What is the present value of this growing perpetuity

Assignment Help Finance Basics
Reference no: EM132022711

A product promises an initial payment of $20, 000 at the end of this year and subsequent payments that will thereafter grow at a rate of 3.4 percent annually. If a 9% discount rate for investment product is used, what is the present value of this growing perpetuity.

Reference no: EM132022711

Questions Cloud

What is the effect of the proposal to relax credit : 1. What is the effect of the proposal to relax credit standards on the turnover of accounts receivable
How much must you deposit each year to reach your goal : If the bank is willing to pay 7 percent compounded annually, how much must you deposit each year to reach your goal?
Describe the physical security of the building : Write a 700- to 1,050-word paper describing the physical security of the building and recommendations for improvements.
What would be your total gain or loss : Assume you had sold short 20,000 Kmart stock 18 months ago and you had to cover your position immediately. What would be your total gain or loss
What is the present value of this growing perpetuity : If a 9% discount rate for investment product is used, what is the present value of this growing perpetuity.
What are your current perceptions regarding corrections : What are your current perceptions regarding corrections, probations, and parole in the United States? What are these perceptions based on?
Briefly discuss the cost of quality theories : Briefly discuss the cost of quality theories each of these men proposed: Crosby, Juran, and Deming.
What is the role of the media in shaping public opinion : Probation and parole encompasses a wide variety of offenders and can be as vast and diverse as the populations the law enforcement officials oversee.
Work performance data-work performance information : Describe the difference between work performance data, work performance information, and work performance reports.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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