What is your estimate of the present value

Assignment Help Accounting Basics
Reference no: EM132992371

Question - An investment pays $1000 every two years (first payment being at t=2). The payment on t=10 will not be paid, but all other payments are scheduled to be paid as planned. If the annual discount rate is assumed to be at 10%, what is your estimate of the present value of the investment (pick the closest integer)?

a. $4,527

b. $4,376

c. $4,158

d. $4,762

Reference no: EM132992371

Questions Cloud

What is the trade discount rate : If the average sticker price (list price) of these remaining vehicles at your dealership in PhP23,500, What is the trade discount rate
Which the proper journal entry to close an debit balance : Which the proper journal entry to close an $11,000 debit balance in the Dividends account would include? a credit to Income Summary for $11,000
What is the maximum price that you should be willing to pay : According to the dividend-discount model, what is the maximum price that you should be willing to pay for a share of Dettol
What are the total liabilities and stockholders equity : What are the Total Liabilities and Stockholder's Equity? What is the company's Net Income? What are the Total Current Assets?
What is your estimate of the present value : If the annual discount rate is assumed to be at 10%, what is your estimate of the present value of the investment (pick the closest integer)
How do calculate haslam profit margin : Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places.
What is the allocated sum of money in year zero : Assume the interest rate is at 6% for all the periods. What is the allocated sum of money in year zero (0)
Calculate the payment due to an employee : Calculate the payment due to an employee, Robyn Brown. Robyn has a base wage of $19.25 per hour. She worked 38 hours at normal time
What is the unit product cost for this job : If Job N-60 consists of 10 units, what is the unit product cost for this job? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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