Perpetual stream of annual payments

Assignment Help Finance Basics
Reference no: EM1364279

Given an interest rate of 10% per year, what is the value at the end of 5 years of a perpetual stream of 120$ annual payments starting at the end of year 9?

I dont understand the time fator in this question - i.e how do you encorporate year 9 and year 5 into the appropriate formula

 

Reference no: EM1364279

Questions Cloud

Write command to list all the employees in year : Write the command to list all the employees hired in 2003 and 2004. Sort the rows by the hire_date column in descending order.
Implementation and sustainability of health programs : Show the importance of accountability in the implementation and sustainability of health programs
Compute by how much monetary policymakers must change : Compute by how much monetary policymakers must change the nominal money supply for the expectations of firms and workers to be realized.
What is the frequency of the string : When a guitar string is sounded along with a 441-Hz tuning fork, a beat frequency of 4.00 Hz is heard. When the same string is sounded along with a 437-Hz tuning fork, beat frequency is 8.00 Hz. What is the frequency of the string.
Perpetual stream of annual payments : Given an interest rate of 10 percent per year, what is the value at the end of five years of a perpetual stream of 120$ annual payments starting at the end of year 9?
Explain benefits of a global market : What are some of the benefits of a global market and why? List at least 2 benefits, weighing any short-term and long-term impacts.
What are the basic functions of managing the data resource : What are the basic functions of managing the data resource and How are these functions different in a global company as opposed to an exclusively local company?
Applying course concepts and enterting : Discuss how the concepts of this course can be applied to your current or future work position. Discuss whether or not you feel adequately prepared to enter the accounting profession as a Certified Public Accountant.
When aimed vertically and suddenly released : Three charges are situated at corners of a rectangle. How much energy would be expended in moving the 8µC charge to infinity.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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