you have two assets and must calculate their values today based on their payment streams and...

you have two assets and must calculate their values today based on their payment streams
and required returns.
asset 1 return of 9% and will produce stream of $300 starting in 1 year and continue indefinitely. Asset 2 has a return of 7% and will produce a cadh flow of 1,400 in 1 year , $ 1300 in 2 years and $850 in 3 years.

Expert Solution

ASSET 1 VALUE TODAY = CASH FLOW / REQUIRED RETURN

= 300 / 9%

= $ 3333.33

ASSET 2 VALUE TODAY = $ 3137.73

Year	Project Cash Flows (i)	DF@ 7%	DF@ 7% (ii)	PV of Project A ( (i) * (ii) )

1	1400	1/((1+7%)^1)	0.935	1,308.41
2	1300	1/((1+7%)^2)	0.873	1,135.47
3	850	1/((1+7%)^3)	0.816	693.85
		NPV		3,137.73

ekkarill92 answered 4 months ago

Calculate the amount of money that a person must have in a bank today (the beginning...

Calculate the amount of money that a person must have in a bank today (the beginning of the year) to be able to withdraw $375 at the end of each year for the next 10 years if the bank pays interest compounded yearly at j1 = 5.8% pa. Give your answer in dollars and cents to the nearest cent. Account balance = $ Calculate the simple interest rate pa that must be earned for $60,000 invested on 29 October 2019...

You have the alternative of paying for university fees today for a payment of $15,000 or,...

You have the alternative of paying for university fees today for a payment of $15,000 or, you can select a payment plan where you pay $6,000 in 11 months from today and another $11,000 in exactly 23 months from today. If the interest rate is 6.2%p.a. compounding monthly, what is the advantage that the payment plan has over the upfront payment? (expressed in present day value rounded to the nearest cent; do not show $ sign or comma separators; if...

Q1: You have the alternative of paying for university fees today for a payment of $15,000...

Q1: You have the alternative of paying for university fees today for a payment of $15,000 or, you can select a payment plan where you pay $7,000 in 8 months from today and another $12,000 in exactly 24 months from today. If the interest rate is 12.4%p.a. compounding monthly, what is the advantage that the payment plan has over the upfront payment? (expressed in present day value rounded to the nearest cent; do not show $ sign or comma separators;...

Calculate the pH values of the following solutions (you must show the procedure of calculations: a-mole...

Calculate the pH values of the following solutions (you must show the procedure of calculations: a-mole of formic acid and 0.02 mole of NaOH diluted to 1L. (formic acid pK=3.75). b-An aspartic acid solution if the alpha carboxyl is 1/2 dissociated. (aspartic acid pK1= 2.0, pK2=9.9, pKside=3.9)

You will have to search for your dream house, calculate the down payment, and the monthly...

You will have to search for your dream house, calculate the down payment, and the monthly payments for a 30 and 15 years fixed loan. You will use the loan payment formula to determine your monthly payments for a 30-year fixed loan with an APR of 3.75% and for a 15-years fix loan with an APR of 2.97% with a down payment of 5%. You will make a decision on which loan you would take and provide reasons for your...

For the double-pipe heat exchanger of Problem 3.10, calculate the outlet temperatures of the two streams...

For the double-pipe heat exchanger of Problem 3.10, calculate the outlet temperatures of the two streams when the unit is first placed in service. Q:3.10 A hydrocarbon stream is to be cooled from 200◦F to 130◦F using 10,800 lb/h of water with a range of 75–125◦F. A double-pipe heat exchanger comprised of 25 ft long carbon steel hairpins will be used. The inner and outer pipes are 1.5- and 3.5-in. schedule 40, respectively. The hydrocarbon will flow through the inner...

2-1- Based on Initial Observation values, calculate the mean and standard deviation of the data. (You...

2-1- Based on Initial Observation values, calculate the mean and standard deviation of the data. (You need to show your calculation for standard deviation calculation). Then calculate the Cp and Cpk of the process based on provided USL and LSL in the article. USL=105 mm LSL=75 mm 97.04 100.22 97.07 96.32 89.63 94.29 96.01 99.88 96.08 92.4 94.76 97.02 95.51 96.63 95.69 94.01 99.75 96.07 97.11 96.24 96.94 99.98 97.94 97.75 94.44 97.72 96.4 97.55 96.17 98.09

You are considering two lotery payment options: Option A pays $20000 today and option B pays...

You are considering two lotery payment options: Option A pays $20000 today and option B pays $40000 at the end of ten years. Assume you can earn 8 percent on your savings. a) Which option will you choose if you base your decision on present values? b) Which option will you choose if you base your decision on future values? c) Explain why your answers are either the same or different.

You must fill out the table below, then you must find the values for a, b1...

You must fill out the table below, then you must find the values for a, b1 and b2, finally you must determine how much the profits would be if you invest 10 thousand dollars in advertising and if you increase it to 20 sellers. REMEMBER all the procedures and formulas should appear. Y X1 X2 1 2 3 4 5 Year Sales $ promotion Sales person åX1 Y X12 X1 X2 X2Y X22 2017 18 2 2 2018 23...

Calculate the population mean and median based on the numerical values of Satisfaction Level, and then...

Calculate the population mean and median based on the numerical values of Satisfaction Level, and then interpret those at the nominal level. TABLE C6-2: Customer Satisfaction Customer Number Customer Name Satisfaction Level Level No. 1 Anderson Very high 4 7 Hetfield very high 4 14 Luo very high 4 15 Madras very high 4 19 Nickens very high 4 20 Poteau very high 4 2 Angero high 3 5 Chontos high 3 9 Jamesson high 3 11 Lehmann high 3...

Question