Which investment has higher present value

Assignment Help Financial Management
Reference no: EM132009886

1. You are offered the choice between two investments. The first investment, Investment A, pays $2500 per year for ten years. The second, Investment B, pays $5000 per year for five years. Which investment has a higher present value if the discount rate is 5%? How about if the discount rate is 25%?

2. Your full-service brokerage firm charges $165 per stock trade.

How much money do you receive after selling 310 shares of International Business Machines (IBM), which trades at $85.37?(Round your answer to 2 decimal places.)

Reference no: EM132009886

Questions Cloud

Moral issues of ruling : She is currently in a custody fight with her ex-husband. What are the moral issues of this ruling and what rights are at stake?
Satir human growth model : What are the strengths and weaknesses of the Satir's Human Growth model?
What is the current ratio : What is the Current Ratio? What is the general rule as to what Days in Receivables SHOULD be according to our discussion
Why is it useful to use the california q set rating system : Why is it useful to use the California Q set rating system rather than having people rate each item individually on a 9-point scale?
Which investment has higher present value : You are offered the choice between two investments. Which investment has a higher present value if the discount rate is 5%?
Does prejudice against visible minorities play : Please help me understand why or why not? Does prejudice against visible minorities play a role in the assessment of immigrants' qualifications
Summarize and explain rowes argument : Do you agree with Rowe that it seems unlikely that all instances of intense human and animal suffering lead to greater goods?
Trying so hard to make a good impression : Is detecting a bad fit for your friend possible when the date is trying so hard to make a good impression.
What is the stock current value per share : The required rate of return on the stock, rs, is 15%. What is the stock's current value per share?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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