Determine what is the present value of all future payments

Assignment Help Financial Econometrics
Reference no: EM13329239

Kelly Greene has a contract in which she will receive the following payments for the next five years: $4,000, $5,000, $6,000, $7,000 and $8,000. She will then receive an annuity of $10,000 a year from the end of the 6th through the end of the 15th year. The appropriate discount rate is 15 percent.

What is the present value of all future payments?

Reference no: EM13329239

Questions Cloud

What is the firm marginal cost at 500 tacos : Taco Bell gives free tacos from 2 - 5pm. Suppose they make 500 tacos per hour and total costs are $1000. Assume the firm is operating at minimum costs.
What is the ph at the points in the titration : Calculate the pH at the points in the titration of 40.00 mL of 0.425 M NH3 for the reaction below. NH3(aq) + HNO3 ? NH4+(aq) + NO3?(aq) For NH3, Kb = 1.8x10-5. Enter your answer with 2 decimal places.
Arise in u.s. inflation causes many u.s. residents to buy : Arise in U.S. inflation causes many U.S. residents to buy gold, which is a major South African export good, as a hedge against inflation.
Can you name any industries where the government sets price : If the government steps in to regulate a market, setting a price floor above the free market equilibrium price, will demand increase or decrease compared to the free marker equilibrium? Can you name any industries where the government sets price floo..
Determine what is the present value of all future payments : Kelly Greene has a contract in which she will receive the following payments for the next five years: $4,000, $5,000, $6,000, $7,000 and $8,000. She will then receive an annuity of $10,000 a year from the end of the 6th through the end of the 15th..
What is ha is a weak monoprotic acid : If 67.0 mL of 0.119 mol/L NaOH(aq) and 35.0 mL of 0.193 mol/L HA(aq) are mixed, then what is [HA] at equilibrium? Assume that HA is a weak monoprotic acid with pKa=6.23 at 25oC
Trial balance of watteau : Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750 and the purchase of a computer printer on account for $500 was recorded as a debit to Suppl..
Determine the present value of an annuity due per year : Determine the present value of an annuity due of $1,000 per year at 10 years discounted back to the present at an annual rate of 10 percent. What would be the present value of this annuity due
Define hi(aq) required to reach the equivalence point : The volume of HI(aq) required to reach the equivalence point : (1c) The pH at the half-neutralization point. (1d)The pH at the equivalence point.

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Determine what is geometric return over the period

Your grandfather invested $1,000 in a stock 27 years ago. Currently the value of his account is $226,000. What is his geometric return over this period

  Describe how the economy is performing on investment

Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing.

  How long will it take joey to pay off the debt

Joey realizes that he has charged too much on his credit card and has racked up $5,600 in debt. If he can pay $150 each month and the card charges 17 percent APR (compounded monthly),

  Determine what is the amount of each payment

The Good Life Insurance Co. wants to sell you an annuity which will pay you $640 per quarter for 25 years. You want to earn a minimum rate of return of 4.9 percent.

  Determine what is the projects net present value

The company estimates the project would cost $8 million today. Karns estimates that, once drilled, the oil will generate positive net cash flows of $4 million a year at the end of each of the next 4 years.

  Compute the present value of a 100 dollars cash flow

Present value: Compute the present value of a $100 cash flow for the following combinations of discount rates and times r= %8 , t=10 years

  Determine what is the stocks growth rate per share

A firm's recent dividend was $2.00 per share. The stock is selling in the market place for $50.00 per share. If investors are demanding 10% on this stock, what is this stock's growth rate

  What is the monthly payment that is beyond the means

You have found a Toyota Sienna priced at 34,400. The dealer has told you that if you can come up with a down payment of 3,300, he would be willing to finance the balance at an EAR of 5.65%.

  What is the total dollar amount will need at closing

Dick and Jane (and their dog Spot) have just purchased a house and are calculating how much money they will need when the closing day rolls around. The purchase price is $150,000.

  Determine what is qms weighted average cost of capital

If the cost of common equityfor the firm is 17.1%, the cost of prefered stock is 9.3%, the before tax cost of debt is 7.7% and the firms tax rate is 35%, what is QM's weighted average cost of capital

  Determine what are the alternatives in the instance

Your current supervisor has asked for your assistance with shredding some office documents. You have some understanding of the records retention policy for your company

  Determine what is capitals after-tax wacc

If the returns required by investors are 10 percent, 13 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capital's after-tax WACC. Assume that the firm's marginal tax rate is 40 percent.

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