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Author Question: Assume that you own an annuity that will pay you $16,000 per year for14years, with the first payment ... (Read 30 times)

jenniferbaugh1984

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on: Aug 7, 2023

Question 1

An investment promises the following cash flow stream: $800at Time 0; $2,660at the end of Year 1; $3,425at the end of Year 2; and $4,500at the end of Year 3. At a discount rate of9%, what is the present value of the cash flow stream?

◦

$9,616.51


◦

$9,333.17


◦

$9,597.95


◦

$804.26



Question 2

Assume that you own an annuity that will pay you $16,000 per year for14years, with the first payment being made today. Your uncle offers to give you $130,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment?

◦

7.85%


◦

8.21%


◦

8.59%


◦

9.94%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by jenniferbaugh1984 on Aug 7, 2023

wangyichun

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jenniferbaugh1984

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

emsimon14

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Reply 3 on: Yesterday
Excellent

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