« previous next »

Author Question: What is the present value of the following perpetuities? a. 200 per year discounted at 6 annually ... (Read 72 times)

humphriesbr@me.com

  • Hero Member
  • *****
  • Posts: 550
on: Jul 11, 2018
What is the present value of the following perpetuities?
  a. 200 per year discounted at 6 annually
  b. 500 per year discounted at 9 annually
  c. 1,000 per year discounted at 5 annually
  d. 550 per year discounted at 8 annually
 
  What will be an ideal response?

Question 2

An investment will pay 500 in three years, 700 in five years and 1000 in nine years. If your opportunity rate
  is 6, what is the present value of this investment?
 
  What will be an ideal response?
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


af

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jul 11, 2018
Answer to Question 1

a. 3,333.33
b. 5,555.56
c. 20,000.00
d. 6,875.00

Answer to Question 2

1,534.79


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Men Present for Service during the Civil War Men Present for Service during the Civil War
Early in the twentieth century, when malnutrition was common, companies such as this one advertised Early in the twentieth century, when malnutrition was common, companies such as this one advertised
Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period
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 ...
Some of the Alleles present at white locus Some of the Alleles present at white locus
Video: Bacteriophage (Virus) - Mice Experiment

For a complete list of videos, visit our video library