subject
Business, 11.07.2019 20:20 dijonmckenzie3

You are in negotiations to make a 7-year loan of $25,000 to deville corporation. to repay you, deville will pay $2,500 at the end of year 1, $5,000 at the end of year 2, and $7,500 at the end of year 3, plus a fixed but currently unspecified cash flow, x, at the end of each year from year 4 through year 7. you are confident the payments will be made, since deville is essentially riskless. you regard 8% as an appropriate rate of return on a low risk but illiquid 7-year loan. what cash flow must the investment provide at the end of each of the final 4 years, that is, what is x?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 16:30
Summarize the specific methods used by interest groups in order to influence governmental decisions making in all three branches of government. provide at least two examples from each branch.
Answers: 3
question
Business, 22.06.2019 19:40
Last year ann arbor corp had $155,000 of assets, $305,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 37.5%. the new cfo believes a new computer program will enable it to reduce costs and thus raise net income to $33,000. assets, sales, and the debt ratio would not be affected. by how much would the cost reduction improve the roe? a. 11.51%b. 12.11%c. 12.75%d. 13.42%e. 14.09%
Answers: 3
question
Business, 22.06.2019 20:20
Garcia industries has sales of $200,000 and accounts receivable of $18,500, and it gives its customers 25 days to pay. the industry average dso is 27 days, based on a 365-day year. if the company changes its credit and collection policy sufficiently to cause its dso to fall to the industry average, and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant? a. $241.45b. $254.16c. $267.54d. $281.62e. $296.44
Answers: 2
question
Business, 22.06.2019 20:40
The largest elements of community corrections are
Answers: 1
You know the right answer?
You are in negotiations to make a 7-year loan of $25,000 to deville corporation. to repay you, devil...
Questions
question
Biology, 27.09.2019 00:00
Questions on the website: 13722361