What is the present value of the growing perpetuity

Assignment Help Marketing Research
Reference no: EM131404555

Question 1 : After placing $13,000 in a savings account paying annual compound interest of 3%, Leona will accumulate what amount if she leaves the money in the bank for 4 years?

Question 2 : You have just introduced "must have" headphones for the iPod. Sales of the product are expected to be 20,000 units this year and are expected to increase by 16% annually in the future. What are the expected sales in each of the next three years? If the 20,000 units were expected to increase by 18% a year, what are the expected sales next year for this product?

Question 3 : What is the present value of a $650 perpetuity discounted back to the present at 10%? What is the present value of the perpetuity?

Question 4 : What is the present value of a perpetual stream of cash flow that pays $80,000 at the end of one year and grows at a rate of 5% indefinitely? The rate of interest used to discount the cash flows is 10%. What is the present value of the growing perpetuity?

Question 5

You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:

End of Year                             A

 

 

S                                          1.000

S 1.000

S             5.000

7,000

1,000

5,000

3,000

1,000

(5,000)

(4,000)

1,000

(5,000)

4,000

3,000

15,000

What is the present value of investments A, B, and C if the appropriate discount rate is 10%?

Reference no: EM131404555

Questions Cloud

How you use your scatterplot to help you make prediction : What other variables, aside from her mother's height, might be useful for improving your prediction? How could you use these variables in conjunction with the mother's height?
What is an example of two variables that have no association : Explain what it means when two variables have a negative association. What is an example of two variables that would have no association?
Determine the net present value for this project : Find the net present value using a discount rate of 10% and by comparing this figure to your answer to (a) estimate the internal rate of return for the project.
Discuss impact of sample size on given parametric values : Every population has a parametric mean (µ) and parametric standard deviation (s). Briefly discuss the impact of sample size on these parametric values.
What is the present value of the growing perpetuity : You have just introduced "must have" headphones for the iPod. Sales of the product are expected to be 20,000 units this year and are expected to increase by 16% annually in the future. What are the expected sales in each of the next three years? I..
What is the payback period for the investment : In the small print of the advertisement it says ‘a service charge of £1000 per annum is charged for the cleaning and general maintenance of the property'. Work out how this will alter the net present value of the investment.
Find the payback period for this venture : After a bad accident Anton receives a large sum in compensation. He is thinking about using it to invest in a stretch limousine to hire out for special occasions.
Should magnum electronics change its product mix : Based on the above information and Jane Dunsmore's analysis, should Magnum Electronics change its product mix in the coming months?
Calculate the mean squared deviation (msd) of the errors : Produce predictions up to and including day 9 using the exponential smoothing model with a smoothing constant of 0.3 and calculate the mean squared deviation (MSD) of the errors.

Reviews

Write a Review

Marketing Research Questions & Answers

  Create a new product that would appeal to your market

Choose the target market for your product, and describe your target market in detail.Create a new product that would appeal to your market.Develop at least one question for each characteristic of the target market (demographic, geographic, psychogr..

  Write a paper about the feminism in american horror story

Write a paper about Feminism in American Horror Story: Coven

  Where are data for marketing research obtained

Where are data for marketing research obtained? Give examples of internal and external data.- What is the difference between probability sampling and nonprobability sampling?

  Types of marketing research performed for the business

Determine whether the company takes a one-shot approach to particular problems or is systematicover a long period of time.

  Develop a positioning statement for chocoholic tours

MKTG1053 Service Quality What type of customers make up the market in which Chocoholic Tour operates - identify Chocoholic Tour's key market/customer segments and develop a positioning statement for Chocoholic Tours

  What are the five stages of self-leadership

How can the salesperson use follow-up activities to assess customer satisfaction?What are four components of effective follow-up?What actions can a salesperson take to ensure customer satisfaction?Name and explain each action?In what ways, can the sa..

  Discuss about competitive effect and customer satisfaction

Describe and give examples of some of the following types of pricing objectives: profit, market share, competitive effect, customer satisfaction, and image enhancement.

  Construct a corporate profile for a publicly-traded company

For this paper, you will research and construct a corporate profile for a publicly-traded company which operates in cyberspace and therefore has a need for cybersecurity products and services.A list of approved companiesappears at the end of this ..

  Describe the medium of communications

Write down all of the possible mediums in which you are exposed to this week. Mediums are any communication medium which is used as a vehicle for advertisements. Some examples of mediums are television, radio, print advertisment, direct mall etc. ..

  What changes will have come to journalism by 2027

Use the web to find out what experts are saying about the future of journalism in the next 10 years, paying particular attention to what they say about mobile. Then write a 500-word essay telling us your predictions for what changes will have come..

  A brief explanation of porter''s four competitive strategies

Competitive Strategy Over the Web Assignment :In this case study, you will research an organization and determine how their business strategy differentiates them from other organizations in the same industry using Porter's four competitive strateg..

  Discuss about the role of the marketing function

Imagine: a new 5 week marketing manager internship has opened up at each of the organizations listed below. And based on your past accomplishments (and that awesome business card), they all want you. The internship involves researching your employ..

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