What is the present value of this investment

Assignment Help Financial Management
Reference no: EM13763840

An investment will pay $1,351 two years from now, $2,973 four years from now, and $1,1303 five years from now. If the opportunity rate is 11.77 percent per year, what is the present value of this investment?

Round answer to two decimal places

Reference no: EM13763840

Questions Cloud

Place in the savings account : Camillia plans to go on vacation to Australia 11 years from now. She estimates that she will need $24,186 for the trip. How much does she need to place in the savings account today, assuming that she earns 7.59 percent per year, compounded QUARTERLY,..
How much will each annual payment be : Big Brothers, Inc. borrows $431,375 from the bank at 13.20 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual instalments at the end of each year over the next7 years. How much will each annual..
Purchase asset portfolio that exactly matches liabilities : A company must pay liabilities of $19000 and $11000 at the end of years 1 and 2, respectively. The only investments available to the company are 1 and 2 year zero coupon bonds with yields 6% and 7%, respectively. Calculate the cost to the company tod..
What bid price per widget should you submit : You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land today, it would ..
What is the present value of this investment : An investment will pay $1,351 two years from now, $2,973 four years from now, and $1,1303 five years from now. If the opportunity rate is 11.77 percent per year, what is the present value of this investment?
What must the risk-free rate be : A stock has an expected return of 13.3 percent and a beta of 1.19, and the expected return on the market is 12.3 percent. What must the risk-free rate be?
What was average annual growth rate of dividends for firm : A firm’s dividends have grown over the last several years. 10 years ago the firm paid a dividend of $2. Yesterday it paid a dividend of $7. What was the average annual growth rate of dividends for this firm? Round answer to two decimal places.
What are their overdraft protection fees : Fatimah and Ahmad wants you to do some research of three UAE banks on the internet to find the following information for them, so that they can choose the best Bank to invest, saving or take a loan. What kinds of Checking accounts do they offer, and ..
What amount will the investment accumulate : To what amount will the following investment accumulate? $18,117 invested today for 23 years at 3.48 percent, compounded monthly.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the firms weighted average cost of capital

R.S. Green has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year's annual dividend is expected to be $1.55 a share. The dividend growth rate is 2 percent. The firm also has 7,500 bonds outstanding with a face valu..

  What is macrs

1. What's MACRS? What's the difference between the MACRS approach and the straight-line approach?

  What is the annual ordering cost of postcard inventory

Postcard depot large retailer post cards orders 7,664,874 postcards per year from its manufacture. Postcard depot plans on ordering postcard 12 times over the next year. Postcard depot receives the same number of postcards each time it orders. The ca..

  Bankruptcy costs born by bond holders in case of bankruptcy

A company has a zero-coupon bond outstanding, with face value 1,000 and a 3 year maturity. The bond is risky with a beta of 0.7. The risk free rate is 2% and the market risk premium is 6%. There are two equally likely scenarios at maturity:

  Barbara is considering investing in a stock and is aware

Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing.

  Seed them with dry ice and silver iodine particles

The Russian air force is being called on this year to intercept storms advancing on Moscow and to seed them with dry ice and silver iodine particles. The idea is to make snow drop on villages in the countryside instead of piling up in Moscow.

  Saven travel corporation is considering several investment

saven travel corporation is considering several investment opportunities in order to diversify its operations. mr.

  Plan to improve operations with an eye for reducing costs

It is time for you to finalize your findings for your boss. He is expecting your analysis of your division's operations and to produce a plan to improve operations with an eye for reducing costs.

  Emphasis by most central banks on preventing inflation

Another question lurks behind nearly all discussions of macroeconomic policy: Why should we be so fearful of inflation? Provide your take on the emphasis by most central banks on preventing inflation.

  Determine the present value of the cash flow stream

Consider a lottery that pays to the winner an annuity of $950 that begins at the end of the first year and continues at the end of each consecutive year for a total of 9 years with one exception. Because of high administrative costs associated with r..

  Interest rates are constant

A 4-year bond with a 6.50% coupon and a 9.50% yield to maturity is currently worth $903.87, how much will it be worth 1 year from now if interest rates are constant?

  Is a warrant more similar to a call option or a put option

Company Z issued bonds with detachable warrants several years ago. Each warrant allows the holder to purchase one share of stock at $30 per share. The stock has a beta of 1.3. Calculate the exercise value of the warrants if the price of the underlyin..

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