A company has profits of $38,982 this year and expects profits to decrease by $1,728 dollars per year over the next 12 years. If the profits will be continuously invested in an account bearing 6.2% APR compounded continuously, what is the 12-year present value of this income stream?
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A company has profits of $38,982 this year and expects profits to decrease by $1,728 dollars per year over the next 12 years. If the profits will be continuously invested in an account bearing 6.2% APR compounded continuously, what is the 12-year present value of this income stream?
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- A company has profits of $393,000 this year and expects profits to decrease by 4% per year over the next 12 years. If the profits will be continuously invested in an account bearing 7% APR compounded continuously, what is the 12-year present value of this income stream? Round your answer to two decimal places. Do not include units.Consider a company that is projected to generate revenues of $104 million next year. Analysts expect revenues to grow at a 4.6% annual rate for the following two years (until the end of year 3) and then at a stable rate of 2.5% in perpetuity. If the company is expected to have a gross margin of 75%, operating margin of 35%, net margin of 25%, tax rate of 16.4%, and reinvestment rate of 34%, what is its expected free cash in four years from today? Answer in millions, rounded to one decimal placeWhat is the projected level of revenue in 3 years for a company with current revenues of $48.25 million if estimated growth under continuous compounding is 8.6 percent?
- Company Z showed a profit of $1.5 billion last year. The CEO of the company expects the profit to increase by 0.25 billion dollars per year over the next seven years and the profits will be continuously invested in an account bearing a 6.1% APR compounded continuously. What is the seven-year present value? The units of your answer should be billion dollars. Input your answer to three decimal places. 4.919Today (n=0), a company invests $1,000 and expects that investment to grow 10% each period for the next six periods (n=6). What is the investment's expected future value?If a company expects to increase sales by $7,000 per year over a 10-year planning horizon, what will be the cash flows at the end of every year?
- a firm has constant profits of $100,000 per year for the next four years and the interest rate is 6 percent assume profits are realized at the end of each year, what is the present valueIf a $31,000 investment grew to $43,005 in 6 1/2 years of quarterly compounding, what effective rate of return was the investment earning?Annual revenues in our company are $1.5 million this year. If they are expected to grow at a compounded rate of 20% per year, what will they be 10 years from now? (a) $3.89 million (b) $9.29 million (c) $10.9 million (d) $57.51 million
- Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE? (Show your work) Assets = $200,000 D/A = 65% EBIT = $25,000 Interest rate = 8% Tax rate = 40%Company A had a profit of $2 million last year. This company expects the profit to increase by 6% each year over the next 5 years and will reinvest all of the profits in an account earning 4% compounded continuously. Assume a continuous income stream. Write the income stream function, R(t), that expresses how quickly they will invest their profit. R(t) million dollars per year =A $90,000 investment is made at t=0, and returns are realized over a 5-year period. A return of $30,000 occurs at the end of the first year. Each successive year yields a return that is 12% less than the previous year's return. If money is worth 5%, what is the equivalent present worth for the investment? $