What is the present value of investment

Assignment Help Finance Basics
Reference no: EM133115167

You are considering investing in a security that will pay you ?$3,000 in 26 years.

a. If the appropriate discount rate is 12 percent?, what is the present value of this? investment?

b. Assume these investments sell for ?$1,158 in return for which you receive ?$3,000 in 26 years. What is the rate of return investors earn on this investment if they buy it for ?$1,158??

Reference no: EM133115167

Questions Cloud

What proceeds will robinson receive : Robinson's contacted Capital One Bank on July 20; the bank agreed to take over the note at a 6.5% discount. What proceeds will Robinson's receive
What is the annualized cost of the bank? loan : The loan will carry a rate of 15 percent per annum with interest paid in advance? (discounted). What is the annualized cost of the bank? loan
Create marketing project plan : You will create a marketing project plan for a new program and will use this hospital throughout the course.
Reduce the dcf-based npv of an investment : Using Luehrman's framework. Why does higher volatility reduce the DCF-based NPV of an investment while increasing the present value of an opportunity of a real
What is the present value of investment : a. If the appropriate discount rate is 12 percent?, what is the present value of this? investment?
Adopting environmentally-friendly business strategies : Many companies are "going green" or adopting environmentally-friendly business strategies.
How does interest rate affect cap rate : How does interest rate affect cap rate?
Issuing ordinary shares to raise capital : Sonic Healthcare Ltd. is a healthcare company listed in ASX. It is considering issuing ordinary shares to raise capital.
What is the net present value : Question - Cansel Toeny Corporation is planning to buy a new equipment costing P600,000. What is the net present value

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss types of managers in different organizations with

discuss types of managers in different organizations with appropriate

  Money into an account with an annual return

When you retire, you will combine your money into an account with an annual return of 7.2 percent. Assume the returns are expressed as APRs.

  What is monthly payment

You purchase a house that costs $625,000 with an 8%, 30-year mortgage. You make a 20% down payment to avoid PMI insurance.

  Calculate the company cost of equity

Calculate the company's cost of equity given the following information: return on assets 13.25%; return on debt 8.25%; total debt $525,000; total equity $775,00

  Provider in an attempt to control costs

Classify and explain the major costs assumed by a provider. Analyze the methods implemented by a provider in an attempt to control costs.

  Brammer corps projected capital budget is 1000000 its

brammer corp.s projected capital budget is 1000000 its target capital structure is 60 percent debt and 40 percent

  Why are financial institutions necessary in the us

Why are financial institutions necessary in the US? How would not having financial institutions affect people.

  What is the effective annual return

Aunt Kathleen owns 3000 preferred shares of ABC Inc., and she is thinking of selling 100 of these shares to pay for a new computer. These shares pay

  What is the project expected npv if it can be abandoned

Once the project is abandoned, the company would no longer receive any cash inflows from it. What is the project's expected NPV if it can be abandoned?

  Ski resort and accidentally collides with a skier

Martha rents an apartment and is the named insured under a Homeowners 4 policy (contents broad form) with a liability limit of $100,000 per occurrence and $1000 medical payments. For each of the following situations, indicate to what extent, if an..

  Explain teamwork and team performance

Explain Teamwork and Team performance how teamwork is effective in working place?

  Question regarding the giga balance sheet

Giga Corporation built a new headquarters for $800 million with an accounting life of 40 years. Assuming straight line depreciation, after 7 years

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