« previous next »

Author Question: What is the present value of the following perpetuities? a. 200 per year discounted at 6 annually ... (Read 58 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?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
essay on friendship written by a 10-year-old essay on friendship written by a 10-year-old
Kahan (Last Year) Kahan (Last Year)
Some of the Alleles present at white locus Some of the Alleles present at white locus
Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ... Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ...
Kindergarten school year book Kindergarten school year book
Video: Coaductile pathway, Timing of contraction signal & Conduction system and ECG

For a complete list of videos, visit our video library