User Account

All Pages

What is the present value of windfall

Assignment Help Finance Basics
Reference no: EM132421946

Problem: You have just received a windfall from an investment you made in a? friend's business. He will be paying you $49,905 at the end of this? year, $99,810 at the end of the following? year, and $149,715 at the end of the year after that? (three years from? today). The interest rate is 12.6% per year.

Required:

Question 1: What is the present value of your? windfall?

Question 2: What is the future value of your windfall in three years? (on the date of the last? payment)?

Reference no: EM132421946

Questions Cloud

Write an email to the chief HR officer : Write an email to the chief HR officer. Again, it should be as concise as possible, while conveying all the pertinent information you feel is required
Determining price of common stock-northfield power system : Northfield Power System is going to pay an annual dividend of $4.50 a share on its common stock next year. This year, the company paid a dividend
What is the npv of project-retail corp : Retail corp. is looking at a new commercial dryer system with an installed cost of $400,000. This cost will be depreciated straight-line to zero over the system
Describe the term investor profile : a. Describe the term "investor profile" and explain the two ways how investor profile can be viewed.
What is the present value of windfall : You have just received a windfall from an investment you made in a? friend's business. He will be paying you $49,905 at the end of this? year, $99,810
What is the most she can consume in her old age : Lara Beal has $8,000 in cash now. She can lend and borrow at the bank at 10 percent per period. Her only investment possibility other than the bank
What is company a cost of equity : Company A has an expected EBIT of $35 million in perpetuity, a tax rate of 25%, and a debt to equity ratio of 0.2. The firm has $35 million of outstanding debt
What is marcom in imc : What is marcom? How have the functions within marketing communications become more integrated? Where do the IMC communications tactics fit?
Explain the shape of the resultant yield curve : Discuss three interest rates term structure theories that help explain the shape of the resultant yield curve.

Reviews

Write a Review

Finance Basics Questions & Answers

  Why would market expect diversifying mandas to destroy value

Diversifying takeovers are frequently associated with negative announcement returns to the bidders. Why would the market expect diversifying M&As to destroy value?

  What is the kitchener ranger current strategy

What is the Kitchener Ranger's current strategy? How well is the strategy working?

  In this question the risk free rate is 3 and the market

in this question the risk free rate is 3 and the market risk premium is 6. please answer the following two questions.

  Calculate the indifference point for widgets and gadgets

Calculate the indifference point for widgets and gadgets and interpret the results.

  What is the value of safeco stock

Safeco's recent dividend was $0.88. What is the value of Safeco stock when the required return is 10 percent?"

  Compute the annual lease payment

Compute the annual lease payment that would make the two alternatives equivalent. Ignore the nominal purchase fee at the end of Year 10.

  Integrative-determining relevant cash flows

Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widget grinder to replace the existing grinder. The existing grinder was purchased 2 years ago at an installed cost of $60,000;

  What is the annual ordering cost of the postcard inventory

Post Card Depot, a large retailer of postcards, orders 3806306 postcards per year from its manufacturer. Post Card Depot plans on ordering postcards 16 times.

  Are you starting with a big share of a small market

The monopoly question: Are you starting with a big share of a small market? The people question: Do you have the right team?

  Intense seasoned demand for loans

As the executive of a bank or thrift institution you are faced with an intense seasoned demand for loans. Assuming that your loanable funds are inadequate to care take of the demand, how might you Reserve Bank help you with this problem?

  Essential for organisations to understand

1. What is pure risk and speculative risk? 2. Why is it essential for organisations to understand and be aware of the risks they face?

  If boyd corporation has sales of 2 million per year all

1. if boyd corporation has sales of 2 million per year all credit and days sales outstanding of 35 days what is its

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd