Calculate the present value of all future earnings

Assignment Help Mathematics
Reference no: EM131610706

Question: One way of valuing a company is to calculate the present value of all its future earnings. A farm expects to sell $1000 worth of Christmas trees once a year forever, with the first sale in the immediate future. What is the present value of this Christmas tree business? The interest rate is 1% per year, compounded continuously.

Reference no: EM131610706

Questions Cloud

How many years will the reserves be exhausted : The total reserves of a non-renewable resource are 400 million tons. Annual consumption, currently 25 million tons per year, is expected to rise by 1%.
What extent does discrimination exist in the workplace : Is it possible for an agent to assume too much power and responsibility? How can a principle limit this possibility?
Calculate the net proceeds per share : Calculate the net proceeds per share and the underwriter's spread per share on the stock offering.
External opportunities-external threats : External Opportunities, External Threats, Internal Strengths, and Internal Weaknesses. List at least three factors under each category.
Calculate the present value of all future earnings : One way of valuing a company is to calculate the present value of all its future earnings. A farm expects to sell $1000 worth of Christmas trees.
United nations and international labor organization : Describe how organizations such as the United Nations and International Labor Organization advocate basic human rights for workers.
Discuss one example of an organized crime : Discuss one example of an organized crime. Do an internet search in order to provide details of how the crime is organized by the criminals
What was the present value of the contract : Around January 1, 1993, Barbra Streisand signed a contract with Sony Corporation for $2 million a year for 10 years. Suppose the first payment was made.
Famous people of the past and present : If you could build this team with famous people of the past and present, who would you select? Explain your rationale.

Reviews

Write a Review

Mathematics Questions & Answers

  Objective questions based on regression

Objective questions based on regression.

  Describe an algorithm to find the counterfeit coin

Describe an algorithm to find the counterfeit coin and determine whether it is lighter or heavier using this number of weighings.

  Prove that the sum of two odd numbers is even

Prove that the sum of two even numbers n1 and n2 is also even.

  Find the points on the curve where the tangent is vertical

If you have a graphing device, graph the curve to check your work. Find the points on the curve where the tangent is horizontal. Find the points on the curve where the tangent is vertical.

  Estimate the stopping distance

A very small spherical particle (on the order of 5 microns in diameter) is projected into still air with an initial velocity of ν0 m/sec, but its velocity decreases because of drag forces.

  Solve the lp problem above by using two-phase method

Min Z = 3x1              2x1+x2 >= 6              3x1+2x2 = 4

  Change into symbolic notationtranslate the following into

change into symbolic notation.translate the following into symbolic notation. use for negation amp for conjunction v

  What is your average daily balance at the end of the month

If this card were using the interest rates of 30 years ago, how much interest would your card charge you this month?

  Comparing and contrasting the logistics systems

In preparation for your overall logistics White Paper Recommendation to the CEO, she has asked you to give her a "taste" of the different kinds of logistic.

  Determine water supply reservoir volume

1. Determine water supply reservoir volume for the following information:

  Find roots of auxiliary equation for homogeneous solution

Find the roots of the auxiliary equation for the homogeneous solution, listed in increasing order. Using a and b for the constants, the homogeneous solution is?

  Calculation of mean, median and mode

How often did you see your primary care physician within 15 minutes of your appointment time? Wait time includes time spent in the waiting room and exam room.

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