beta=1.2 standard deviation=$340 coefficient variation=.40 What is the expected value cash flow? Please explain how to figure it out. Thank you!
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beta=1.2
standard deviation=$340
coefficient variation=.40
What is the expected value cash flow?
Please explain how to figure it out. Thank you!
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- Consider the following cash flow diagram. What is the value of X if the internal rate of return is 15%? Solve, a. $246 b. $255 c. $281 d. $290.Assume that an investment is forecasted to produce the following cash flows: a 10% probability of $1475; a 50% probability of $2893; and a 40% probability of $3831. What is the expected amount of cash flow this investment will produce? Instruction: Type ONLY your numerical answer in the unit of dollarsThe following infinite cash flow has a rate of return of 20%. Compute theunknown value of X. (a) $3,028(b)$5,510(c) $5,028(d) $5,236
- refer to below table ,Conduct a sensitivity analysis to determine the sensitivity of NPV to changes in the sales price, number of units sold, the variable costs per unit, fixed costs and the cost of capital. Set these variables’ values at 10% above and 10% below their base-case values. 2. Include a graph in your analysis with below table? 10% above Year Net Cash Flow (RM) Discount Rate (13.20%) Present Value (RM) 0 -1,217,800.00 1 -1217800 1 328,750.00 0.883392 290415.19 2 337,330.00 0.780382 263246.2 3 346,423.15 0.689383 238818.31 4 355,195.10 0.608996 216312.32 5 614,461.20 0.537982 330569.16 NPV 121561.19 10% below Year Net Cash Flow (RM) Discount Rate (10.80%) Present Value (RM) 0 -1,145,800.00 1 -1145800 1 184,000.00 0.902527 166064.98 2 185,395.00 0.814555 151014.45 3 189,459.85 0.735158 139282.93 4 193,936.89 0.6635 128677.14 5 448,143.25 0.598827 268360.17…This question assumes the standard mean-variance utility function. You are investing in the S&P500 index, along with U.S. Treasury bills. Your risk-aversion is 8. Treasury bills will earn you a return of 6.40%, with no risk associated with them. The S&P500 has volatility 32.70%, but earns a more attractive expected return of 8.90%. What percentage of your wealth should you allocate to Treasury bills?Incremental cash flow is calculated as (cash flowB− cash flowA), where B represents the alternative with the larger initial investment. If the two cash flows were switched wherein B represents the one with the smaller initial investment, which alternative should be selected if the incremental rate of return is 20% and the MARR is 15%? Explain.
- For the given cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow 0 –$ 148,000 1 64,000 2 75,000 3 59,000 a. At a required return of 12 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 21 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Consider an investment with the following probability distribution: Probability Payoff 0.35 38.0 % 0.40 -5.0 0.25 -17.0 Calculate the expected return. Do not round intermediate calculations. Round your answer to two decimal places. _______ % Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. _______ % Calculate the coefficient of variation. Do not round intermediate calculations. Round your answer to two decimal places. _______d) Assume that the short-term risk-free rate is 3%, the market index S&P500 is expected to pay returns of 15% with the standard deviation equal to 20%. Asset A pays on average 5%, has standard deviation equal to 20% and is NOT correlated with the S&P500. Asset B pays on average 8%, also has standard deviation equal to 20% and has correlation of 0.5 with the S&P500. Determine whether asset A and B are overvalued or undervalued, and explain why.
- The cash flows for two alternatives X and Y are shown in the table displayed here. Year: 0 1 2 3 4 5 Alternative X: -$3,000 900 900 900 900 1,300 Alternative Y: -$5,000 1,400 1,400 1,400 1,400 2,100 Write an equation using appropriate compound-interest factors that could be used to solve for the incremental rate of return (ΔIRR) associated with these two alternatives. Do NOT solve this equation for ΔIRR.The following table shows the forecast cash flows for two projects: C0C0 C1C1 C2C2 C3C3 C4C4 C5C5 A −$1,100 $30 $30 $30 $30 $1,280 B −1,100 80 80 1,100 Now suppose that the term structure is upward sloping and investors demand a higher return on the more distant flows as in the following table: t 1 2 3 4 5 rtrt 4.0% 4.5% 5.0% 5.5% 6.0% a-1. Calculate the IRR on the two projects. a-2. Calculate the NPV on the two projects. a-3. Do the two measures give the same ranking for the two projects?Consider the following returns and states of the economy for TZ.Com.: Economy Probability Return Weak 15% 2% Normal 50% 8% Strong 35% 15% What is the standard deviation of TZ's returns?
