User Account

All Pages

What is most he should pay to purchase this payment today

Assignment Help Accounting Basics
Reference no: EM133172449

Question - Personal Finance Problem - Jim Nance has been offered an investment that will pay him $460 three years from today.

a. If his opportunity cost is 9% compounded annually, what value should he place on this opportunity today?

b. What is the most he should pay to purchase this payment today?

c. If Jim can purchase this investment for less than the amount calculated in part (a), what does that imply about the rate of return that he will earn on the investment?

Reference no: EM133172449

Questions Cloud

What is its post-money value : If the company has 2,8 million shares outstanding prior to the purchase, what is the company's pre-money value? What is its post- money value
What was the percent change in the TT : How much did the TT$ change in percentage terms relative to the U.S. dollar? That is, if you hold US dollars, what was the percent change in the TT$
What communication skills will the agent use : What communication skills will the agent use? Explain what the agent would do and why
What are the five steps in the basic procurement process : What are the five steps in the basic procurement process? Identify and define the four parts of the enterprise structure required for procurement
What is most he should pay to purchase this payment today : Jim Nance has been offered an investment that will pay him $460 three years from today. What is most he should pay to purchase this payment today
What is the effect of this transaction on shareholder equity : During the year, 40,000 treasury shares were reissued at 18 per share. What is the effect of this transaction on the shareholder's equity of the company
Prepare the journal entry to record acquisition of shares : Subsequently, Abini reacquired 25% of these shares at a cost of $22,500 and proceed to retire the shares. Prepare journal entry to record acquisition of shares
What effect does depreciation have on cash flow : What effect does depreciation have on cash flow? Give example of an out-of-pocket cost and a sunk cost by describing a situation in which both are encountered
How much money will be in the account : How much money will be in the account if the interest rate is 10% compounded semiannually with payments of $1000 made at the end of each semiannual period

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare journal entries to record the sale of merchandise

Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any December 31, 2021

  Discuss dependence on a future event

It is important that all three criteria are present at the time financial statements are prepared in order for a contingent liability to exist

  Calculate the cost per unit of a production run toy flutes

Calculate the cost per unit of a production run of 4,260 toy flutes that required - Raw materials costing $2,880

  Summary of actions that you might have taken yourself

Evaluation of alternatives to solve the situation in the case

  What is the maximum transfer price

Aulman Inc. has a number of divisions, including a Furniture Division and a Motel Division. The Motel Division owns and operates a line of budget.

  Prepare a statement of members equity

Determine the division of income among the three members. If an amount box does not require an entry, leave it blank. Prepare a/an statement of members' equity

  Five core principles of nclb 2001

Strong Accountability for Results: The pros of this principle are that is compares students performances data to the standards and not to the students around them.

  What amount will each plaintiff receive

A class-action suit against a utility company resulted in a settlement of $1.7 million for 66,000 customers. What amount will each plaintiff receive

  Calculate johnson expense deduction

Calculate Johnson's expense deduction using the 2013 Form 2106 (Employee Business Expenses) based on actual automobile expenses

  The reuschel company began 2013 with inventory of 10000

the reuschel company began 2013 with inventory of 10000 units at a cost of 7 per unit. during 2013 50000 units were

  At what amount per unit should product XYZ be reported

The normal profit is 40% of selling price. At what amount per unit should product XYZ be reported, applying lower-of-cost-or-market

  Compute the percentage of allowance for doubtful accounts

Compute the percentage of the allowance for doubtful accounts to the accounts and notes receivable as of December 31, 2009, for The MGM Mirage

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd