An investment offers

Assignment Help Financial Management
Reference no: EM13976507

An investment offers $3,300 per year for 19 years, with the first payment occurring one year from now. If the required return is 8 percent, the present value of the investment is $___. If the payments occurred for 34 years, the present value of the investment would be $___. If the payments occurred for 99 years, the present value of the investment would be $___. If the payments last forever, the present value would be $___.

Reference no: EM13976507

Questions Cloud

Tax-exempt fund is considering investing : The portfolio manager of a tax-exempt fund is considering investing $500,000 in a debt instrument that pays an annual interest rate of 5.7% for four years (annual compounding). Suppose that the portfolio manager in part a has the opportunity to inves..
Capital budget be before common stock : JPR company is financed 75% by equity and 25% by debt. if the firm expect to earn 30 million in net income next year and retain 40% of it, how large can the capital budget be before common stock must be sold ? 15.5 million 7.5 million 16.0 million 12..
What is the federal funds rate and target rate : What is the federal funds rate? What is the federal funds target rate? What is federal funds effective rate? The FOMC uses the open market operation to ensure that the effective federal funds rate fluctuates closely around the target. What is the cur..
You are a manager in a multi-national manufacturing company : Case study scenario: You are a manager in a multi-national manufacturing company who has been sent to set up a large subsidiary in South Africa. Prepare a management report for the Chief Executive Officer (CEO) of the company giving your recommendati..
An investment offers : An investment offers $3,300 per year for 19 years, with the first payment occurring one year from now. If the required return is 8 percent, the present value of the investment is $___. If the payments occurred for 34 years, the present value of the i..
Equity markets are cleaner-more reliable than stock markets : In light of the Enron, Worldcom, option back dating, government bailouts/nationalizations and Madoff scandals, do you think U.S. equity markets are cleaner and more reliable than stock markets in the rest of the world?
What is the return on assets : The After Life has sales of $428,300, total assets of $389,100, and a profit margin of 7.2 percent. What is the return on assets?
What is the equilibrium price : Price is $10 quantity demanded is 100 units, and quantity supplied is 130 units. For each dollar decline in price, quantity demanded rises by 5 units, and quantity supplied falls by 5 units. What is the equilibrium price?
Brokerage account-how many year will take to reach your goal : You have $31,698 in a brokerage account, and you plan to deposit an additional $4000 at the end of every future year until your account total $240000. You expect to earn 13% annually on the account. How many years will it take to reach your goal?

Reviews

Write a Review

Financial Management Questions & Answers

  What are just-in-time inventory models

How does the firm's required rate of return on investment enter into inventory decisions? What are just-in-time inventory models?

  Investment banking firm

A. You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. What is the monthly payment on this loan? When you make the third payment, how much of the payment is interest?

  About the sensitivity analysis

Sensitivity analysis: a. is a logical extension of partitioning to determine what portions of the forecast merit further refinement. b. is similar in form to payback analysis, except that it is done on a present value basis. c. is a substitute for th..

  What is its times-interest-earned ratio

Graser Trucking has $25 billion in assets, and its tax rate is 30%. Its basic earning power (BEP) ratio is 19%, and its return on assets (ROA) is 4%. What is its times-interest-earned (TIE) ratio?

  Default would equity holders preference for leasing plane

Western Airlines is considering a new route that will require adding an additional Boeing 777 to its fleet. Western can purchase the airplane for $225 million or lease it for $25 million per year. As a one-year decision, does purchasing or leasing th..

  How should eec tie performance measures to compensation

Discuss unethical behavior that can result if the wrong performance measures are used to tie performance measures to compensation.

  Profits and revenues and to gain access

Discuss why firms are attracted to foreign markets, for example, to increase profits and revenues and to gain access to cheaper manufacturing. How may this affect the domestic country of the firm?

  Calculate the approximate market capitalization for GE

Assume General Electric (GE) has about 10.3 billion shares outstanding and the stock price is $37.10. Also, assume the P/E ratio is about 18.3. Calculate the approximate market capitalization for GE.

  Pairs of treasury securities

For each of the following pairs of treasury securities (each with $1000 par value), identify which will have the higher price:

  PV and Effective Annual Rate

Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm and her boss is selling securities that call for 4 payments of $50 (1payment at the end of each of the next 4 years) plus an extra paymen..

  Calculate operating cash flow for year by using all methods

The owner of a bicycle repair shop forecasts revenues of $212,000 a year. Variable costs will be $63,000, and rental costs for the shop are $43,000 a year. Depreciation on the repair tools will be $23,000. The tax rate is 40%. Calculate operating cas..

  Calculate the average daily balance and finance charge

Calculate the average daily balance and finance charge.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd