What is the present value of this sum of money

Assignment Help Financial Management
Reference no: EM131962507

A) $74,236 will be received in 14 years. The appropriate discount rate is 6.14%. What is the present value of this sum of money? Write your answer as a positive number.

B) For an annuity in arrears, what annual payment is required to accumulate $493,955 in 14 years at an interest rate of 12.82? Key your answer in as a positive number.

C) To stay "even" (same purchasing power) with inflation forecast at 4.7% per year, what would your salary need to be in 9 years if you currently earn $51,674 per year? Key your answer in as a positive number.

Reference no: EM131962507

Questions Cloud

Directly in the foreign exchange market : Suppose that you need to buy 6 pounds using French francs. If you buy 6 pounds directly in the foreign exchange market,
What is the expected capital gains yield-yield to maturity : What is the yield to maturity? For the coming year, what is the expected capital gains yield?
Major cultural change for department of defense : Do you think the shift to ope-source software involved a major cultural change for the department of defense?
What is the unit contribution for yabba dabba doo : What is the unit contribution for Yabba Dabba Doo? hat market share does Yabba Dabba Doo need to break even? What is Yabba Dabba Doo’s profit?
What is the present value of this sum of money : $74,236 will be received in 14 years. The appropriate discount rate is 6.14%. What is the present value of this sum of money?
Call premium and can declare capital gain on tax returns : Since the bonds have been called, investors will receive a call premium and can declare a capital gain on their tax returns.
What are the two components of interest rate risk : What are the two components of interest rate risk? What is the correlation of each to interest rate risk?
Who are priceline competitors : What are Priceline’s internal strengths and weaknesses? Who are Priceline’s competitors?
What is reinvestment risk : What is reinvestment risk? Does it occur when a bank is short funded or long funded? What movement in interest rates will result in a loss?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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