What is the value today of a money machine

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-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

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