User Account

All Pages

What would the value today be if payments occurred forever

Assignment Help Financial Management
Reference no: EM131847886

An investment offers $7,000 per year for 15 years, with the first payment occurring one year from now.

If the required return is 6 percent, what is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Present value $

What would the value today be if the payments occurred for 40 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Present value $

What would the value today be if the payments occurred for 75 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Present value $

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

Present value $

Reference no: EM131847886

Questions Cloud

Committing acts that are discreditable to the profession : Committing acts that are “discreditable to the profession” can be a reason for revoking a member’s CPA certificate under the AICPA Code of Ethics.
Your insurance premium for your autos : Your insurance premium for your autos are due and you have two options:
Find the present values of these ordinary annuities : Find the present values of these ordinary annuities. Discounting occurs once a year.
At what rate have sales been growing : Growth rates Sawyer Corporation's 2015 sales were $13 million. Its 2010 sales were $6.5 million. At what rate have sales been growing?
What would the value today be if payments occurred forever : An investment offers $7,000 per year for 15 years, What would the value today be if the payments occurred forever?
Loan amortization and EAR : Loan amortization and EAR You want to buy a car, and a local bank will lend you $25,000. What will be the monthly loan payment?
Present value for various discounting periods : Present value for various discounting periods Find the present value of $200 due in the future under each of these conditions:
Firms in relation to financial management : examine ethical behavior within firms in relation to financial management.
How much does he need to sell in order to break even : What are his fixed costs? How much does he need to sell in order to break even.

Reviews

Write a Review

Financial Management Questions & Answers

  Zero coupon bond-what was your total return for past year

You purchased a zero coupon bond one year ago for $173.85. The market interest rate is now 9 percent. If the bond had 20 years to maturity when you originally purchased it, what was your total return for the past year? Assume semiannual compounding. ..

  Considering test marketing for your new product

You are considering test marketing for your new product. There is a 30 percent chance that the results of the test marketing will be positive, in which case the expected NPV of the project be $50 million; but there is also a 70 percent chance that th..

  Current treasury bond yield curve is upward sloping

Suppose that the current treasury bond yield curve is upward sloping. Under this condition, we could be sure that

  Forced to buy the underlying stock-lower volatility results

If you __________, then you may be forced to buy the underlying stock. Lower volatility results in __________ Put Option prices and ______ Call Option Prices.

  What is the residual value of the firm

Baseline (last year) sales: $250 million Sales growth rates: Base year = 15% with a fade rate of 1% a year for years 1-10: (increasing sales due to sustained competitive advantage and a differentiated product)[source: Strategic Plan]. Fade rate is th..

  Coupon bonds on the market with five years

Tiango. has 9 percent coupon bonds on the market with five (5 ) years left until maturity. These bonds make annual payments. If the yield to maturity on t he bond is 8 percent, what is the current price of the bond? What would be the pr ice of the bo..

  What are some reasons for mergers

What corporate merger have you heard discussed in the media recently? What are some reasons for mergers? What are some challenges companies have faced with mergers? Do consumers benefit from mergers, why or why not?

  What is the appropriate price of bond

The appropriate discount rate for a bond of this risk would be 10% if it paid in dollars. What is the appropriate price of the bond?

  Calculate the debt ratio for firm

You have been asked to calculate the debt ratio for a firm that has following components to its financing firms: the firm has 1 million shares outstanding,trading at $50 per share, the firm has &25 milion in straight debt,carrying a market interest r..

  What is fair price for bond-left until maturity that yields

What is the fair price for a bond with a 6% annual coupon and 8 years left until maturity that yields 7%? How much would you pay for a semi-annual 5% coupon bond with 25 years left until maturity that yields 3.50%? What is the yield to maturity of an..

  Considering the purchase of new computer system

Nguyen, Inc., is considering the purchase of a new computer system (ICX) for $130,000. The system will require an additional $30,000 for installation. If the new computer system is purchased, it will replace an old system that has been fully deprecia..

  Because of international fisher effects

Because of international Fisher effects, currencies with __________ interest rates will ___________.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd