What is the present value today

Assignment Help Finance Basics
Reference no: EM132422022

Problem: Next year you will begin receiving $286 dollars per year in perpetuity from your grandparent's family trust fund (first payment is exactly 1 year from today). What is the present value today of these future cash flows if you discount them at 8.3%? (Hint: draw a time line to illustrate exactly the cash flows for this problem.) Answer to 2 decimal points.

Reference no: EM132422022

Questions Cloud

Provide after-tax operating cash inflows : What is the Npv for a project whose cost of capital is 10 percent and inital after-tax cost is $5,000,000 and is expected to provide after-tax operating cash in
Emerged repeatedly in evaluating the risks : What were some of the risk sources that emerged repeatedly in evaluating the risks? How is this helpful?
Compute the correct payment : Thus this implies 14.78 % APR, compounded monthly for this problem. To compute the correct payment, do not round your interest rate too much.)
Importance of sustainability and social responsibility : Analyse the importance of sustainability and social responsibility in finance.
What is the present value today : What is the present value today of these future cash flows if you discount them at 8.3%?
Designing and Maintaining IT Security Policies : How to Design, Organize, Implement, and Maintain IT Security Policy research. Designing and Maintaining IT Security Policies
What is the clientele effect : What is the clientele effect, and how does it affect dividend policy relevance?
Information governance reference model diagram : In order to interpret the Information Governance Reference Model (IGRM) diagram. It is recommended that we start from the outside of the diagram.
How has mobile computing changed your life : How has mobile computing changed your life? Describe the impact of mobile computing on programming. What are some commonly used mobile programming languages?

Reviews

Write a Review

Finance Basics Questions & Answers

  Sole debt outstanding

Sole debt outstanding

  Describe the two types of tax-deferred investment

Describe the two types of tax-deferred investment accounts [an IRA, and a 401(k) or 403(b)], and contrast them with a regular taxable investment account. What types of investments are best held in a tax-deferred account? What types are best held as t..

  Calculate free cash flow from the balance sheet

Calculation of Free Cash Flow from the Balance Sheet and Income Statement (Easy) A firm reported comprehensive income of$376 million for 2012, consisting.

  Explain roles of limited liability partnerships

I have to prepare a paper in which I describe the roles of limited liability partnerships and corporations. If you were establishing your own business, under what situations would you choose one from the other?

  One-year treasury bills currently earn 550 percent you

one-year treasury bills currently earn 5.50 percent. you expect that one year from now one-year treasury bill rates

  Differences between common stock and preferred stock

Question 1: Outline the differences between common stock and preferred stock? Question 2: What are the differences between capital projects that are independent, mutually exclusive, and contingent?

  Equipment necessary to perform inspections

The equipment necessary to perform these inspections will cost $551,000 and will generate cash flows of $193,000 over each of the next five years.

  How much was paid out in net dividends

Using Accounting Relations (Medium) Below are a balance sheet and an income statement that have been reformulated according to the templates laid out.

  What is its current value

In the fourth year, the stock price is expected to be $20. If the required return for this stock is 13.5 percent, what is its current value?

  What would your total interest expense be

If you decide to purchase this home, what will your monthly payment be? Additionally, over the life of the loan what would your total interest expense be?

  Examine advantages of financing with portfolio of currencies

Compare two methods that a company can use in order to finance international trade. Examine the advantages and disadvantages of financing with a portfolio of currencies.

  How would you determine the offering price of an ipo

If you were an investment banker, how would you determine the offering price of an IPO?

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