What is the most that you would pay for an investment

Assignment Help Financial Management

Reference no: EM131984672

a) what is the most you would be willing to pay for an investment that will pay you $553.00 in one year, $465.00 in two years, and $749.00 in three years if your required rate of return for this type of investment is 13.12%?

b) Supposed you signed a contract for a special assignment over the next 16.0 years. You will be paid $4,249.00 at the end of each year. If your required rate of return is 17.77%, what is this contract worth today?

c) You need a loan to purchase new equipment. The loan will be paid off over 14.0 years with payments made at the end of every quarter. If the stated annual rate is 17.91% and quarterly payments are $270.00, what is the loan amount?

d) What is the most that you would pay for an investment that promises to pay $6,296 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 23.87%.

Reference no: EM131984672

Questions Cloud

The pony express : The fall of Fort Sumter in April, 1861, did not produce the Civil War crisis. For many months, the gigantic struggle then imminent had been painfully

Find the quoted price to the nearest : The yield was quoted as 11.267%. Find the quoted price to the nearest .001.

Risk premium is basis points-default premium is basis points : To the nearest basis point, the risk premium is basis points and the default premium is basis points

Write a cpp program a two-dimensional array are populated : Write a c++ program a 2-dimensional array of 10x5 that are populated by random numbers between 0 and 49.

What is the most that you would pay for an investment : What is the most that you would pay for an investment that promises to pay $6,296 a year forever with the first payment starting one year from now?

Expenses expected to be the first year of retirement : Assuming you want to maintain the same standard of living in retirement, what are your monthly expenses expected to be the first year of retirement?

What is the firms dividend yield : The shares of the Dyer Drilling Co. sell for $60. The firm has a P/E ratio of 15. Twenty percent of earnings is paid out in dividends.

Draft an internal memorandum : The audit partner from Awesome Audits wants you to draft an internal memorandum based on the given information

Calculate the earnings before interest and taxes : Sheryl's Shipping had sales last year of $11,500. The cost of goods sold was $6,800, general and administrative expenses were $1,300.

User Account

All Pages