User Account

All Pages

Calculate the total present value of these payments

Assignment Help Accounting Basics
Reference no: EM132499979

Question - ABC Company sold the rights to use one of their patented processes that will result in them receiving cash payments of $6,000 at the end of each of the next five years, an $8,000 cash payment at the end of the sixth year, and a $10,000 cash payment at the end of the seventh year.

Calculate the total present value of these payments assuming the interest rate is 6% compounded annually.

Reference no: EM132499979

Questions Cloud

Domestic market for calculators : The domestic market for calculators is perfectly competitive and is in equilibrium.
What each current shareholder have to provide to purchase : Currently there are 1.5 million shares outstanding. What will each current shareholder have to provide to purchase one share of this new offering?
Equilibrium price and quantity of apartments rented : The demand function for rental apartments is D(p) = 900-p, and the supply function is S(p) = 200 + p.
Did your parents use the same style with you : You've been learning about parenting styles in Chapter 12 of the text. How would you classify your parents' child-rearing style(s) with you when you were.
Calculate the total present value of these payments : A $10,000 cash payment at the end of the seventh year. Calculate the total present value of these payments assuming the interest rate is 6% compounded annually
Compute and draw the contract curve : Consider an exchange economy with two goods (x and y) and two agents (a and b). Agent a has preferences represented by ua(xa, ya) = xaya and endowment
Calculate the number of units Minden Company must sell : Assume these changes are made. Calculate the number of units Minden Company must sell in 2021 in order to break-even
How shifts in the domestic supply curve for product subject : Tariffs are usually imposed in order to decrease imports, but they don't always have the same effect. Please draw graphs that demonstrate how shifts
Calculate the amount of interest Betty DeRose earn : Assume the savings account will earn 10% interest compounded semi-annually. Calculate the amount of interest Betty DeRose will earn over the eight year period

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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