What is the value of the investment to you today

Assignment Help Finance Basics
Reference no: EM132386383

You are valuing an investment that will pay you $22,000 per year for the first 9 years, $26,000 per year for the next 12 years, and $39,000 per year the following 15 years (all payments are at the end of each year). If the appropriate annual discount rate is 8.00%, what is the value of the investment to you today?

Reference no: EM132386383

Questions Cloud

Explain plain terms the concept of monetary policy : Briefly explaining in plain terms the concept of monetary policy, also indicate who in the United States oversees and implements monetary policy.
What is the present value of the stream of payments : If you feel the appropriate annual discount rate is 10%, what is the present value of the stream of payments you will receive?
What total dollar amount of mortgage payments : What total dollar amount of their mortgage payments during the first 8 years will go towards repayment of principal?
Discuss three general categories of cash flow activities : Discusses three general categories of cash flow activities: Operating, Investing, and Financing. Briefly explain each of these three categories.
What is the value of the investment to you today : If the appropriate annual discount rate is 8.00%, what is the value of the investment to you today?
Why the state lottery is not willing to give fred the full : Fred just won the state lottery and was given two options for receiving his money. He can take a single lump-sum payment of $21.7 million today.
What annual rate of return is the investment offering : You are told that if you invest $10,700 per year for 25 years (all payments made at the beginning of each year) you will have accumulated $398,000
What amount must you deposit each year to reach : What amount must you deposit each year to reach your goal?
Weekly compounding of interest : How many years will it take for $241,000 to grow to be $511,000 if it is invested in an account with a quoted annual interest rate of 9% with weekly compounding

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the effective annual interest rate

What is the effective annual interest rate on this lending arrangement?

  What are money market mutual funds

In what assets do these funds typically invest? What factors caused the strong growth in this type of fund from 1992 through 2007?

  Replacing old equipment at an immediate cost

Replacing old equipment at an immediate cost of $5000 and $7000 six years from now will result in a savings of $3000 semi-annually for ten years. At 11% compounded annually, should the old equipment be replaced?

  Prepare a simple balance sheet of assets

Assume that Banc One receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and liabilities for Banc One immediately after the deposit is received.

  Match the appropriate letter for the key term or concept to

match the appropriate letter for the key term or concept to each definition provided items 1-15. note that not all key

  Discuss why this is a correct prediction or recommendation

Discuss why this is a correct prediction or recommendation. Is it possible to have too much liquidity? Why or why not? If possible, provide specific examples to explain your position.

  Difference between cash flow

In your own words, what is the difference between cash flow, profit, and net income.

  Issues of concern facing the marketing industry

Discuss this issues of concern facing the marketing industry.

  Evaluate the cash flow and depreciation

Cash Flow and Depreciation. "When evaluating projects, we're only concerned with the relevant incremental aftertax cash flows.

  What is the difference between parts a and b

Determine which will offer the largest internal rate of return for AWS.

  Determine the annual budget for office utilities using data

Determine the annual budget for office utilities using the data from the past 12 months shown in Figure 9-7. Utility costs are expected to increase by 8% per year due to inflation. None of the company's goals are expected to affect the utility costs.

  What is the current market value of elite’s bond

Eleven years ago, Elite Elements issued a 15-year bond with a $1,000 face value and a 5 percent coupon rate of interest (paid semiannually). If investors require a return equal to 7 percent to invest in similar bonds, what is the current market va..

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