Calculate the present value annuity in millions of dollars
Course:- Financial Management
Reference No.:- EM13942955

Assignment Help
Assignment Help >> Financial Management

You have won a lottery which will pay you 10 annual checks of $3 million each. Your checks will begin arriving starting a year from now. Calculate the present value annuity in millions of dollars of these cash flows assuming a discount rate of 5%.

$23.16 million

$30.00 million

$22.23 million

$15.34 million

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
A five-year project has an initial fixed asset investment of $315,000, an initial NWC investment of $31,000, and an annual OCF of −$30,000. The fixed asset is fully depreciate
Assume that you are presently 30 years old and that you intend to retire when you turn 65. You would like to make sure that you have enough funds at the point of retirement to
MMK Cos. normally pays an annual dividend. The last such dividend paid was $2.15, all future dividends are expected to grow at a rate of 8 percent per year, and the firm faces
A financial institution offers a "double your money" savings account in which you will have $2 in 7 years for every dollar you invest today. What stated annual interest rate (
Assume that HOS could issue a zero coupon bond at an annual interest rate of 4 percent with semi annual compounding for 20 years. If HOS receives $2,264.45 for the bond, how m
Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow fr
Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.30 next year. The growth rate in dividends for all three companies is 5 percent. The required return f
Black Hill Inc. sells $100 million worth of 27-year to maturity 10.81% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $975 for each $1,000 bond. Wh