Present value of an annuity due with same length of life

Assignment Help Financial Accounting
Reference no: EM131336938

If the present value of an ordinary, 10 year annuity is $20,000 and interest rates are 5%, what is the present value of an annuity due with the same length of life, present values and interest rate?

Reference no: EM131336938

Questions Cloud

Use the life table approach to estimate survival function : A study is conducted to estimate survival in patients following kidney transplant. Key factors that adversely affect success of the transplant include advanced age and diabetes. Use the life table approach to estimate the survival function
Estimate the heat transfer rate to the plate : Approximate the liquid properties as those corresponding to saturated conditions at 373 K
Marketing research firm with annual cash inflows : A marketing research firm with annual cash inflows of $800 does not expect any growth in annual cash inflows over the next two years. The company, however, anticipates that annual cash outflows, currently at $150 will increase to $240 in year 1 and t..
Calculate the dollar weighted return-time weighted return : An investment manager has returns for the first six years of the year as follows: Calculate the time weighted return. calculate the dollar (money) weighted return.
Present value of an annuity due with same length of life : If the present value of an ordinary, 10 year annuity is $20,000 and interest rates are 5%, what is the present value of an annuity due with the same length of life, present values and interest rate?
What would be the loan balance : Instead, you opt to purchase a 10-Inch 4K Ultra HD 120Hz Smart LED TV for $149,980 (yes, it’s really there) by getting a loan for $120,980 and paying a $29,000 down payment. You can get a 10-year loan with a 3.6% interest rate. A. What would be your ..
The current market price using cash : Waysafe Inc. consists of two grocery stores. The first store is fairly valued at $60M and the second store, valued at $50M, could be torn down and then the land could be sold for $75M. You quietly purchase 5 percent of this firm at the current market..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Plan to analyze the value of a potential investment

a. The cash flows are in the form of a deferred annuity, and they total to $100,000. You learn that the annuity lasts for only 5 rather than 10 years, hence that each payment is for $20,000 rather than for $10,000.

  What impact would the new capital structure

What impact would the new capital structure have on the firm's net income, total dollar return to investors, and ROE and redo the analysis, but now assume that the debt financing would cost 15 percent.

  Compute the amount of interest

Compute the amount of interest during 2012, 2013, and 2014 for the following note receivable: On May 31, 2012, TMRN Bank lent $220,000 to Bob Morrison on a two-year, 8% note.

  How much revenue each month does the machine need

How much revenue each month does the machine need to produce for you to earn $450 after taxes each month? After making your computations does this seem like a good business venture for you?

  How much gain resulted from the sale

XYZ then had a 2-for-1 stock split. - After the split, the person sold 100 shares for $7,000. How much gain resulted from the sale?

  Identify which of the expenses are deductible and indicate

Identify which of the expenses are deductible, and indicate whether they are deductions for or from AGI.

  What are the tax consequences to euclid

What are the tax consequences to Euclid from the following independent events. Euclid bought 500 shares of common stock five years ago for $94,000. This year, Euclid receives 20 shares of common stock as a nontaxable stock dividend.

  Subsidiary income and noncontrolling interest

Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest in subsidiary income, noncontrolling interest, Calvin’s machine (net of accumulated depreciation), and the process trade se..

  Firms wants their firms logo on package-traditional costing

The management of Pacific Wellness Centre, a health food company, recently wants to analyze the cost of two of its famous customized products. The customization is not so much on the content but rather on the packaging as some of the firms wants thei..

  What was the cost of goods sold if the lifo method

Assuming the periodic inventory system is in use, what was the Cost of Goods Sold if the LIFO Method is used and Assuming the periodic inventory system is in use, what is the value of ending inventory if the LIFO Method is used?

  Replace the existing system with a progressive tax system

Replace the existing system with a progressive tax system that would tax business and individuals, using these schedules:

  Discuss the factors that zapphire and newco should consider

Explain how each of the instruments works and indicate how they could be used to hedge against interest rate movements and list the factors that Newco should consider in selecting one of the two instruments in order to hedge its interest rate exposu..

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