This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume that you own an annuity that will pay you $16,000 per year for14years, with the first payment ... (Read 139 times)

jenniferbaugh1984

  • Full Member
  • ***
  • Posts: 158
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jenniferbaugh1984 on Aug 7, 2023

wangyichun

  • Full Member
  • ***
  • Posts: 179
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.
Answer Preview
Only 25% of students answer this correctly


jenniferbaugh1984

  • Member
  • Posts: 158
Reply 2 on: Aug 7, 2023
:D TYSM

scikid

  • Member
  • Posts: 300
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own
A 5,000-year-old Egyptian garment A 5,000-year-old Egyptian garment
Chelsea Donahue has a​ 20-year home mortgage of ​78,000 at​ 7.50% interest and will pay ... Chelsea Donahue has a​ 20-year home mortgage of ​78,000 at​ 7.50% interest and will pay ...
A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ... A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ...
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
The Serial Numbers for Each Day of the Year The Serial Numbers for Each Day of the Year
Video: Homeostasis (range of body conditions, normal limits, mild stresses & severe stresses)

For a complete list of videos, visit our video library