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

Author Question: What is the value of an asset which pays 200 a year for the next 5 years and can be sold for 1,500 ... (Read 50 times)

mckennatimberlake

  • Hero Member
  • *****
  • Posts: 559
on: Jul 11, 2018
What is the value of an asset which pays 200 a year for the next 5 years and can be sold for 1,500 at the end of five years from now? Assume that the opportunity cost is 10 percent.
 
  What will be an ideal response?

Question 2

Government can obtain funds ________.
 
  A) by trading in equity market
  B) by issuing financial instruments such as futures and options
  C) through forex market
  D) by selling debt securities


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

alexanderhamilton

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jul 11, 2018
Answer to Question 1

Using Financial calculator: FV=1500, PMT=200, N=5, I=10, CPT PV = -1689.54
The value of the asset = 1,689.54.

Answer to Question 2

D


mckennatimberlake

  • Member
  • Posts: 559
Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review

at

  • Member
  • Posts: 359
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Defying thousands of years of conventional wisdom, scientists are reporting that it is possible for Defying thousands of years of conventional wisdom, scientists are reporting that it is possible for
The Dingo was the first placental mammal introduced to Australia, around 4000 years ago The Dingo was the first placental mammal introduced to Australia, around 4000 years ago
The approval of a new drug is a four-stage process: (1) preclinical investigation, (2) clinical inve The approval of a new drug is a four-stage process: (1) preclinical investigation, (2) clinical inve
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
Infant: 4 weeks to 1 year. Infant: 4 weeks to 1 year.
Seven students have applied for merit scholarships. This year 3 merit scholarships were ... Seven students have applied for merit scholarships. This year 3 merit scholarships were ...
Video: Male Reproductive System - Testosterone

For a complete list of videos, visit our video library