What is the value of this endowment in today dollars

Assignment Help Finance Basics

Reference no: EM13272136

A wealthy philanthropist has established the following endowment for a hospital. The details are as follows: a cash deposit of $ 10 M one year from now; an annual cash deposit of $5M per year for the next five years. The first $2M will start today. At the end of 5 years, the hospital will also receive a lump sum payment of $15M. Assuming the cost of money is 5%, what is the value of this endowment in today's dollars? Show your work.

Reference no: EM13272136

Questions Cloud

What is the probability that the company will make more : Life Insurance: On average about 9 out of 1,000 people die prematurely in the United States each year. (a) If a life insurance company wants to sell $100,000 life insurance policies to the public, how much should it charge each client in order to ..

State the osmotic pressure of a solution : What is the osmotic pressure of a solution made from dissolving 50.0g of glucose rm C6H12 O6 in 250mL of water at 36.0 C

Explain the impact of knowledge workers on the requirements : All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Calculate the cash outflow under lease finance : Calculate the cash outflow under lease financ

What is the value of this endowment in today dollars : Assuming the cost of money is 5%, what is the value of this endowment in today's dollars? Show your work.

Explain expansion connects the same initial and final states : What would ?U and w be if the expansion connects the same initial and final states as in (a) but is done by having the perfect gas expand into a vacuum.

What is the annual ocf for the project : If the tax rate is 40 percent, what is the annual OCF for the project? (Do not include the dollar sign ($). Round your answer to the nearest whole dollar amount (e.g., 1,234,567).)

Determine the range of stable gain for the system : Determine the range of stable gain for the following system using the Routh test. s4 + 3s3 + 12s2 + (K - 16)s + K = 0

What was its charge for depreciation and amortization : What was its charge for depreciation and amortization? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

User Account

All Pages