What is the value of your inheritance in todays dollars

Assignment Help Financial Management
Reference no: EM131487565

You have received an inheritance which will pay you $100,000 eight years from today. What is the value of your inheritance in today’s dollars if your discount rate is 7% compounded annually?

Reference no: EM131487565

Questions Cloud

Pinnacle deduct from its corporate taxable income : How much of the luxury skybox season ticket cost may Pinnacle deduct from its corporate taxable income?
Calculate the annual cash flows for each of investments : Calculate the annual cash flows for each of the following investments: $234,000 invested at 6 percent.
Seven-year loan-how much will each payment be : The Elkridge Bar & Grill has a seven-year loan of $25,300 with Bank of America. how much will each payment be?
Cost of equity capital with new capital structure would be : Assuming that the corporate tax rate is 40%, its cost of equity capital with the new capital structure would be?
What is the value of your inheritance in todays dollars : What is the value of your inheritance in today’s dollars if your discount rate is 7% compounded annually?
Benefits and drawbacks of leasing car rather than owning one : What are the benefits and drawbacks of leasing a car rather than owning one? Personal Finance: What is the role of the title search in making a home purchase?
What does the incremental borrowing cost measure : What does the incremental borrowing cost measure? Explain the pros and cons of inter-organizational relationships?
Calculate the annual cash flows for investments : Calculate the annual cash flows for each of the following investments:
Using spot and forward exchange rates : Using spot and forward exchange rates: The spot exchange rate for the Canadian dollar (CAD) is 1.14 CAD and the six-month forward rate is 1.17 CAD.

Reviews

Write a Review

Financial Management Questions & Answers

  Economically sound and properly ranks projects

The ________ method is economically sound and properly ranks projects across various sizes, time horizons, and levels of risk, without exception for all independent projects. Modified IRR Profitability Index NPV Discounted Payback Period

  Determine fair level of expected return

what is your best estimate of the alpha of your portfolio when using CAPM to determine a fair level of expected return?

  Find the project operating cash flows over five-year period

Annual savings from Project X include a reduction of ten clerical employees with annual salaries of $15,000 each, $8,000 from reduced production delays, $12,000 from lost sales due to inventory stock-outs, and $3,000 in reduced utility costs. Find th..

  What is the appropriate classification of this lease

Jostens, Inc leases a machine from Justins Leasing. What is the appropriate classification of this lease for Jostens?

  Contracts in the dow futures

You have taken a short position of 3 contracts in the Dow futures (trade $10 times the index) at a price of 16,300. The initial margin is $6,500 and the maintenance margin is $5,200 for the contract. At the time you entered the position you had equit..

  Required revenue to achieve the target operating income

Acme Medical Supply Company desires a target operating income amount of $100,000, with assumption inputs as follows: Compute the required revenue to achieve the target operating income and compute a contribution income statement to prove the totals.

  The dividend should grow rapidly

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $0.50 coming 3 years from today. what is..

  Assess the revenue-expense-profitability-liquidity-activity

Ratio analysis. Exhibit 4-21 lists the financial ratios for 227-bed Hollywood Community Hospital. Assess the revenue, expense, profitability, liquidity, activity, and capital statement of Hollywood for 20X1. Explain why these financial measures chang..

  How would taxes on businesses are expected

In a small open economy, how would Taxes on businesses are expected to be increased in the future events affect the equilibrium interest rate?

  The stockholders without creating any additional risk

An evaluation by the company's financial staff concludes that the company is holding too much cash. This situation is reported to the stockholders. How do you think the stockholders would react to this information? What options do you have to deal wi..

  What is its level of inventory

Soaring Eagles Corp. has total current assets of $11,674,000, current liabilities of $5,410,000 and a quick ratio of 0.77. What is its level of inventory?

  Assume that the current shape of the treasury yield curve

Assume that the current shape of the Treasury yield curve is in its "normal" position - slightly upward sloping. If plotted on the same graph, would the position of the commercial paper yield curve be higher, lower, or about the same position as that..

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