What is the rate of return investors

Assignment Help Financial Accounting
Reference no: EM133151571

Question - You are considering investing in a security that will pay you $5,000 in 35 years.

Required -

a. If the appropriate discount rate is 12 percent, what is the present value of this investment?

b. Assume these investments sell for $1,289 in return for which you receive $5,000 in 35 years. What is the rate of return investors earn on this investment if they buy it for $1,289?

Reference no: EM133151571

Questions Cloud

Logistics for a mid-sized manufacturing firm : Agatha Christie, Director of Logistics for a mid-sized manufacturing firm in the UK was very resentful of her boss, Juliana Santos, VP of Operations because the
Direct labor-direct material-manufacturing overhead : Describe the differences between direct labor, direct material, manufacturing overhead, and nonmanufacturing costs,
How much is her maximum section deduction : If she placed no other Section 179 property in service during year and was not subject to any income limitations, how much is her maximum Section 179 deduction
Emotional intelligence concepts : Using emotional intelligence concepts from this course, briefly explain what Francen's bad mood may cause.
What is the rate of return investors : Assume these investments sell for $1,289 in return for which you receive $5,000 in 35 years. What is the rate of return investors earn on this investment
Future costs relevant in decision-making process : Which costs would be utilized in making the decision to purchase the asset? Are future costs relevant in the decision-making process?
Describe key characteristics of various cost behaviours : Describe key characteristics and graphs of various cost behaviours. Describe how to use the high-low method to analyze cost behaviour
EMS5RCE Risk Engineering Assignment : EMS5RCE Risk Engineering Assignment Help and Solution, La Trobe University - Assessment Writing Service - what category, etc. Set-up a risk matrix and score
Calculate the minimum price per unit swan river should bid : Swan River plans to fill the order by adding the 10,000 units to its regular production. Calculate the minimum price per unit Swan River should bid

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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