Expected return for the investment

Assignment Help Business Economics
Reference no: EM131011406

What is the value of an investment that will pay investors 8,690 dollars per year for 5 years and will also pay investors an additional 9,650 dollars in 3 year(s) from today if the expected return for the investment is 11.15 percent per year and the first annual payment of 8,690 dollars will be paid to investors in exactly one year from today?

Reference no: EM131011406

Questions Cloud

Please provide the proper journal entries : Purity Landscaping Co. usually receives a monthly phone bill for $200, in which a check is issued for immediately. However, for this month end, the bill never came.
The market value of an investment project : The market value of an investment project should be viewed as the sum of the standard NPV and the value of managerial options. Explain three different real or managerial options that management may have, what they are, and how they would influence ma..
Find yourself in a repeated prisoners dilemma : Suppose you are Coca-Cola and you are competing with Pepsi-Cola. Both of you would make more money if you advertised less - but you find yourself in a repeated prisoner's dilemma where you both are deciding to advertise. How would you prefer to deal ..
What were green mountain total liabilities : Find the annual 10-K report for Green Mountain Coffee Roasters (GMCR) online for 2012 (filed in September 2012). Answer the following questions from its balance sheet: How much cash did Green Mountain have? What were Green Mountain total assets? What..
Expected return for the investment : What is the value of an investment that will pay investors 8,690 dollars per year for 5 years and will also pay investors an additional 9,650 dollars in 3 year(s) from today if the expected return for the investment is 11.15 percent per year and the ..
Portfolio risk and return : Portfolio Risk and Return. Suppose that the S&P 500, with a beta of 1.0, has an expected return of 13% and T-bills provide a risk-free return of 4%. How would you construct a portfolio from these two assets with an expected return of 8%? Specially wh..
Raised the maximum amount of short-term funds : The Nelson Company has $1,875,000 in current assets and $625,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term..
Jacobi company balance sheet was the following shareholders : Included in the December 31, 2012, Jacobi Company balance sheet was the following shareholders' equity section:
Plans to repay this loan by making payments : Bianca took out a loan from the bank today for X. She plans to repay this loan by making payments of 2,700 dollars per month for a certain amount of time. If the interest rate on the loan is 0.47 percent per month, she makes her first payment of 2,70..

Reviews

Write a Review

Business Economics Questions & Answers

  Trade surplus and trade deficit

U.S. exports as a percentage of GDP have increased, but have not nearly doubled over the last 50 years. The U.S. currently has a trade surplus. U.S. exports as a percentage of GDP have about doubled over the last 50 years. The U.S. currently has a tr..

  Explain what is meant by the term informational asymmetries

Please explain what is meant by the term informational asymmetries. What problems can these asymmetries create for participants in the money and capital markets and the financial system?

  Describe how producer surplus is measured

Describe "how" producer surplus is measured?

  Risk-averse gold prospector who has struck it rich

Lucky Midas is a risk-averse gold prospector who has struck it rich. He has $W worth of gold— his only wealth—safely stashed away on his claim in the Yukon. He wants to get his gold from his claim to the big city where he hopes to spend it. His frien..

  Why might investment not respond negatively to high interest

Why might investment not respond positively to low interest rates during a recession? Why might investment not respond negatively to high interest rates during a boom?

  Estimated the price elasticity for cigarettes

It has been estimated that the price elasticity for cigarettes is 0.164. Assuming there are currently no taxes on cigarettes, to reduce cigarette purchases 5%, government would need to tax cigarettes enough t.:

  Describe an experiment that would quantify

Describe an experiment that would quantify these two effects. Randomly select n students who have taken test only one time.

  In performing a test of controls for sales order approvals

In performing a test of controls for sales order approvals, the CPAs stipulate a tolerable deviation rate of 8 percent with a risk of assessing control risk too low of 5 percent. They anticipate a deviation rate of 2 percent. What type of sampling pl..

  What is slope of budget constraint-Find the optimal X and Y

Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6.  Is the MRSx,y increasing, decreasing, or constant with respect to X? What is the slope of the budget constraint? Find the optimal X and Y.

  Example of consistent fiscal policy and monetary policy

Give an example of consistent Fiscal Policy and Monetary Policy that you would choose to correct unemployment gap (Recession) that you suspect in the economy?

  Nominal anchor for the conduct of monetary policy includes

A cost of using Fed discount operations to prevent bank panics would be ______. Economics of scale explains the existence of financial intermediaries because of ______. Benefits of using a nominal anchor for the conduct of monetary policy includes __..

  Describes perfectly and monopolistically competitive firm

For each of the following characteristics, say whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. sells a product differentiated from that of its competitors. has marginal revenue less than price

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