Calculate the present value

Assignment Help Finance Basics
Reference no: EM1359552

12. What is the present value of $1,000 to be received 10 years from now if the required real rate of return is 3% compounded annually and the expected rate of inflation is 5% compounded annually?

13. What is the present value of $1,000 to be received 1 year from now if the required real rate of return is 4% and the expected rate of inflation is 3%?

 

Reference no: EM1359552

Questions Cloud

Explain a few suppliers refused to do business : Explain A few suppliers refused to do business with Tacoma Technologies but senior management was confident that the former purchasing manager's approach minimized the company's costs
Determine the equilibrium nominal interest rate : Assume the equilibrium real rate is 3 percent and the expected rate of inflation in the U.S. is 4 percent. Determine the equilibrium nominal interest rate?
What management contributed to weaknesses : "What management, organisation, and technology factors contributed to these weaknesses? The banks issuing the credit cards? The consumers? Justify your answer. What solutions would you suggest to prevent the problem?"
Legal issues in the field of mental health : Confidentiality is one of the most significant ethical and legal issues in the field of mental health. Clients/patients rely on this confidentiality when they share their personal issues with the therapist.
Calculate the present value : Calculate the present value of $1,000 to be received ten years from now if the required real rate of return is 3 percent compounded yearly and the expected rate of inflation is 5 percent compounded yearly?
Write a plan like digital evidence for investigation : You decide to carry out an investigation. Write a plan for this investigation. The plan should include: digital evidence source identification, recovery, collection, documentation, and report.
Determine real rate of interest : If you invest in CDs earning an interest rate of 9 percent, the interest is taxable in the 28 percent bracket, and inflation is 5 percent, Determine real rate of interest you receive after tax?
Confidentiality in the therapeutic relationship : Explain the importance of maintaining confidentiality in the therapeutic relationship.
Why is it critical to label patch cables-ports and data jack : What do you consider the single most important reason to pay attention to faulty terminations and excessive horizontal wiring spans? Why is it critical to label patch cables, ports, and data jacks?

Reviews

Write a Review

Finance Basics Questions & Answers

  Long term economic outlook

Discuss long-term economic outlook for the US, Western Europe and etc...

  Create a loan amortization schedule

John borrows $150,000. The terms of the loan are 7.5 percent over the next five years. It is important to note that he makes yearly rather than monthly payments.

  Stock price and market capitalization

Suppose Cisco Systems pays no dividends but spent 5 billion dollars on share repurchase last year. What stock price does this correspond to?

  The funds ability to profit

Apex Inc., is a biotechnology company that is about to announce the results of its clinical trials of a potential new cancer drug. If the trials were successful, apnex stock will be worth $70 each share.

  Explain analysis of data through capm model

Explain Analysis of Data through CAPM Model and The period should include exactly 5 years of data

  Computer the margin of safety

Embleton Corporation estimates that variable costs will be 40 percent of sales, and fixed costs will total $900, 000. The selling price of the product is $5.

  Sum of years digits method versus straight line method

Joe's Lawn Service has asked you to develop many financial spreadsheets and a written memo to help him understand his finances for his business.

  Computation of npv using the given financial ratios

Computation of NPV using the given financial ratios and Show the adjustments for each problem individually and not a cumulative adjustment unless the question directs you to do so.

  Calculate the weighted-average cost of capital

A company current balance sheet is as follows: calculate the firm's weighted-average cost of capital at various combinations of debt and equity, given the following data?

  Present value of annuity and amorization

An auto stereo dealer sells stereo system for $600.00 down and monthly payments of $30.00 for the next three years. When the interest rate is 1.25% for each month on the unpaid balance, find out

  Calculate the expected spot rate

The inflation rate in Great Britain is expected to be 4 percent per year, and the inflation rate in Switzerland is expected to be 6 percent every year. If the current spot rate is £1 = 12.50,

  Computation of yield to maturity when interest is paid

Computation of yield to maturity when interest is paid and compounded annually and bond's rate of return earned

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