Purchase Solution

discounted cash flow problem

Not what you're looking for?

Ask Custom Question

How long must a temporary warehouse last to be a profitable investment if it costs $19,000 to build, has annual maintenance and operating expenses of $480, provides storage space revenue of $3900 per year, and if the company MARR is 10%?

Purchase this Solution
Solution Summary

This posting solves a discounted cash flow problem.

Solution Preview

Hi,

This looks like a fairly simple discounted cash flow problem. The warehouse costs a certain amount to build and will generate net profits of ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • NPV and IRR

    A) Net Present Value To calculate the NPV ( Net Present Value) we discount the cash flow at the given discount rates i) discount rate= 0% Year Cash flow PV factor @.% Discounted cash flow= 0 ($6,750) 1 -6,750 =-6750*1

  • Calculating payback, discounted payback and IRR

    Oranges Inc. is considering a project that has the following cash flow and Cost of Capital data. What is the project's discounted payback?

  • Jo Company: Calculate cost of retained earnings using discounted cash flow method

    Calculate the cost of retained earnings using the discounted cash flow method.

  • Accounting Rate of Return, Payback period, IRR

    payback period discount factor= 10% In the discounted payback period method the cash flows are discounted Year Cash flow Discount factor @ Discounted cash flow= Cumulative discounted

  • Capital Budgeting Techniques for Comparing Investment Criteria

    It means that it will recoup its cash oulay earlier than Project A DISCOUNTED PAYBACK PERIOD TABLE-II CASH FLOWS MACHINE A Discounted cash flow Cumulative Discount cash flows MACHINE B Discounted cash flow YEAR 0 -294055 -294055.00

  • Present Value

    discount the cash flow at the given discount rate Stream A discount rate= 8% Year Cash flow PV factor @8.% Discounted cash flow= 0 $0 1 0.00 =0*1 1 $100 0.925926

  • NPV, IRR, and Sensitivity Analysis

    $7,000 $4,700 $9,300 Duration 10 10 10 Discount rate 6% 6% 6% Net present value $9,521 -$7,408 $26,449 Discount rate Discount factor Discounted cash flow Year Cash flow ;+NPV ;-NPV ;+NPV ;-NPV ;+NPV ;-NPV

  • Project Cash Flow Analysis

    55716 Project Cash Flow Analysis Please verify that I did the problem correctly. If I didn't, please show me how to do it.

  • Finance:Cost of capital, Capital budgeting and Bonds.

    Cash flow Discounted cash flow Year Cal Aron Discount rate Discount factor Cal Aron 0 -2,000 -2,500 10% 1.00 =(1 + 10%)^Year -2,000.0 -2,500.0 1 900 1,500 10% 1.10 818.2 =900/1.10 1,363.6 =1,500/1.10 2 1,100 1,300 10% 1.21 909.1 1,074.4 3 1,300

View More Related Solutions