What is the PV of this deal

Assignment Help Accounting Basics
Reference no: EM133140469

Question - We are now January 1, 2022, and someone offers you this deal: starting from year 2022, you will be paid each year the amount of dollars equal to the year: $2022, $2023, $2024 ... until the year 3022 inclusive (at the end of which you will receive $3022). If payments are made at the end of the year and the interest rate is 10%, what is the PV of this deal? How about if the deal covers only from 2022 to 2072 (50 years instead of 1000), what would be the PV?

Reference no: EM133140469

Questions Cloud

What can the juvenile justice system do to reduce : Assuming that early onset of deviance strongly predicts more frequent, varied, and sustained criminality later in life, what can the juvenile justice system do
Engaging and retaining the right talent culture fit : "The employer brand is the most powerful tool a business has for attracting, engaging and retaining the right 'talent culture fit' in what is increasingly becom
Consideration of an organisational hierarchy : Explain how complaints received may be communicated in consideration of an organisational hierarchy.
Reflect on the role of slavery in southern life : Reflect on the role of slavery in southern life (both material and cultural levels).
What is the PV of this deal : If payments are made at the end of the year and the interest rate is 10%, what is the PV of this deal
Comparing employee productivity : In a benchmarking study comparing your employee productivity to that of your closest competitor, you discover that the mean employee productivity for each compa
Important clause in a hotel contract : Q. In your opinion, what is the most important clause in a hotel contract? Why?
What is the cumulative wealth index for company XYZ : Question - The following data are given for company XYZ. What is the cumulative wealth index for company XYZ
Four attributes of high-quality primary care : Name and explain four attributes of "High-Quality Primary Care".

Reviews

Write a Review

Accounting Basics Questions & Answers

  On january 1 2012 huber co sold 12 bonds with a face value

on january 1 2012 huber co. sold 12 bonds with a face value of 800000. the bonds mature in five years and interest is

  Calculate the total liabilities reported in ABC Company

Calculate the total liabilities reported in ABC Company's December 31, 2019 balance sheet after the appropriate adjusting entries have been recorded and posted

  Graph the Capital Allocation Line derived

The risky portfolio A consists of 1000 shares of BIT PLC and 4000 shares of DIMO PLC. Graph the Capital Allocation Line derived

  Calculate the cost of ending inventory

Calculate the cost of ending inventory, cost of goods sold (COGS) and gross profit using weighted average perpetual

  Compute the lower-of-cost-or-market valuation for sadowski

Sadowski Video Center accumulates the following cost and market data at December 31. Compute the lower-of-cost-or-market valuation for Sadowski inventory

  Calculate its break-even point in sales dollars

Penny Pincher, Inc. had a contribution margin of $33,000 on sales of $50,000 and had fixed costs of $18,000. Calculate its break-even point in sales dollars

  What is wcc book-tax difference associated with the nol

Assuming the $160,000 NOL carryover originated in 2020 and WCC elected to not carry back the loss, what is WCC's book-tax difference associated with the NOL

  Calculate incremental cash flows from accepting proposal

Calculate the incremental cash flows from accepting this proposal, and organize your cash flows into a cash flow spreadsheet

  How the audit risks are associated with the installation

Shane Whitebone, Determine how the audit risks are associated with the installation of the new inventory IT system at Clarrie Potters?

  What should be the tax consequences to Nell and Kirby

What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement

  How much is the amount remitted by DEF to ABC

Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. How much is the amount remitted by DEF to ABC for the first month

  Review problem on merchandising transactions

Powell Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers.

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