Inherited an ordinary annuity

Assignment Help Finance Basics
Reference no: EM131899846

Today you inherited an ordinary annuity of $25000 paid at the end of the year for 15 years. You estimated a yield of 10% for this annuity. The company CASHYOUDESERVE made you an offer that you can't reject (in their own words), which is $150,000 now. Would you accept or reject this offer? Why?

Reference no: EM131899846

Questions Cloud

Discuss about the urban design knowledge : Cities are large complex dynamic systems, with more than physical attributes, and they are shaped over time by natural and created forces.
Create a new variable temp and assign it value twenty four : Create a new variable temp, and assign it the value 24. Convert the value in temp from Celsius to Fahrenheit by multiplying by 1.8 and adding 32.
What is the effective interest rate if the clinic pays : Sunshine Clinic purchases a piece of equipment for $250 with a 2-15 net 30 provision. What is the effective interest rate if the clinic pays on day 16? On day 3
Describe the advantages and limitations of each approach : You want to research whether students at NJIT take notes on their laptops during classes or actually surf the Internet.
Inherited an ordinary annuity : Today you inherited an ordinary annuity of $25000 paid at the end of the year for 15 years. You estimated a yield of 10% for this annuity.
Explain different types of yield curve-definition-examples : Explain different types of Yield Curve, definition, examples, events or when each type of yield curve happened in history.
Write a gui application with a single button : Write a GUI application with a single button. Initially, the button is labeled 0, but each time it is clicked, the value on the button increases by 1.
Projected retained earnings on the income statement : What is the projected retained earnings on the Income Statement if sales increase by 7 percent?
Explain the legal positions of tullula investments : Explain the legal positions of Tullula Investments and Italian Cuisine in relation to the law of contract, covering such issues as contract formation,

Reviews

Write a Review

Finance Basics Questions & Answers

  What will the market value will be

The company decide to issue 100 million debt to issue a project that has a NPV of 20 million. What will the market value will be?

  Your response should be at least 200 words in length for

1.what are the characteristics of a mortgage that affect the interest rates and the characteristics that affect the

  Problem of double taxation

A friend suggested that as long as she is earning about what she would have to pay someone else to run the business, she might be better off paying herself a salary instead of dividends, because she would avoid the problem of double taxation.

  Explain what is meant by the signaling effects of dividend

explain what is meant by the signaling effects of dividend

  What is the price of a par value semi-annual bond

What is the price of a $1,000 par value semi-annual bond with 11 years to maturity and a coupon rate of 3.4% and a yield-to-maturity of 6.7%?

  Four major types of business markets

Identify, describe, and give examples of the four major types of business markets.

  Indifferent to purchasing the stock

Suppose that, the president, receives a proposal for a new stock. The investment needed to take a position in the stock is $50 million, it will have an expected return of 15 percent, and its estimated beta coefficient is 2.0. Shouldthe new stock b..

  Are the differences in the ways that the two airlines

respond to the case questionsprompts listed below. these are also found in the depreciation at delta airlines and

  Find what size order pessimistic decision maker would place

Find what size order an optimistic decision maker would place. What size order would you place if you knew from past experience that each demand level is equally likely?

  What does the supply of exports curve mean

How can a country's supply and demand curves for a product be used to determine the country's supply-of-exports curve? What does the supply-of-exports curve mean?

  What is the probability that you randomly select

What is the probability that you randomly select a kid who plays a string or percussion instrument?

  Results of a picture he has painted

Sherwin Williams will receive $18,500 a year for the next 25 years as a results of a picture he has painted. If a discount rate of 12 percent is applied, should he be willing to sell out his future rights now for $165,000?

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