How much is this annuity worth 5 years from now

Assignment Help Finance Basics
Reference no: EM131975477

A six-year annuity of $10000 quarterly payments will begin 8 years from now. The discount rate is 9%, compounded quarterly.

a. How much is this annuity worth 5 years from now?

b. How much is this annuity worth today?

Reference no: EM131975477

Questions Cloud

Find the firm typical value for accounts receivable period : A firm offers terms of 3/50, net 80. Currently, two-thirds of all customers take advantage of the trade discount; the remainder pay bills at the due date.
How much would you be willing to pay for each of investment : If the required return for both is 8%, which one do you prefer? How much would you be willing to pay for each of these investments?
Create in general journal format entry to record issuance : On September 1, 2017, Windsor Company sold at 104 (plus accrued interest). Create in general journal format the entry to record the issuance of the bonds.
What is the net present value of more attractive alternative : A firm that purchases electricity from the local utility for $200,000 per year is considering installing a steam generator at a cost of $290,000.
How much is this annuity worth 5 years from now : A six-year annuity of $10000 quarterly payments will begin 8 years from now. The discount rate is 9%, compounded quarterly.
Calculate the unit cost : During November, 9,600 components were completed. There is no beginning or ending WIP in any department. Calculate the unit cost
What date will settlement take place : If the enter into FRA on the date 2018/04/16 , on what date will settlement take place?
Find the depreciation tax shield for the project : Your firm needs a machine which costs $220,000, and requires $37,000 in maintenance for each year of its 3 year life.
Prepare the journal entry for grouper for the sale : Prepare the journal entry for Grouper for the sale of the first 93 stations. The cost of each station is $59.

Reviews

Write a Review

Finance Basics Questions & Answers

  Organization is developing a business plan

Scenario: An organization is developing a business plan. The intent of the organization is to provide a service for a community in need, but it appears they might have trouble obtaining financing. The board is trying to decide whether to be transp..

  Calculate the following debt and coverage ratios for the

the relationship between financial leverage and profitability pelican paper inc. and timberland forest inc. are

  On july 6 of 2012 the price of a stock traded at 16513 per

on july 6 of 2012 the price of a stock traded at 165.13 per share. its call option had a strike price of 165 and

  The sarbanes-oxley act changed the rules and practices of

the sarbanes-oxley act changed the rules and practices of the accounting profession drastically . discuss the changes

  Role of government in international trade

Explain the role of government in international trade, the various levels of economic integration, and the impact on international marketing.

  How much profit can you earn using triangle arbitrage

Currently, you can exchange $1 for 100.37 yen or €0.7538 in New York. In Tokyo, the exchange rate is ¥1 = €0.0077. If you have $1,200, how much profit can you earn using triangle arbitrage?

  Calculate the accounting rate of return

Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash inflows are expected to be $25,000 and $75,000, respectively. Mimi's minimum required rate of return is 10%

  What is the mirr for the project

Bebe is thinking about purchasing a new clam maker for $14,000. The expected net cash flows resulting from the digger are $9,000 in year 1, $12,000.

  Donner inc will finance a proposed investment by issuing

donner inc will finance a proposed investment by issuing new securities while maintaining its optimal capital structure

  What is golden weighted average cost of capital

You need to estimate the equity beta for Golden Chemical, Inc. Golden's debt-to-asset ratio is 20%, and its debt beta is 0.25.

  Obtaining fund from venture capital firm and engaging in ipo

Explain the difference between obtaining funds from a venture capital firm and engaging in an IPO. - Explain how the IPO may serve as a means by which the venture capital firm can cash out.

  Perform a one-tailed test

A random sample of students completed the course, and their mean SAT score in mathematics was . At the level of significance, can we conclude that the preparation course does what it claims? Assume that the standard deviation of the scores of cour..

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