Captiva Oil and Gas Co. has discovered a small gas field that is expected produce cash flows of 92500 per quarter beginning next quarter. To being operations, an initial investment of 745000 in necessary. However it is expected that this cash flow will decrease by 4 percent per year; adjusted quarterly. That is, this decrease is expected to be 1% per quarter. Assuming a 12 percent per year discount rate and that the gas field will produce gas into the foreseeable future, how much are these operations worth?
I want to buy a 23,500 boat in cash, so I started saving money 3 years ago currently have 3200 in my savings account starting today I will put 500 a month in this account the rate of return is 2.5 percent compounded monthly how long until I can buy my boat?
A 20 year loan in the amount of 115000 is to be repaid in equal monthly payments. The interest rate is 7 percent compounded monthly what is the amount of interest that is included in the loan payment for month 3?