Calculate the present value of this investment

Assignment Help Financial Management
Reference no: EM131892157

Goldman is offering a 10-year annuity. The first cash flow of $100 will be received one year from today. The subsequent cash flows are expected to grow at 5% per year. Assuming investors require a 9% rate of return on their investment, calculate the present value of this investment. (Round to 2 decimals)

Reference no: EM131892157

Questions Cloud

Develop skills on search strategies for research papers : Develop skills on search strategies for research papers and assessing the quality of the study paper in order to expand the scientific knowledge evidence
Description and explanation of the type of business entity : As an entrepreneur, you want to start a business. You know that the first step is to consider drafting a business plan proposal to organize all of your ideas.
Summarize the activities and duties you did this week : I490 11 Assignment: SUMMARY. Summarize the activities/duties you did this week and relate them to the classes you have taken
Determine the power consumption in watts : Determine the power consumption in watts. Report 2 decimals.
Calculate the present value of this investment : Assuming investors require a 9% rate of return on their investment, calculate the present value of this investment.
Think about changing dynamics in the marketplace : Think about changing dynamics in the marketplace, and how managers need to be thinking about future trends and potential competition.
What is the length of the diameter : (a) What is the length of the diameter? Give the exact answer, simplified as much as possible. Show work.
Discuss the community efforts and managing public relations : Discuss the Community Efforts and Managing Public Relations. Compose a tweet and a Facebook post (200-250 words) creating awareness for the event.
What shape is formed : Suppose that the length of the rope is 8 meters. On how many square meters of land is the goat able to graze? What shape is formed?

Reviews

Write a Review

Financial Management Questions & Answers

  In a transaction for the sale of an auto painting facility

In a transaction for the sale of an auto painting facility, Bright Auto Colors Company tells Custom Cars Corporation that the paints and other supplies on-site are included. The contract says nothing about the supplies on-site, but does state, “This ..

  Used as initial cash flow for project

Kelly's Corner Bakery purchased a lot in Oil City six years ago at a cost of $278,000. Today, that lot has a market value of $264,000. At the time of the purchase, the company spent $6,000 to level the lot and another $8,000 to install storm drains. ..

  Given that you are rolling your services out in a foreign

given that you are rolling your services out in a foreign country there will be a need to learn from other companies

  What would the risk-free rate have to be for the two stocks

Stock Y has a beta of 1.4 and an expected return of 17.0 percent. Stock Z has a beta of 0.7 and an expected return of 10.1 percent. What would the risk-free rate have to be for the two stocks to be correctly priced?

  What is the firms after-tax cost of debt

5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,200 face value and a 8% coupon, semiannual payment ($48 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what ..

  Payoffs without any cost or risk using arbitrage portfolio

Suppose there are two states of nature in the future. In the asset market, there are the two contingent claims, one for each state. There’s a third security with payoffs x=(4,2). What is the payoff matrix X of the asset market? Is the market complete..

  Able to make the desired withdrawals at retirement

what amount must she deposit annually to be able to make the desired withdrawals at retirement?

  Identify the arbitrage opportunity

Identify the arbitrage opportunity and carefully describe how you would profit off of it.

  What is their equity cost of capital

Sports Unlimited is expected to generate free cash flows of $10.9 million per year. If XL’s debt cost of capital is 5%, what is their equity cost of capital?

  What is the stocks expected price two years from today

If its required return is 14%, what is the stock's expected price 2 years from today?

  Decided to become a beautician after leaving high school

Rachel Bells Havens is a friend of yours from high school. She decided to become a beautician after leaving high school, rather than to attend college. She recently opened her own shop, and has contracted her services to a local hospital. She is paid..

  Use the afn equation to forecast additional funds

Skateboard sales are expected to increase by 15% from $8million un 2013 to 9.2million in 2014. It assets totaled $5million at the end of 2013. We are already at full capacity, so the assets must grow at the same rate as projected sales. Use the AFN e..

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