You have two contracts available to you: ONE is a perpetuity with cash flows of 500 per year, with the first cash flow beginning today. TWO is a perpetuity with cash flows of 500 per year, with the first cash flow beginning one year from today.
Which has a greater present value if the required rate of return is 5?
A) Contract ONE is preferred because it has a present value that is 500 greater than contract TWO.
B) Contract TWO is preferred because it has a present value that is 500 greater than contract ONE.
C) Contract ONE is preferred because it has a present value that is 476.19 greater than contract TWO.
D) Because these are perpetuities with equal required rates of return, they have equal value.
Question 2
Today is your 21st birthday and your bank account balance is 25,000. Your account is earning
6.5 interest compounded monthly. How much will be in the account on your 50th birthday?
A) 159,795 B) 162,183 C) 164,631 D) 163,823
The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own
Sample budget spreadsheet form for first year of business.
The average weight gain between Thanksgiving and New Year's Day is about a pound
Kahan (Last Year)
The Serial Numbers for Each Day of the Year