What is the minimum amount that you will accept today

Assignment Help Accounting Basics
Reference no: EM132546554

Question - Your parents have made you two offers. The first offer includes annual gifts of RM5,000, RM6,000, and RM8,000 at the end of each of the next three years, respectively. The other offer is the payment of one lump sum amount today. You are trying to decide which offer to accept given the fact that your discount rate is 6.2 percent. What is the minimum amount that you will accept today if you are to select the lump sum offer?

Reference no: EM132546554

Questions Cloud

Determine the cost of the goods sold : Determine the cost of the goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method and the average-cost method
Contrast private equity and venture capital : Compare and contrast private equity and venture capital. What are the benefits of these kinds of financing approaches?
What most appropriate tool for cost volume profit analysis : Company W is trying to What is the most appropriate tool :-Cost volume profit analysis, Variance analysis, 2 stage costing, Differential analysis
Who are the stakeholders in situation : a. Who are the stakeholders in this situation? b. What are the ethical issues involved in this situation?
What is the minimum amount that you will accept today : You are trying to decide which offer to accept given the fact that your discount rate is 6.2 percent. What is the minimum amount that you will accept today
Identify intolerable technical risk : Identify an "intolerable technical risk" on a project with which you are familiar, or on one that you can research.
How the stress many older adults may feel evaluated : Formulate a thesis statement and an outline for your paper. For information on creating a thesis statement, see Effective Writing Center pages
Should dorchester build the new manufacturing plant : Should Dorchester build the new manufacturing plant in the United States? Dorchester, Ltd. is an old-line confectioner specializing in high-quality chocolates.
What is the monthly payment : You would like to have $37,330 in 18 years.. If the rate is 7.19%, how much do you have to invest each year?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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