Calculate the present value

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Sochi, Russia is the site of the next Winter Olympics in 2014. City officials plan to build a new multipurpose stadium. The projected cost of the stadium in 2014 dollars is $7.5 million. Assume that it is 2011 and city officials intend to put away a certain amount at the end of each of the next 3 years in an account that will pay 8.75 per cent. What is the annual payment necessary to meet this projected cost of the stadium?

You have just won a lottery that promises an annual payment of $118312 beginning immediately. You will receive a total of 10 payments.

If you can invest the cash flows in an investment paying 7.65 per cent annually, what is the present value of this annuity?

Groves Pty Ltd is expecting annual cash flows of $225000, $278000, $312500, and $410000 over the next 4 years. If it uses a discount rate of 6.25 per cent, what will be the present value of this cash flow stream?

Calculate the present value of the following perpetuities:

a. $1250 discounted to the present at 7%

b. $7250 discounted to the present at 6.33%

c. $850 discounted to the present at 20%

5. Greg Woolmer has an investment that will pay him the following cash flows over the next five years: $2350, $2725, $3128, $3366, and $3695. If his investments typically earn 7.65 per cent, what is the future value of the investment's cash flows at the end of 5 years?

Reference no: EM132794267

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