What is the PV of all future payments

Assignment Help Financial Management

Reference no: EM131047606

Evan Almighty will receive the following payments from ARK, inc. for selling his new boat design: $15,000, $20,000, and $25,000 at the end of the next 3 years. Then from the end of the fourth year to the end of the tenth year, he will receive an annuity of $30,000. At a discount rate of 6%, what is the PV of all future payments?

Reference no: EM131047606

Questions Cloud

Thinking of replacing the packaging machines in texas plant : Rocky Mountain Chemical Corporation (RMC) is thinking of replacing the packaging machines in its Texas plant. Each packaging machine currently in use has a net book value of $1 million and will continue to be depreciated on a straight-line basis to a..

Who intended to strengthen the national government : Who intended to strengthen the national government by having the national government assume the state debts owed to bondholders and foreign investors? Who believed that the national government could do anything the constitution did not forbid it to d..

In the long-term capital management : In the Long-term Capital Management (LTCM) bankruptcy case, as losses started to mount beyond acceptable boundaries, why weren’t the positions closed out?

Evaluating two independent projects with normal cash flows : Which of the following statements is wrong about evaluating two independent projects with normal cash flows? Both MIRR and IRR methods will lead to the same decision regarding accepting or rejecting the projects. Both NPV and Payback period methods w..

What is the PV of all future payments : Evan Almighty will receive the following payments from ARK, inc. for selling his new boat design: $15,000, $20,000, and $25,000 at the end of the next 3 years. Then from the end of the fourth year to the end of the tenth year, he will receive an annu..

What inflation rate is expected after year : Due to a recession, expected inflation this year is only 3%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3%. Assume that the expectations theory holds and the real risk-free rate (r*) is 2%. If ..

Develop classroom lecture for strategic thinking : Please develop a classroom lecture for Strategic Thinking. This type of thinking employs the principles of Vision, Values and Mission. that details each of these principles, and notes how each affects a person’s leadership style.

What is the current value of this preferred stock : North Pole Cruise Lines issued preferred stock many years ago. It carries a fixed dividend of $9 per share. With the passage of time, yields have gone down from the original 10% to 8%. What was the original issue price? What is the current value of t..

Financial statement analysis essential to management : Evaluate at least (2) factors that make financial statement analysis essential to management, investors, and creditors. Provide a rationale for your response. Imagine you are considering investing in a corporation. Examine the key information you wou..

User Account

All Pages