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A coffee shop is expected to produce regular annual cash flows of 44,925 dollars with the first regular cash flow expected later today and the
A coffee shop is expected to produce regular annual cash flows of 44,925 dollars with the first regular cash flow expected later today and the last regular cash flow expected in 4 years from today. In addition to the regular cash flows of 44,925 dollars, the coffee shop is also expected to produce an extra cash flow of 68,836 dollars in 5 years from today. The cost of capital for the coffee shop is 9.94 percent. What is the value of the coffee shop? Number Sasha has an investment worth 14,017 dollars. The investment will make a special payment of X to Sasha in 6 years from today. The investment also will make regular, fixed annual payments of 1,400 dollars to Sasha with the first of these payments made to Sasha later today and the last of these annual payments made to Sasha in 9 years from today. The expected return for the investment is 10.81 percent per year. What is X, the amount of the special payment that will be made to Sasha in 6 years? Number Investment A will make N annual payments of $500 with the first of the N payments due immediately. Investment A has a value of $20,000. Investment B is an ordinary annuity that will make (N minus 1) annual payments of $500 with the first payment due in one year from today. If investment A and investment B have the same expected return, then what is the value of investment B? The value of investment B can not be determined from the information given $20,000 $19,500 $20,500 The value of investment B can be determined from the information given, but it is not equal to $19,500, $20,000, or $20,500
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