Reference no: EM133115534
1. A mortgage instrument pays $1.5 million at the end of each of the next two years. An investor has an alternative investment with the same amount of risk that will pay interest at 8% compounded semiannually. What the investor should pay for the mortgage instrument?
2. The great, great grandparents of one of your classmates sold their factory to the government 104 years ago for $150,000. If these proceeds had been invested at 6%, how much would this legacy be worth today? Assume annual compounding.
3.A friend who owns a perpetuity that promises to pay $1,000 at the end of each year, forever, comes to you and offers to sell you all of the payments to be received after the 25th year for a price of $1,000. At an interest rate of 10%, should you pay the $1,000 today to receive payment numbers 26 and onwards? What does this suggest to you about the value of perpetual payments?
4. Your aunt, in her will, left you the sum of $5,000 a year forever with payments starting immediately. However, the news is better. She has specified that the amount should grow at 5% per year to maintain purchasing power. Given an interest rate of 12%, what is the PV of the inheritance?
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What will be the December adjusting general journal entry
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Maintain a minimum public holding
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What is the maximum number of withdrawals
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What is the npv of the project
: You are considering a project that has an initial outlay of $1.2 million. The profitability index of the project is 2.64. What is the NPV of the project?
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What the investor should pay for the mortgage instrument
: 1. A mortgage instrument pays $1.5 million at the end of each of the next two years. An investor has an alternative investment with the same amount of risk that
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List the items and amounts that make up the land account
: Cost of demolition of building to make land suitable for construction of new building 32,000. List the items and amounts that make up the Land account
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Detailed calculations of expected accumulated money
: After graduation, you have been earning consistently for several months either through employment or self-employment. Even though you are now moderately financi
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Which legislation would dictates the law of a fund
: Which legislation would dictates the law of a fund that is an equity mutual fund solely invested in blue chip stocks?
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How much can Nelson short-term debt increase
: The Nelson Company has $1,421,000 in current assets and $490,000 in current liabilities. How much can Nelson short-term debt increase
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