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 70 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
Gracias!

Dnite

  • Member
  • Posts: 297
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Why Different Constellations Are Visible at Different Times of the Year Why Different Constellations Are Visible at Different Times of the Year
Effects of Therapy for Stuttering A functional MRI scan shows regions of the superior temporal lobe Effects of Therapy for Stuttering A functional MRI scan shows regions of the superior temporal lobe
Parenting Tips for Teen Years Parenting Tips for Teen Years
U.S. adults from 25 to 74 years report that the largest proportion of their daily stressors arise ... U.S. adults from 25 to 74 years report that the largest proportion of their daily stressors arise ...
Women who reported one, two, or three or more major life events in the past 5 years were ... Women who reported one, two, or three or more major life events in the past 5 years were ...
An overlapping record extends back thousands of years of tree ring width An overlapping record extends back thousands of years of tree ring width
Video: Muscle Twitch and Muscle Tension - Motor unit size and force

For a complete list of videos, visit our video library