What is the present value of McGraw offer

Assignment Help Accounting Basics
Reference no: EM133037449

Question - You have received an offer for the sale of your home. The McGraw family have offered you $240,000 but the purchase price will not be paid until 2 years from today. The prevailing interest rate is 9% per annum. What is the present value of McGraw's offer?

a. $196,799.50

b. $202,003.20

c. $283,200.50

d. $240,000.00

Reference no: EM133037449

Questions Cloud

Explain what a first-to-default credit default swap is : Explain what a first-to-default credit default swap is. Does its value increase or decrease as the default correlation between the companies in the basket incre
Evaluating the sociocultural health of a country : When evaluating the sociocultural health of a country, list in order of importance three sociocultural aspects of the culture that you would want to consider.
Employee performance review for the performance element : As a Contract Specialist, describe real-life examples to be inputted under "Standards" in an employee performance review for the following performance element -
Determine the cost of finished goods manufactured : Question - Kid Gloves Manufacturing reports the following information for the year. Determine the cost of finished goods manufactured
What is the present value of McGraw offer : The McGraw family have offered you $240,000 but the purchase price will not be paid until 2 years from today. What is the present value of McGraw offer
What is the americans with disabilities act : 1. What are the addresses of three national or international websites that provide information regarding dyslexia?
Limitations of porter five forces model : 1. If strategic management is a straightforward concept, then why do many firms have difficulty formulating and executing effective strategies?
Customer demand for cloud-based computing : Do you think companies can meet customer demand for cloud-based computing?
Compute the minimum income from business : Compute the minimum income from business for tax purposes for Eldridge Asset Sales Inc. in respect of its 2020 fiscal year

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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