The following is a forecast of net cash thrown off from a business. You require a 12% return on your money. What is the maximum price you would pay for this business. $550 Each year for the next 5 years. What is the purchase price. Please show how you did it in excel so I can do it

Hence, Purchase price is $1,982.63
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The following is a forecast of net cash thrown off from a business. You require a...
Alternatives A and B require investments of $10,310 and $13,400, respectively. Their respective net annual cash inflows are $3,300 and $4,000. a) What is the rate of return for each alternative and for the incremental difference? (Do not use Excel, and please show all steps) b) If the interest rate is 10%, which alternative should be selected? (Do not use Excel, and please show all steps)
Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no other assets (such as building and land), the purchase price is $240,000. The net cash flows for the project are $30,000 per year for the next 5 years. You plan to borrow the money for this investment at 5%. Prepare a net present value calculation for this project. What is the net present value of this project? Calculate the simple...
You can purchase an asset today for $10,000. If you purchase the asset, you will receive a net incremental cash flow of $1600 at the end of each of the next 10 years. What is the Internal Rate of Return and Net Present value with a discount rate of 8%? Please show in excel. Thank you!
5 Consider the investment project with the following net cash flows: Year Net Cash Flow 0 $1,500 SX $650 SX What would be the value of X if the project's IRR is known to be 10%? The annual income from a rented house is $24,000. The annual expenses are $6000. If the house can be sold for $245,000 at the end of 10 years, how much could you afford to pay for it now, if you considered 900 to be...
You are considering a project that promises you cash flows of 554 USD each year for 3 years. Based on the riskiness of the project, you require a 12 percent return. What is the maximum you should be willing to pay? You are considering a project that promises you cash flows of 508 USD each year for 5 years. Based on the riskiness of the project, you require a 12 percent return. The cost to buy into the project is...
Step 1 Read the scenario. Assume you are thinking about starting a business and would like to forecast your cash needs for the next six months. You expect sales to be approximately $30,000 per month for the first 12 months and your purchases to support sales will be approximately 60% of sales. You anticipate about 20% of your sales will be cash and 80% collected the following month. Your supplier has agreed to extend credit for 70 days at no...
Your company is evaluating a purchase of Skeksis Crystal Mining LLC. Skekis produced free cash flow of $7.3m last year, and this is expected to grow at 11% for the next five years before leveling off to a long term growth rate of 2%. Your company has a cost of capital of 10%, while Skeksis has a cost of capital of 13%. Skeksis has 3 million shares outstanding and $25m in debt. What would be the highest price you would...
Show Excel, please Suppose you are trying to decide whether to purchase a business. You expect that you will be able to collect $4,000,000 in revenue in year 1 and you expect your revenues to increase by 6% each year though year 10. Your costs in year 1 are expected to be $2,400,000 but you expect them to increase by 3% each year thereafter. You believe that you will be able to sell the business after 10 for %24,000,000 at...
You decided AAPL is a stock fit for using dividend discount model. You expect the company's dividend to growth at 15% for the next 3 years, follow by 12% for another 3 years. Then, the growth rate will slow down to 8% a year. The require return for the company is 11%. The company paid $2.8 in dividend last year. What should be the price for AAPL today? Please do this in Excel and show formulas.
Please show me your clear
work. thank you so much!!
4) You are considering investing in a local business that modifies equipment & sells it to the public at a much higher price. You believe you can sell 4 units/ year with each modified unit selling for $25,000. You estimate the costs: labor & materials $10,000/unit, an initial $10,000 increase in NWC continuing for 4 yrs, lease expense for $15,000/yr, $60,000 in fixed assets (depreciate to zero salvage value) with...