What would the value be if payments occurred forever

Assignment Help Financial Management

Reference no: EM131995638

An investment offers $6,500 per year for 20 years, with the first payment occurring one year from now.

If the required return is 7 percent, what is the value of the investment? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Present value $

What would the value be if the payments occurred for 45 years? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Present value $

What would the value be if the payments occurred for 70 years? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Present value $

What would the value be if the payments occurred forever? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Present value $

Hints

References

eBook & Resources

Reference no: EM131995638

Questions Cloud

What is the implicit interest rate in this transaction : What is the implicit interest rate in this transaction?

What are the different industry types : What are the different industry types? What are the main characteristics of each?

What type of diversification strategy does the launch : What type of diversification strategy does the launch of Tesla Energy represent: related or unrelated? Explain why.

What are some of the red flags in business plans : What are some of the red flags in business plans? What makes these issues an obstacle in locating investors?

What would the value be if payments occurred forever : What would the value be if the payments occurred forever? If the required return is 7 percent, what is the value of the investment?

Create an agenda of activities for the training program : Select key training method(s) to deliver the program to employees, such as an e-Learning module or a one-day face-to-face training program.

Write a letter on marketing services : XYZ Company has threatened to cancel their marketing services with us. We are bringing in business for them, but they are not convinced our methods are working.

Protective covenants usually included in loan contracts : Which of the following is not true about security provisions and protective covenants usually included in loan contracts?

What is amount she must deposit monthly to reach her goal : Her account earns 3.7% APR, what is the amount she must deposit monthly to reach her goal?

User Account

All Pages