeff jeffy answered 3 months ago

Ambrin Corp. expects to receive $9,000 per year for 14 years and $10,500 per year for...

Ambrin Corp. expects to receive $9,000 per year for 14 years and $10,500 per year for the next 14 years. What is the present value of this 28 year cash flow? Use an 11% discount rate. Use Appendix D and Appendix B. (Round "PV Factor" to 3 decimal places. Round your intermediate calculations to the nearest dollar value.)

A) TLC = 6500 VC = 5000 Find RV. TLC = 6500 IC = 3500 Find...

A) TLC = 6500 VC = 5000 Find RV. TLC = 6500 IC = 3500 Find FRC. TLC = 6500 RV = 1200 Find VC. IC = 3500 TV = 600 Find IRV. FRC = 2300 RV = 1200 Find ERV. B) The total volume of air in Jeffrey’s lungs is 5800 mL. If his IC is 3200 and his RV is 1000, calculate his ERV and FRC. TLC = 4200, VC = 3200, IC = 2000 Calculate the FRC...

If I saved $5000 for 10 years at a 2% rate. And add $2500 per year...

If I saved $5000 for 10 years at a 2% rate. And add $2500 per year to the original savings over the same 10 years. How much would I have in 10 years.

C Corp. is expecting to receive 100,000 British pounds in one year. C Corp expects the...

C Corp. is expecting to receive 100,000 British pounds in one year. C Corp expects the spot rate of the British pound to be $1.49 in a year, so it decides to avoid exchange rate risk by hedging its receivables. The spot rate of the pound is quoted at $1.51. The strike price of put and call options are $1.54 and $1.53, respectively. The premium on both options is $.03. The one-year forward rate exhibits a 2.65 percent premium. Assume...

1. You will receive $100 per year for 10 years. The discount rate is 10%. What...

1. You will receive $100 per year for 10 years. The discount rate is 10%. What is the present value of this stream? 2. Using the previous information, assume now the 100 will increase at a 5% per year from year 1. What is the new present value? 3. Now assume compute the present value for the same information using a perpetuity without and with growth. Compare the 4 present values. What would you rank those? (Please explain step by...

Sisters Corp. expects to earn $34 per share next year. The firm’s ROE is 10% and...

Sisters Corp. expects to earn $34 per share next year. The firm’s ROE is 10% and its plowback ratio is 40%. If the firm’s market capitalization rate is 8%, what is the present value of its growth opportunities?

A company expects to earn $350,000 per year for 10 years by purchasing a $1.5 million...

A company expects to earn $350,000 per year for 10 years by purchasing a $1.5 million equipment. The asset will be sold for $300k after 10 years. The effective tax rate for the company is 30%, the interest-free MARR is 15% and the average inflation is 2.2%. Compute the IRR for the company. I found the depreciation to be using Straight Line Analysis: $120000 and the taxable income to be $230000. If anyone could help me ill grateful!

A corporate expects to receive $37,119 each year for 15 years if a particular project is...

A corporate expects to receive $37,119 each year for 15 years if a particular project is undertaken. There will be an initial investment of $118,535. The expenses associated with the project are expected to be $7,570 per year. Assume straight-line depreciation, a 15-year useful life, and no salvage value. Use a combined state and federal 48% marginal tax rate, MARR of 8%, determine the project's after-tax net present worth

An investor expects to receive $2,000 each year for the next five years, with the first...

An investor expects to receive $2,000 each year for the next five years, with the first payment beginning at the end of the year. What is the present value of the these payments if the interest rate is expected to be 5% for years 1-3 and 8% thereafter?

$800 per year for 10 years at 10%. $ $400 per year for 5 years at...

$800 per year for 10 years at 10%. $ $400 per year for 5 years at 5%. $ $800 per year for 5 years at 0%. $ Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. Present value of $800 per year for 10 years at 10%: $ Present value of $400 per year for 5 years at 5%: $ Present value of $800 per...

Question