What is the value today of a money machine

Assignment Help Finance Basics
Reference no: EM133119270

-What is the value today of a money machine that will pay $3,391.00 per year for 23.00 years? Assume the first payment is made 7.00 years from today and the interest rate is 10.00%.

-What is the value today of a money machine that will pay $4,649.00 every six months for 17.00 years? Assume the first payment is made six months from today and the interest rate is 13.00%.

-What is the value today of a money machine that will pay $7,879.00 per year for 35.00 years? Assume the first payment is made today and that there are 35.0 total payments. The interest rate is 7.00%.

-Derek will deposit $9,652.00 per year for 28.00 years into an account that earns 5.00%, The first deposit is made next year. He has $12,839.00 in his account today. How much will be in the account 39.00 years from today?

-What discount rate would make you indifferent between receiving $3,125.00 per year forever and $5,471.00 per year for 23.00 years? Assume the first payment of both cash flow streams occurs in one year.

Reference no: EM133119270

Questions Cloud

What is the marginal tax rate for a corporation : What is the marginal tax rate for a corporation with $60,000 of taxable income and an average tax rate of 18% if the next-lowest marginal tax rate of 15% covers
Calculate the income effect of dividends on preferred shares : The balances at December 31, 2020 do not reflect the conversion of April 1, 2020. Calculate the income effect of the dividends on preferred shares
Shares outstanding on a fully diluted basis : Assume in a VC financing, company M's pre-money valuation is $6 million, the amount invested by the VC investors is $4 million. The principal plus accrued inter
Is ann wood high-involvement manager : Is Ann Wood a high-involvement manager? If so, provide evidence. If not, how well do you think she'll perform in her new job as head of marketing?
What is the value today of a money machine : -What is the value today of a money machine that will pay $3,391.00 per year for 23.00 years? Assume the first payment is made 7.00 years from today and the int
Impact of entering this swap on the duration : -What is the impact of entering this swap on the duration of the corporation's debt? (Increase / decrease answer is fine, no detailed calculation required)
About the nature of competition in industry : Apply the five forces model to your industry. What does this model tell you about the nature of competition in the industry?
How much should you invest now : Question - Assume you want to invest an amount now to receive an annual return of $25,000 for ever, How much should you invest now
What is the impact of entering this swap on the duration : -You are a corporate treasurer and you would like to convert the exposure your firm has to a 10 year $100,000,000 bond issue it plans to make in the coming days

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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