What is its present value and future value

Assignment Help Financial Management
Reference no: EM131177429

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of the year 4, $300 at the end of the year 5, and $500 at the end of the year 6. If other investments of equal risk earn 8% annually, what is its present value? Its future value?

Reference no: EM131177429

Questions Cloud

Identify recruitment strategies for the position : Identify recruitment strategies for the position. Create a list of questions to ask as well as a list of what you will be looking for in the ideal candidate.
Explain the companys strategic philanthropy : Research a Fortune 500 company, but do not use the same company you used. Examine the company's strategic philanthropy and how it impacts profits, brand, image and turnover, as well as society as a whole.
Stetson use an interest rate swap : As a manager of Stetson Bank, you are responsible for hedging Stetson’s interest rate risk. Stetson has forecasted its cost of funds as follows: Year Cost of Funds 1 6% 2 5% 3 7% 4 9% 5 7% It expects to earn an average rate of 11 percent on some asse..
Individual retirement? account : At age 23?, someone sets up an IRA? (individual retirement? account) with an APR of 55?%. At the end of each month he deposits ?$50 in the account. How much will the IRA contain when he retires at age? 65? Compare that amount to the total deposits ma..
What is its present value and future value : An investment will pay $100 at the end of each of the next 3 years, $200 at the end of the year 4, $300 at the end of the year 5, and $500 at the end of the year 6. If other investments of equal risk earn 8% annually, what is its present value? Its f..
Use an incremental analysis : An improvement to the roadwat is desired from a Philmont Scout Ranch to Springer iin northeastern New Mexico. Alternative N (for North) costs $2,400,000 initially and $155,000/year thereafter. Route SA will cost $4,200,000 initially and $88,000/year ..
Sales-variable costs and fixed operating costs : Yeatman Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 2 Year 3 Year 4 Unit Sales 5,500 5,200 5,700 5,820 Sale price $42.57 $43.55 $44.76 $46.79 Variable cost per unit $22.8..
What is the longest time spent waiting for a heart : What is the longest time spent waiting for a heart that would still place a patient in the bottom 1010% of waiting times? nothing days (Round to two decimal places as needed.)
What is the net present value of this lockbox arrangement : You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days. On an average day, your firm receives 1,380 checks with an average value of $780 each. The daily interest rate on Treasur..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the market yield-to-maturity

What is the market yield-to-maturity (YTM) of a Zero Coupon Bond that pays $1,000 face at maturity in 10 years from now? The current market price of this bond is $614. (use annual discounting ,fin. Calculator or approximate YTM formula)

  Connsidering purchasing new software suite

You are connsidering purchasing a new software suite for your consulting company. You estimate that the software will have a useful life of 5 years, with negligible market value at that point. what would be the maximum amount that you should spend on..

  What is the risk-neutral probability

Consider a three-period ( t = 0,1, 2, 3 ) binomial option pricing model. There are 3-period put options on the stock. The values of the underlying variables are S = $50, n = 3, K = $48, u =1.1, d = 0.9, r =1.02 (a) what is the risk-neutral probabilit..

  Repudiation released him from his duty to perform contract

Colby contracts in writing to sell his 2005 Dodge-brand pick-up truck to Efrem for $10,500. Colby agrees to deliver the truck on Friday, and Efrem promises to pay the $10,500 on the following Monday. Colby contends that Efrem’s repudiation released h..

  Calculate the impact of the exhibit on company profit

Infinity Designs, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Home and Ga..

  Effectiveness of the working capital guarantee program

The topic addressed in this module is financing international trade. One factor to consider here is the working capital guarantee program. That is, how is this program administered by outside agencies? Your discussion topic is to evaluate the effecti..

  Relatively small student loans from two different lenders

You have two relatively small student loans from two different lenders. The loans have the same principals but different interest rates: How many years will it take for you to pay off both loans? What is the cumulative dollar value of the interest th..

  Lines of business likely produce the most stable earnings

Use the information in Exhibit 1.10 to explain what amounts and proportions of Bank of America's earnings come from each different line of business. Which lines of business likely produce the most predictable or stable earnings?

  Prepare a set of financial statements

PREPARE A SET OF FINANCIAL STATEMENTS {Income Statement & Statement of Retained Earnings & Balance Sheet} for the Quarter ending 9/30/15

  Will new control system be adequate for the problem

Stoneworth Paving Company specializes in highway paving jobs for state of Virginia. When the State first awarded Stoneworth the contract, they stipulated a 1% penalty for each week Stoneworth was late on a completion date. If you were Preston, what c..

  Financial market is a comprehensive term

A financial market is a comprehensive term used to define any marketplace where buyers and sellers participate in the exchange of assets such as currencies, bonds, derivatives and equities. Financial markets are typically classified as having transpa..

  Debt will be used to repurchase shares of outstanding stock

U-Meyer and Associates, an online options broker, is an all equity firm with 60,000 shares of stock outstanding at a market price of $50 a share. The company has earnings before interest and taxes of $87,000. U-Meyer and Associates has decided to iss..

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