What is the value of this proposal

Assignment Help Accounting Basics
Reference no: EM132993039

Question - You work for? Sam, a financial planner. Sam has tasked you with evaluation the value of a proposal he has received. The proposal is an annuity that pays $110 every 3 months for 7 years. If the appropriate discount rate is an APR of 8.5% compounded? monthly, what is the value of this proposal.

What the present value?

What the effective interest rate for each 3?-month period?

Reference no: EM132993039

Questions Cloud

Calculate the sharpe ratio for each of these : Assuming a risk-free rate of 3.1 percent, calculate the Sharpe ratio for each of these. In broad terms, what do you suppose the Sharpe ratio is intended
Briefly outline what is a just-in-time system : Briefly outline what is a Just-in-Time system and explain why inventory holding cost can be regarded as being underestimated traditionally
What is the inflation premium on a seven-year treasury bond : Suppose that the annual expected rates of inflation over each of the next five years are 5 percent, What is the inflation premium on a seven-year treasury bond
Prepare the journal entries on books of Sarasota Corporation : Prepare the journal entries on the books of Sarasota Corporation to record the transactions described above, assuming that the 20% interest in WLT
What is the value of this proposal : If the appropriate discount rate is an APR of 8.5% compounded? monthly, what is the value of this proposal
Explain the various risks in international trade : Explain the various risks in international trade. Identify risks that are common in domestic rade and risks that are unique to international trade
Determine the current value of each investment : One earns 2.75%, compounded quarterly; the other earns 2.75%, compounded daily. Venly is now 17. Determine the current value of each investment
What rate of interest is the bank offering you : You must sign a loan contract calling for payments of K2, 545,160 at the end of each of the next 25 years. What rate of interest is the bank offering you
What are the convexity and the duration of the bond : A newly issued bond has a maturity of 10 years and pays a 5.5% coupon rate. What are the convexity and the duration of the bond

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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