What is the present value of all three future benefits

Assignment Help Finance Basics

Reference no: EM131965992

Question: Del Monty will receive the following payments at the end of the next three years: $5,000, $8,000, and $10,000. Then from the end of the 4th year through the end of the 10th year, he will receive an annuity of $11,000 per year. At a discount rate of 9 percent, what is the present value of all three future benefits? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131965992

Questions Cloud

How much does seniority factor in on your decision : When selecting an employee to do training, how much does seniority factor in on your decision? Why?

How much should borrow in the us : Delaney Inc. needs €1,050,000 in 30 days. Delaney can earn 0.05 annualized on a German security. The current spot rate for the euro is $1.00.

Health care organization point of view : They wanted to tell him about both his mother and sister death, because he has outburst and becomes very upset that he can't talk to his mother.

What should futures contract on the bond : What should a futures contract on the bond that expires in eight months be selling for? How could an arbitrageur profit if the contract were selling for $940.

What is the present value of all three future benefits : Del Monty will receive the following payments at the end of the next three years: $5,000, $8,000, and $10,000. Then from the end of the 4th year.

Finding the future worth of each machine : DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $10,000, an estimated life of 10 years.

Depending on which currency it wants to borrow : Assume that Choose Bank has a borrowing capacity of either $10 million or 70 million pesos in interbank market, depending on which currency it wants to borrow.

Professional role may have challenges : Many of the families you work with in your professional role may have challenges.

Excluding the escrow for taxes and insurance : What will be Billy Bob's monthly payment for principal and interest, excluding the escrow for taxes and insurance?

User Account

All Pages