What payment gives you the highest present value

Assignment Help Finance Basics
Reference no: EM132481669

The interest rate is 0% and will remain that way for the next 10 years. You can choose to receive a $1,000 payment in 2 years, 5 years or 8 years. What payment gives you the highest present value?

Reference no: EM132481669

Questions Cloud

Discuss the treatments available to the patient : Relate history to the diagnosis. What risk factors are present, and how does each predispose to disease? Explain the cause of the disease in this patient.
What role have assumed in the group : What role have you assumed in the group? Have you used any empowerment strategies in moving the group forward? If not, what strategy could you implement?
How has the institution changed over time : Discuss the history of your institution. How did it emerge? How did it come into existence? How has the institution changed over time?
Define sociology and sociological research : Define Sociology and Sociological Research, Stratification: Social Class & Global Inequality, Health, environment, social change & global community
What payment gives you the highest present value : You can choose to receive a $1,000 payment in 2 years, 5 years or 8 years. What payment gives you the highest present value?
Net present value of the investment in the furnace : What is the net present value of the investment in the furnace? (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)
How the culture tends to align with differences in culture : How the culture tends to align with the differences in culture that were discussed in the lecture (individualist v. collectivist, masculine v. feminine)
What is the present value of a 3-year annuity : What is the present value of a 3-year annuity of $300 if the discount rate is 7%? (Do not round intermediate calculations. Round your answer to 2 decimal places
Describe the unique impact or different rates of the problem : Based on your research, briefly describe 2 to 3 mechanisms to increase the cultural relevance of a prevention program with the identified population.

Reviews

Write a Review

Finance Basics Questions & Answers

  Suppliers to seattle health system offers

Suppose one of the suppliers to Seattle Health System offers terms of 3/20, net 60. When does the system have to pay its bills from this supplier? What is the approximate percentage cost of the costly trade credit offered by this supplier? (Ass..

  How much money does deposit be

Rather he chooses to me and you deposit into the retirement account starting on the 28th birthday and ending on his 65th birthday.

  What is the market price you are willing to pay to buy bond

Your broker is recommending a bond investment in a clothing company, Petty Foire, and you require a market return of 8%.

  Which investor bonds are better deals for savers

Suppose there are two investors. one has a project to build a factory; the other has a project to visit a casino and gamble on roulette. which investor has a greater incentive to issue bonds? which investor's bonds are better deals for savers?

  What is the ocf for this project

The project is estimated to generate $2,080,000 in annual sales, with costs of $775,000. If the tax rate is 35 percent, what is the OCF for this project?

  Prepare the worksheet entries for axel corp to eliminate

axel corporation acquires 100 of the stock of wheal company on december 31 year 4. the following information pertains

  Evaluate the success of the project

Evaluate the success of the project. Assume a discount rate of 11%. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).

  Calculate the payback period

Assume there is no need for additional investment in building the land for the project. The firm's marginal tax rate is 35%, and its cost of capital is 10%. Calculate the payback period (P/B) and the net present value (NPV) for the project.

  What was the cash flow to investors

During the same period, the company had $1,155,378 in interest expense, $1,023,285 in depreciation and amortization expense, and an average corporate tax rate of 35 percent. What was the cash flow to investors from operating activity during 2014..

  Interest rate futures

When long term interest rates are above 6%, the cheapest to deliver bond has

  Select one of the following funding organizations write a

select one of the following funding organizationsmiddot united way of americamiddot the robert wood johnson

  Who are the suppliers of loanable funds

Write a paper in which you discuss the following: Who are the suppliers of loanable funds? What are the six factors that determine the nominal interest rate

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