How much is the sum of the present value of expected return

Assignment Help Accounting Basics
Reference no: EM133171707

Question - A new investment is expected to return $15,000 per year, starting from next year (t=1) for ten periods (i.e., from t=1 to t=10). Thus, the sum of the expected returns over those periods is $150,000. How much is the sum of the present value of the expected return over those periods, assuming that the annual interest rate is 5%?

Reference no: EM133171707

Questions Cloud

Compute value-at-risk for abc ltd : Returns of both shares follow a normal probability distribution and abnormally bad market conditions are expected 5 per cent of the time. Compute Value-at-risk
Calculate equilibrium expected returns for stocks a and b : Expected return on the market portfolio is 10%, the risk-free rate is 6%. Calculate equilibrium expected returns for stocks A and B
What percentage of the total interest has been paid : After 29 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)
Prepare an income statement using variable costing : Dion produced 21,600 units, and 2,800 units remain in ending finished goods inventory for May. Prepare an income statement using variable costing
How much is the sum of the present value of expected return : Thus, the sum of the expected returns over those periods is $150,000. How much is the sum of the present value of the expected return
What is the cost of food consumed dollars : The following information was collected at the end of the month: Food Sales $122,330 Cooking Liquor $400. What is the Cost of Food Consumed dollars
Assess the major ethical issues in japan : The Goal: Research and assess the major ethical issues in Japan
What is the importance of data analysis : Question 1: What is the importance of data analysis? Question 2: How did adding visual representations of the data change your analysis?
What is the lowest amount of external revenue : The combined total assets of all operating segments at year-end amounted to P56,000,000. What is the lowest amount of external revenue

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.

  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!

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