Determine what is the present value of the risk

Assignment Help Financial Econometrics
Reference no: EM13327887

An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $600 at the end of Year 6.

If other investments of equal risk earn 12% annually, what is its present value?

If other investments of equal risk earn 12% annually, what is its future value?

Reference no: EM13327887

Questions Cloud

The case analysis investigates issues : The case analysis investigates issues involving the National Education Association (NEA), because it is one of the few remaining unions with some power. The students will select and summarize an article from Lexis-Nexis about the NEA. What is the mai..
What is the thinnest wall thickness of the bubble : a beam of white light is shined at normal incidence onto the outside of a soap bubble(index of soap solution = 1.340). What is the thinnest wall thickness of the bubble
A research project focused on a specific problem : Create a "mini-proposal" which outlines a research project focused on a specific problem
Explain a generic salt ab3 has a molar mass : A generic salt, AB3, has a molar mass of 183 g/mol and a solubility of 6.60 g/L at 25 °C. What is the Ksp of this salt at 25 °C
Determine what is the present value of the risk : An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $600 at the end of Year 6.
What is the resistance of a typical water heater : On average, an electric water heater operates for 1.2 h each day. It has a power requirement of 4500 W, What is the resistance of a typical water heater
Potential disadvantages to mediation : Alexander is involved in a dispute related to his business. Alexander is considering legal action. What are some reasons it may be advantageous to Alexander’s business to avoid litigation and mediate the case? Are there some potential disadvantages t..
How does information systems help organizations : How does Information Systems help organizations? How do functional departments within an organization communicate and share information?
Find coefficient of static friction between bag and carousel : The drive motor is shifted to turn the carousel at a higher constant rate of rotation, Calculate the coefficient of static friction between the bag and the carousel

Reviews

Write a Review

Financial Econometrics Questions & Answers

  How to rank the bonds on the basis of the price volatility

Compute the duration for bond C, and rank the bonds on the basis of their price volatility. The current rate of interest is 8 percent, so the prices of bonds A and B are $1,000 and $1,268 respectively.

  What annual rate of return is implied on loan taken

What annual rate of return is implied on a $700 loan taken next year when $800 must be repaid in year 3

  Calculate the npv of the investment for 10 years

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.20 million.

  What is the future value of these investment cash flows

Trigen Corp. management will invest cash flows of $1,263,837, $548,573, $1,448,382, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years.

  What is the loans effective annual rate -ear

A loan is offered with monthly payments and a 7.50 percent APR. What's the loan's effective annual rate (EAR)

  What is cost of equity capital with a new capital structure

A firm has zero debt in its capital structure. Its overall cost of capital is 10%. The firm is considering a new capital structure with 80% debt. The interest rate on the debt would be 8%.

  How much in usd value did you receive when you sold coupon

A 10-year coupon (paid semianually) bond has a face value of $1000, you buy it at par and sell it one year later for a 6% yield to maturity. how much in USD value did you receive when you sold it

  Find and depict on a time line the relevant cash flow stream

Lasting Impressions Company: Lasting Impressions (LI) Company is a medium-sized commercial printer of promotional advertising brochures, booklets, and other direct-mail pieces.

  Mergers and acquisitions or financial ratio analysis

Argue for or against an established theory involving Mergers and Acquisitions or Financial Ratio Analysis and argue for or against your own theory involving Mergers and Acquisitions or Financial Ratio Analysis

  What is the allocation rate if housekeeping services is used

The housekeeping departmenent at ricardo clinic, a multispecialty practice in Corpus christi had 152318.00 in direct cost during last year. These costs must be allocated to three revenue producing patient serices departments using the direct meth..

  Summarize and execute detailed description of the securities

Students will construct a well-diversified portfolio using an initial investment stake of $50,000 (the portfolio should use 95% of the fund, but they may not use more than $50,000).

  Determine what is the accounts receivables turnover rate

Walther Enterprises has accounts receivable of $52,700, total assets of $269,250, cost of goods sold of $147,900 and a capital intensity ratio of 1.25. What is the accounts receivables turnover rate

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