Present value of an annuity

Assignment Help Financial Management

Reference no: EM131599645

Find the present values of these ordinary annuities. Discounting occurs once a year. Round your answers to the nearest cent.

$900 per year for 12 years at 14%.

$450 per year for 6 years at 7%.

$600 per year for 12 years at 0%.

Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.

$900 per year for 12 years at 14%.

$450 per year for 6 years at 7%.

$600 per year for 12 years at 0%.

Reference no: EM131599645

Questions Cloud

Future value of an annuity : Your client is 25 years old. She wants to begin saving for retirement, with the first payment to come one year from now.

Return on capital-reinvestment rates for last fiscal year : Assume that the firm is in stable growth, and that the return on capital and reinvestment rates for the last fiscal year can be sustained forever.

How much will the annual interest paid by firm be reduced : If the interest rate on the firm's borrowed funds is 4.5% p.a., by how much will the annual interest paid by the firm be reduced?

Diminish the operating margin or the capital efficiency : Discuss one likely future event that could improve (or diminish the operating margin or the capital efficiency.

Present value of an annuity : Find the present values of these ordinary annuities. Discounting occurs once a year.

Fatcat resist these temptations and maximize firm value : Mr. Fatcat manages a large corporation. What motivating influences can help Mr. Fatcat resist these temptations and maximize firm value?

Create value for shareholders in the long term : Do activist investors like Daniel Loeb create value for shareholders in the long term?

What is firm weighted average cost of capital : What is the firm’s weighted average cost of capital (WACC2) if it has to issue new common stock?

Estimate made from the three estimation methodologies : What is the cost of new common equity considering the estimate made from the three estimation methodologies?

User Account

All Pages