What would the value be if the payments occurred forever

Assignment Help Financial Management
Reference no: EM131937042

An investment offers $7, 500 per years for 17 years, with the first payment occurring one year from now. Assume the required return is 8 percent.

What is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e g., 32.18.) Present value $

What would the value be if the payments occurred for 42 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.18.) Present value $

What would the value be if the payments occurred for 77 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.18.) Present value $

What would the value be if the payments occurred forever? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.18.) Present value $

Reference no: EM131937042

Questions Cloud

Determine the equivalent units for the first process : Sino-electronics East-Africa Ltd manufactures electric meters for sale to its African andMiddle-East customers. The product goes through three departments.
Compare and contrast inspiration vs expiration : How would a lab technician know if someone "cheated" and ate a fatty meal a few hours before having his blood drawn?
What is the line efficiency : You have just determined the actual number of workstations that will be used on an assembly line to be 25 using the assembly-line balancing procedure.
Major blood types in humans : Multiple alleles of the ABO blood group gene govern the four major blood types in humans (phenotypes A, B, AB, and O).
What would the value be if the payments occurred forever : An investment offers $7, 500 per years for 17 years, with the first payment occurring one year from now. Assume the required return is 8 percent.
What is wrong with the marketing assistant segmentation : A new product service company's marketing assistant tells his boss that the market segment for a new ergonomic chair is sedentary adults.
Write a swing program to display the name of your school : Write Swing program to display name of your school in a variety of fonts and sizes. Interface should include JTextPane, Font combo box and Font Size combo box.
Replication of dna complicated process : The replication of DNA is a complicated process during which DNA is occasionally damaged.
What is the value of the annual fixed deposit needed : What is the value of the annual fixed deposit needed to secure $2,000,000 30 years finm now?

Reviews

Write a Review

Financial Management Questions & Answers

  Opportunity costs-what is the irr of an investment

Opportunity costs. What is the IRR of an investment that cost $150,000 and has OCF of $30,000 dollars a year for 2 years and $48,000 for the next three years?

  Calculate the present value of the bond

Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. Calculate the present value of the bond.

  Indicate the effects of the previous transactions

Indicate the effects of the previous transactions on each of the following: net profit, retained earnings, total stockholders' equity. Use + to indicate an increase, - to indicate a decrease, and 0 to indicate no effect.

  Will it have less money available to lend

How would increasing loan loss reserves reduce the risk of bankruptcy for a smaller bank?- If a bank increases its loan loss reserves, will it have less money available to lend?

  Compare linear regression to the moving averages

Compare linear regression to the moving averages and smoothing techniques used in Week 1.

  Simplicity of our current progressive income tax system

Evaluate the equity, certainty, convenience, economy, and simplicity of our current progressive income tax system.

  Maturity risk premium on the two-year treasury security

Calculate the maturity risk premium on the 2-year Treasury security. Calculate the internal rate of return for the following investment:

  What is the annual rate of interest that bowflex charging

What is the annual rate of interest that Bowflex charging?

  Required rate of return assume that the risk-free rate

Required rate of return Assume that the risk-free rate is 6% and the expected return on the market is 11%. What is the required rate of return on a stock with a beta of 1.1? Round your answer to two decimal places.

  Secondary mortgage purchasing company

Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local bank. The original balance was $140,000 and was obtained 5 years ago with monthly payments at a 10% interest rate. The loan was to be fully amortized over 30 years..

  The bonds make semi-annual payments and currently sell

The bonds make semi-annual payments and currently sell for 105.09% of par. What is the current yield?

  What is the cost of common equity

Summerdahl Resorts' common stock is currently trading at $26.50 a share. The stock is expected to pay a dividend of $2.90 a share at the end of the year (D1 = $2.90), and the dividend is expected to grow at a constant rate of 7.90% a year. What is th..

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