User Account

All Pages

Determine the present value of a perpetuity

Assignment Help Business Economics
Reference no: EM133067351

1.) If money is worth 8%, determine the present value of a perpetuity of P1,000 payable annually, with the first payment due at the end of 5 years.

2.) A man is left with an inheritance from his father. He has an option to receive P2 M at the end of 10 years, however he wishes to receive the money at the end of each year for 5 years. If interest rate is 8%, how much would he receive every year?

Reference no: EM133067351

Questions Cloud

How many payments are required to settle the loan : General Computers Inc. purchased a computer server for $58,000. How many payments are required to settle the loan
Examine the reductionist thinking and social ruthlessness : Carefully examine the reductionist thinking and social ruthlessness of those (the World Bank and IMF included) spearheading the drive to 'commodify' water.
Prepare the journal entries to record the transactions : Darby Corporation receives its annual property tax bill in the amount of $10,500 on May 31. Prepare the journal entries to record the transactions
Find total costs of production : Suppose you produce Jeans and an individual walks into your store. The table below gives this individual's demand for your jeans, as well as your total costs of
Determine the present value of a perpetuity : 1.) If money is worth 8%, determine the present value of a perpetuity of P1,000 payable annually, with the first payment due at the end of 5 years.
Explain the dramatic rise in price of a college education : -College enrollments increased at the same time that average tuition rose dramatically. Does this contradict the law of downward-sloping demand?
What is the proper cash flow amount : What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? Explain. (Ignore tax effect.)
What is the current dividend per share : If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share
After-tax interest rate on loan : To increase its market share, Sole Brother Inc. decided to borrow $50,000 for more advertising for its shoe retail line. The loan is to be paid in four equal an

Reviews

Write a Review

Business Economics Questions & Answers

  Ability for a monopoly firm

1. The ability for a monopoly firm to increase its price depends mainly on?

  Cost of a leading liquid laundry detergent

The cost of a leading liquid laundry detergent in different sizes is given below.

  Crowded out as result of increase in government spending

Use the algebraic form of the aggregate demand curve to find the level of GDP that occurs when the money supply is $900 billion and government spending is $1200 billion. Repeat all the previous calculations if government spending increased to $1300 b..

  Show the substitution effect and the income effect

Emma spends all her money on sneakers and coffee. Emma’s budget is $50 and the price of sneakers is $10. The optimal bundle for Emma varies with the price of coffee and is as follows: According to the information above what is the price of coffee in ..

  Security policies and implementation issues

Consider the privacy and protection acts in chapter 3 of Security Policies and Implementation Issues.

  Consistently prefers more police protection to less

Carborro has 3 equal sized groups of people: Type A consistently prefers more police protection to less; Type B prefers high levels of police protection to low levels and they prefer low levels to medium levels.  Will majority voting generate consist..

  Who would be the winners and losers

Landlords are not popular. The Government asks you to advise it on the merits of rent controls.

  Contributes to the growth of total expenditures for care

Asked another way, do you believe that insurance leads to excessive use of healthcare services and contributes to the growth of total expenditures for care?

  Find the marginal utility of x and y

Maria is the only person in an island, and she has an endowment of 14 units of X and 7 units of Y.

  What law believes that law is simply the commands

What law believes that law is simply the commands of the state backed up by force and punishments? Which idea of law tries to go beyond just the words of law to examine what police, administrators, prosecutors, and judges are actually doing as they e..

  Calculate the towns labor force participation rate

Calculate the town's labor force participation rate. At the beginning of 2018, a town has 152,000 employed people and 8000 unemployed people.

  Identify for a closed economy

Then, show the identity between national savings (i.e. the sum of private savings and government savings) and investment. You must show all of the steps.

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