Calculate the present value today of annuity

Assignment Help Finance Basics
Reference no: EM132627353

April Stigum will receive a 10-year annuity of $5,000 per year, beginning 5 years from today. In other words, the first payment will be made at the end of year 5. Assuming a required rate of return of 6%, calculate the present value today of her annuity. (Enter a positive value and round to 2 decimals)

Reference no: EM132627353

Questions Cloud

Internal rate of return-bangladesh petroleum : Bangladesh Petroleum's 10% coupon rate, BDT 1000 par value bonds that mature in 10 years are callable 6 years
Organization quality management processes : Explain the Joint Commission's role in the evaluation of an organization's quality management processes.
Explain the problem regarding the dobbins distillery case : Explain the problem regarding the Dobbins Distillery Case, The managers of Dobbins Distillery have increased production by fifty percent in 1988
Initial value of? gladstone equity without? leverage : Gladstone Corporation is about to launch a new product. Depending on the success of the new? product, Gladstone may have
Calculate the present value today of annuity : Assuming a required rate of return of 6%, calculate the present value today of her annuity. (Enter a positive value and round to 2 decimals)
Compare and contrast exercise procedure for stock options : Compare and contrast the exercise procedure for stock options with that for index options.
Calculate the revised profit with direct labour : Calculate the revised profit (after the directors' changes) with direct labour as the limiting factor of production, if the advertising campaign
Investment decisions or relevant cash flows : Rehman Company is contemplating the purchase of new high speed widget grinder to replace the existing grinder.
Find bond current yield and yield to maturity : If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places.

Reviews

Write a Review

Finance Basics Questions & Answers

  Estimate seven-year life and no salvage value

On April 2, 2015, Montana Mining Co. pays $4,431,830 for an ore deposit containing 1,502,000 tons. The company installs machinery in the mine costing.

  Find the indicated probability

Assume that X has a normal distribution, and find the indicated probability. The mean is 15.2 and the standard deviation is 0.9. Find the probability that X is greater than 17.

  Estimate the minimum variance portfolio

You are an analyst working for a major stock broking firm. Estimate the minimum variance portfolio. Create Histogram for the two NZ50 companies

  Graph the one-month commercial paper rates

Graph the one-month commercial paper rates. What happened to the interest rate on commercial paper in the fall of 2008? Explain this change in the commercial paper market in the context of the financial panic occurring during the fall of 2008.

  The hugh co expects to pay a cash dividend of 25 per share

the hugh co. expects to pay a cash dividend of 2.5 per share next year. investors require a 14 return from investments

  Funding of higher education

Discuss and explain how the funding of higher education can be divided up by the following main sources?

  Revoke one-fourth of the trust

On January 15th, Linus transfers property to a trust over which he retains a right to revoke one-fourth of the trust.

  What advice would you give to the conference manager

The conference department of the MerryWeather hotel in Inverness, Scotland has fixed costs of £360 per day. A local university is seeking a quote in connection.

  Should your company purchase the dump truck

The operator costs $22.00 per hour. Using 1,000 billable hours per year determine the net present value for the purchase of the dump truck using a MARR of 18%. Should your company purchase the dump truck?

  Incorporate a product strategy on coca cola

Select the Foreign Country of your choice with a brief size description and main economic and social factors

  Multinational financial management

From the e-Activity, determine key reasons why a multinational corporation might decide to borrow in a country such as Brazil, where interest rates are high, rather than in a country like Switzerland, where interest rates are low. Provide support for..

  Differences between a recombining and non recombining tree

Discuss how a binomial model accommodates the possibility of early exercise of an option. Explain the differences between a recombining and non-recombining tree. Why is the former more desirable?

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