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Anna owns a(n) climbing wall that is worth 113,655 dollars and is expected to make annual cash flows forever. The cost of capital for the climbing wall is 11.72 percent. The next annual cash flow is expected in 1 year and is expected to be 11,070 dollars. All subsequent cash flows are expected to grow annually at a constant growth rate. What is the cash flow produced by the climbing wall in 5 years expected to be?

Oxygen Optimization just bought a new filtration system for 245,300 dollars. To pay for the filtration system, the company took out a loan that requires Oxygen Optimization to pay the bank a special payment of 120,700 dollars in 6 year(s) and also make regular annual payments forever. The first regular payment is expected in 1 year and is expected to be 1,600 dollars. All subsequent regular payments are expected to increase by a constant rate each year forever. The interest rate on the loan is 16.79 percent per year. What is the annual growth rate of the regular payments expected to be? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

What is the value of an investment that will pay investors 3,560 dollars per year for 7 years and will also pay investors an additional 2,800 dollars in 1 year(s) from today if the expected return for the investment is 9.41 percent per year and the first annual payment of 3,560 dollars will be paid to investors in one year from today?

Vivian owns a(n) vending machine that is worth 319,355 dollars and is expected to make annual cash flows forever. The cost of capital for the vending machine is 16.48 percent. The next annual cash flow is expected in one year from today and all subsequent cash flows are expected to grow annually by 5.62 percent. What is the cash flow produced by the vending machine in 5 years from today expected to be?

Financial Management, Finance

  • Category:- Financial Management
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