What is the current value of the annuity

Assignment Help Financial Accounting
Reference no: EM131300203

A 4-year annuity of eight $8,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now If the discount rate is 14 percent compounded monthly, what is the value of this annuity five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of the annuity If the discount rate is 14 percent compounded monthly, what is the value three years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of the annuity If the discount rate is 14 percent compounded monthly, what is the current value of the annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of the annuity 

Reference no: EM131300203

Questions Cloud

Calculate the coefficient of variation for each project : Which project is least? risky, judging on the basis of range? Calculate the coefficient of variation for each project. Which project do you think? Greengage's owners should? choose?
Draw the cash flow diagram : A software engineer planning for his retirement will deposit 12% of his salary each year into a high technology stock fund. If his salary this year is S 120,000 and he expects his salary to increase 5% each year, how much will he have in the fund aft..
What is required rate of return on equity for each company : North Pole Fishing Equipment and South Pole Fishing Equipment would have identical equity betas of 1.25 if both were all equity financed.  What is the equity beta of each of the two companies? What is the required rate of return on equity for each co..
What is the adjusted present value of the project : Zulu Car Rental Corporation is trying to determine whether to add 25 cars to its fleet. The company fully depreciates all its rental cars over 5 years using the straight line method. The new cars are expected to generate $140,000 per year in earnings..
What is the current value of the annuity : A 4-year annuity of eight $8,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now If the discount rate is 14 percent compounded monthly, what is the value of this annuity five years from now? what is t..
Value of the annuity : A 4-year annuity of eight $8,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now If the discount rate is 14 percent compounded monthly, what is the value of this annuity five years from now? Value of ..
Market to book value ratios be misleading : Under what circumstances would market to book value ratios be misleading? Explain.? Describe the quality issues related to reporting revenue. What is the importance of understanding various inventory valuation methods in determining the quality of re..
Different investment plans : Your financial planner offers you two different investment plans. Plan X is a $10,000 annual perpetuity. Plan Y is a 17-year, $14,000 annual annuity. Both plans will make their first payment one year from today. At what discount rate would you be ind..
What return is this investment offering : A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $13, 300 each, with the first payment occurring today, your child's 12th birthday. Beginning on your child's 18th birthday, the plan ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find out how the company you selected should address

find out how the company you selected should address its free cash flow, either through distributions to shareholders or repurchasing of stock. Explain your rationale.

  Using the new residual value

Wholesale Hardware Consultants purchased a building for 620,000 and depreciated it on a? straight-line basis over a 25?-year period. The estimated residual value is $120,000. Starting with the 16th? year, Wholesale began depreciating the building ove..

  Calculate the effect of these events and transactions

At a company, events and transactions during 2014 included the following. The tax rate for all items is 30%. Calculate the effect of these events and transactions on 2014 income from continuing operations net of tax. Display your work in detail.

  Subsidiary income recognized

On January 1, 2012, Uncle company purchased 80 percent of nephew Company's capital stock for $548,000 in cash and other assets. Assume that Uncle applies the equity method to account for this investment in Nephew. What is the subsidiary's income reco..

  Explain issuing procedures used in bond transactions

Indicate the types of bonds he might issue, and explain issuing procedures used in bond transactions. Write a memorandum to the president, answering his request.

  Values using absorption and variable costing relationships

Solving for Missing Values Using Absorption and Variable Costing Relationships- Kester Company had ending inventory cost of $5,000 under absorption costing. Ending inventory cost $3,400 under variable costing. Kester produced 16,000 units and sold 15..

  Calculate the target cost required to continue

Calculate the target cost required to continue current market share, while earning a profit of $4 per unit. Now, calculate the target cost required to expand sales by 50 percent. How much cost decrease would be obligatory to achieve each target

  Uses activity-based costing

TThomas, Inc uses activity-based costing. The company produces two products, 001 and 002. Information relating to the two products is as follows: Units produced, 001is 38,000. 002 is 50,000. Machine-hours, 001 is 15,000. 002 is 17,000. Direct labor-h..

  Average accounting performance

Using the information provided, calculate this firm's ROA, ROE, gross profit margin, and quick ratio. If this firm's WACC is 6.6% and the average firm in its industry has an ROA of 8%, is this firm earning above or below normal economic performance a..

  What is case net income

Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2011 income taxes. What is Case net income?

  Illustrate what is the annual after tax cash flow

Illustrate what is the annual after tax cash flow? What is the payback based upon the initial cash outflows? What is the discounted payback based upon the initial cash outflows? What is the simple rate of return based upon the initial cash outflows?

  Computation of contribution margin ratio

Computation of contribution margin Ratio, BEP, and margin of Safety and Find Aunt Pitty's breakeven level of sales revenues and determine auto Pitty's Margin of Safety in the most recent year?

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