What is the present value

Assignment Help Finance Basics
Reference no: EM132134834

a. How much money would you have to invest today to accumulate ?$3,100 after 4 years if the rate of return on your investment is 15?%?

b. What is the present value of ?$3,100 that you will receive after 4 years if the discount rate is 15?%?

c. What is the most you would spend today for an investment that will pay ?$3,100 4 years if your opportunity cost is 15%??

d. ?Compare, contrast, and discuss your findings in part a through c.

Reference no: EM132134834

Questions Cloud

What is the projected dividend for the coming year : The required return on this stock is 10 percent, and the stock currently sells for $79 per share. What is the projected dividend for the coming year?
What is the current share price : Investors require a return of 15 percent for the first three years, a return of 13 percent for the next three years, and a return of 11 percent thereafter
What price should she charge to break even point in sales : a. What price should she charge to break even point in sales dollar?
What is the value of stock today : After that, the firm will increase the dividend by 4% each year. what is the value of this stock today at a discount rate of 9%?
What is the present value : a. How much money would you have to invest today to accumulate ?$3,100 after 4 years if the rate of return on your investment is 15?%?
Concept to accomplish goal : Financial Management How can a financial manager use the time value of money(TVM) concept to accomplish this goal?
What is the project npv : Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV
Find the net present value of the project : Find the net present value of the project assuming a discount rate of 10%.
Share of common stock : Would you pay $23 for a share of common stock that just paid a $1.65 dividend, its expected growth rate is 4% and your required return is 11%?

Reviews

Write a Review

Finance Basics Questions & Answers

  What would the future value be

What's the future value of a 5%, 5-year ordinary annuity that pays $800 each year? If this was an annuity due, what would its future value be?

  Calculate snyder tax liability

In addition, it received both interest and dividends from the Bevins Corp., of which it owns 30%. The interest received from Bevins was $2,430,000, and the dividends were $4,700,000. Calculate Snyder's tax liability.

  Relationship between employee satisfaction

The two hypothesis are (H0) there is no relationship between employee satisfaction (DV) and pay (IV), or (H1) there is a relationship between employee satisfaction (DV) and pay (IV).

  What is the net cost of the spectrometer

The spectrometer would have no effect on revenues, but it is expected to save the firm $25,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 40%.

  What is the internal rate of return

What is the internal rate of return (IRR) for the project? Round the answer to two decimal places in percentage form.

  How information systems are related to the overall business

how information systems are related to the overall business

  What is the monthly payment during the first year

A 30-year variable-rate mortgage offers a first-year teaser rate of 2%. After that, the rate starts at 4.5%, adjusted based on actual interest rates. The maximum rate over the life of the loan is 10.5%, and the rate can increase by no more than 200 b..

  Calculation of yield to maturity of a bond

What is the current yield on a government bond, issued exactly five years ago, that has a current market price of $5866 and pays an annual coupon payment of $350, and matures at the end of 4 years, when the face value of $5000 will be repaid?

  You want to have 1 million in real dollars in an account

you want to have 1 million in real dollars in an account when you retire in 30 years. the nominal return on your

  Calculate the payback period

For both the Standard and the Deluxe machines, calculate the payback period.

  Bond based on the closing pricing

How to calculate the YTM of RM's 5-year bond based on the closing pricing.

  Instead of employing capital markets research techniques

instead of employing capital markets research techniques e.g. event studies why dont we just ask investors how they

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