Annual cash flow associated with the annuity

Assignment Help Financial Management
Reference no: EM131513473

Stanley has just been advised of a bequest of a lump sum of 121, 500 from his Aunt's will, but it is not due to be available for him for sixteen years (at t = 16 he will receive 121500). Stanley wants to receive some cash earlier than this. He is investigating the purchase of a deferred annuity with the first annual cash flow of the annuity is to be paid at the beginning of year 3 (fourteen cash flows). Assume that the annuity and the lump sum are of equivalent risk and that j_12 = 6.24% pa is the appropriate interest rate (opportunity cost of funds for Stanley). How much is the annual cash flow associated with the annuity?

Reference no: EM131513473

Questions Cloud

Draw the shear and moment curves for the footing : The combined footing shown in Figure is designed as a narrow reinforced concrete beam. The footing has been proportioned so that the resultant of the column.
Construct the shear and moment curves : The two concentrated loads, supported on the combined footing in Figure, produce a trapezoidal distribution of soil pressure.
Describe sql injection and explain how it occurs : Describe SQL injection and explain how it occurs.Describe countermeasures that can be taken to secure Java, .Net, and PHP programs/scripts from SQL injection.
Indicate whether stable or unstable : Classify the structures in Figures P5.53. Indicate whether stable or unstable. If stable, indicate whether determinate or indeterminate.
Annual cash flow associated with the annuity : How much is the annual cash flow associated with the annuity?
Learning towards your business enterprise plan : how are you applying this learning towards your business enterprise plan? with examples.
Similarities in the anti-tax avoidance measures : Assess and explain if there are any similarities in the anti-tax avoidance measures and rules between the two tax systems.
Draw the shear and moment curves produced by the beam : The corner panel of a typical floor of a warehouse is shown in Figure. It consists of a 10-in.thick reinforced concrete slab supported on steel beams.
Lump sum needed today to purchase this pension : hat is the amount of the lump sum needed today to purchase this pension?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd