What is the fair price of this investment

Assignment Help Financial Accounting
Reference no: EM131146923

An investment pays $2,600 per year for the first 4 years,

$5,200 per year for the next 6 years,

and $7,800 per year the following 7 years (all payments are at the end of each year).

If the discount rate is 10.25% compounding quarterly, what is the fair price of this investment?

Reference no: EM131146923

Questions Cloud

Draw a functional block diagram of the system : Draw a functional block diagram of the system. Indicate the input and output signals, intermediate signals, and main subsystems.
What are the elements of a strategic staffing diagnostic : What are the elements of a strategic staffing diagnostic model? That is, a structured approach to determining where the personnel needs of the organization exist?
Evaluate possible causes of and treatment for this disorder : Choose a specific neurological (e.g., epilepsy, traumatic brain injury) or neuropsychiatric disorder (e.g., depression or AD/HD). Evaluate possible causes of and treatment for this disorder, providing examples to support your thoughts. Be sure to ..
Theories of unconscious motivations : Can you think of ways in which Freud's theories of unconscious motivations are commonly used in popular culture? How accurately do you think such popular uses of Freudian theories reflect Freud's ideas
What is the fair price of this investment : An investment pays $2,600 per year for the first 4 years,- $5,200 per year for the next 6 years,-  and $7,800 per year the following 7 years-  what is the fair price of this investment?
What does a swot analysis of netflix reveal : What does a SWOT analysis of Netflix reveal about the overall attractiveness of its situation? a) NetFlix's Resource Strengths and Competitive Assets b) Netflix's Resource Weaknesses and Competitive Liabilities
Draw a block diagram describing the system design : Their movements are fed into a computer that finds the differences between their joint positions and provides proportional vibrational strength feed back to the student. Draw a block diagram describing the system design.
Compute separate budget for each cash payment budget listed : Using the information above, prepare the following budgets for the first quarter (January, February, March AND a. Create a separate budget for each cash payments budget listed.
What is the overall market beta of apex health services : Why do the corporate and market beta differ for the same project? What is the overall corporate beta of Apex Health Services? k Is the calculated beta consistent with corporate risk theory? What is the overall market beta of Apex Health Services?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Illustrate what formula/steps do it take

At December 31, 2004, the balance in the investment account should be $810,000. Illustrate what formula/steps do I take to get $810,000?

  What is the companys net income

What is the companys net income for the year ending December 31, 2010 and financial statements of Dinkel Company for the year ending December 31, 2010

  Prepare abc corporations statement of cash flows

Prepare ABC Corporation's statement of cash flows using the indirect method.  Include an accompanying schedule of noncash investing and financing activities.

  Why do you suppose this is the case

To the firm, the use of debt capital can be risky (debt versus equity), while for the investor, the opposite is the case. Why do you suppose this is the case?

  Example of horizontal analysis

Assume that you are looking at an analysis of financial statements of Nike. Which of the below would be the best example of horizontal analysis? Assume administrative expenses were equal to 104,000 in 2013, and to 97,400 in 2014. What was the percent..

  Financial statements for internal service fund

Lilly County, faced with the prospect of declining revenues, decides it can save money by doing all printing in-house. The county creates the Lilly Printing Fund (an Internal Service Fund), directs departments to fulfill their bulk printing needs thr..

  Journalize the transaction on the books of both companies

The selling price of the goods is $780, and the cost of the goods is $470. Both companies use perpetual inventory systems. Journalize the transaction on the books of both companies.

  High-performance motorcycles and motocross racers

Speed World Cycles sells high-performance motorcycles and Motocross racers. One of the Speed World's most popular models is the Kazomomma 900 dirt bike

  Prepare a balanced scorecard for the unit

Prepare a Balanced Scorecard for the unit of an organization of your choosing (Red Lobster).The organization may be Red Lobster (the restaurant).

  What is the cost of goods available for sale

Northwest Fur Co. started 2013 with $100,000 of merchandise inventory on hand. During 2013, $450,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Ass..

  What is the purpose of the adjustment

Franklin, Inc. owns 80% of Prevatt Company. During the current year, a portion of the investment in Prevatt is sold. Prior to recording the sale, Franklin adjusts the book value of its investment. What is the purpose of the adjustment?

  Prepare journal entries to record acquisition of building

Prepare the journal entries to record The acquisition of the building and inception of the mortgage loan payable and The first mortgage payment on June 30, 2014.

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