What is the present value

Assignment Help Finance Basics
Reference no: EM133119694

Peter works at IBM and expects his annual salary to grow steadily at 4% per year for the next ten years, when he expects to retire. His current salary, which has just been paid, is $70,000. If Peter can earn 8% on his investments, what is the present value of his remaining annual salaries?

Reference no: EM133119694

Questions Cloud

Different forms of market efficiency : (a) We discussed about different forms of market efficiency. Briefly describe each of them. Which form of efficiency do you consider closer to what happens in t
Default of mortgage-backed securities : Briefly explain how if the default of mortgage-backed securities began the crisis, credit default swaps made things much worse
Comparative advantages of investing : 1) Would you expect a typical open-end fixed-income mutual fund to have higher or lower operating expenses than a fixed-income unit investment trust? Why?
What is the expected rate of return of menger corporation : 1. The rate of return on the U.S. government treasury bill is 0.05 and the expected rate of return on the Wilshire 5000 is 0.07. What is the required rate of re
What is the present value : Peter works at IBM and expects his annual salary to grow steadily at 4% per year for the next ten years, when he expects to retire.
How much was ABC Company cost of goods manufactured : Cost of goods sold for February was $144,500. How much was ABC Company's cost of goods manufactured in February
What is the market premium market rate of return : 1. A stock with a beta of 2.9 has an expected rate of return of 15.6%. The risk-less rate in the market is 4%. What is the market premium market rate of return
Proponents of deregulation : Why were proponents of deregulation so successful in the late 1990s? How much can we blame deregulation for the meltdown in the investment banking industry, and
Prepare a statement of cost of goods manufactured : Raw material purchases and direct labor costs incurred were $36,600 each, Prepare a statement of cost of goods manufactured for ABC Company

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the npv of the project and should you pursue

The equipment will be depreciated using straight line depreciation over a five year life and has no salvage value.

  Discuss why exotic options might be better suited

Discuss why exotic options might be better suited as an instrument to hedge risks compared to plain vanilla put or call options.

  What will be their monthly loan payment

The Sundarams are buying a new 3,500-square-feet house in Muncie, Indiana and will borrow $202,634 from Bank One at a rate of 6.472 percent for 15 years.

  What are some processes of data collection

What are some processes of data collection? Give at least two examples.

  What level of pretax cost savings require for the project

Calculating Required Savings. A proposed cost-saving device has an installed cost of $535,000. The device will be used in a five-year project.

  Identify leadership behaviour displayed by sales manager

Illustrate with relevant example from the case Linda's leadership style according to University of Iowa Studies.

  Describe the difference in economic profit between a

describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run?

  How much of the firm market value

Problem: Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions):

  Describe a decision that centralized

Describe a decision that is centralized (or decentralized) in your company. How could you decentralize (or centralize) the decision? What would happen if it were decentralized (or centralized)?

  What would be the value of the bond

What would be the value of the bond described in Part d if, just after it had been issued, the expected inflation rate rose by 3 percentage points, causing

  Discounted dividend and corporate valuation models

1. Discuss the similarities and differences between the discounted dividend and corporate valuation models.

  Calculate the standard deviation correlation coefficient

The expected return of Cullumber is 17.7 percent, and the expected return of Riverbed is 22.7 percent. Their standard deviations are 11.7 percent and 19.7 perce

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