What is the maximum lump sum payment you are willing to make

Reference no: EM13295174

You have the opportunity to buy 6 end-of-year annual shipments of raw materials worth $20,000 each for your production facility. You must make the purchase today to begin receiving these shipments 365 days from today. Your vendor tells you that you will receive 10% annual interest on your money if you purchase the shipments today. What is the maximum lump sum payment you are willing to make today to buy these six future annual shipments?

Reference no: EM13295174

Questions Cloud

Find magnitude of kinetic friction force acting on childe : A 30kg child slides down a playground slide at a constant speed. find the magnitude of the kinetic friction force acting on the child

How to calculate the molar enthalpy change : Calculate the molar enthalpy change ?H~rxn for the dissolution of KNO3 in water. Calculate in the error in ?H~

Estimate the firm external financing needs : Estimate the firm's external financing needs by using the percent-of-sales method for the 2012 data. Assume that no excess capacity exists and that one-half of the 2012 net income will be retained in the business.

Determine the magnetic force on the bolt : An iron bolt of mass 70.0 g hangs from a string 35.2 cm long. The top end of the string is fixed. Find the magnetic force on the bolt

What is the maximum lump sum payment you are willing to make : What is the maximum lump sum payment you are willing to make today to buy these six future annual shipments?

Estimate the effective spring constant of the molecule : A molecule of DNA (deoxyribonucleic acid) is 2.08 µm long. The ends of the molecule become singly ionized: negative on one end, Determine the effective spring constant of the molecule

Define mass of the limiting reactant in the salt mixture : The drying oven, although thought (and assumed) to be set at 125 degrees C, had an insie temperature of 84 degrees C. How will this error affect the reported percent by mass of the limiting reactant in the salt mixture

What industrial and national capital structure pattern : What industrial and national capital structure patterns are exhibited globally? What factors seem to be driving these patterns?

What is the impact of a stock repurchase on a company : What is the impact of a stock repurchase on a company's debt ratio? Does this suggest another use for excess cash?

User Account

All Pages