Fin500 Case 1 Assignment Summer 2010-Online

Fin500 Case 1 Assignment Summer 2010-Online - Southern New...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Southern New Hampshire University School of Business Summer Term, 2010—SNHU Online FIN500: Case #1 Assignment INSTRUCTOR: Dr. Gary P. Tripp Instructions: Your first case assignment is in fact a graded problem set dealing with the topics of time value of money discussed in Chapter 2 of our text. Answer all parts of all questions presented below, and please give some thought to your answers before you commence. Your report should be well-organized, type-written/word processed, and independently prepared. As indicated on your syllabus, the case report is due by the end of Week #5, or by Saturday, July 17, 2010 into the dropbox (anytime that day is fine). Good luck! 1. You are offered an investment in a local business for $500,000, and told that the business can be sold after 1 year. After-tax cash flow from the sale of the business is estimated to be $600,000. If the opportunity cost of capital is 14 percent, what is the present value of the business (net of the original cash outflow of $500,000 today)? 2. What will the following investments accumulate to (i.e., the future value (FV) of each)? a.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/14/2010 for the course FIN FIN-500-X4 taught by Professor Tripp during the Summer '10 term at Southern New Hampshire University.

Page1 / 2

Fin500 Case 1 Assignment Summer 2010-Online - Southern New...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online