Calculate the present value of each of the alternatives

Assignment Help Finance Basics

Reference no: EM131951586

Question: Calculate the present value of each of the alternatives below, if the discount rate is 12%.

a. $45,000 today in one lump sum.

b. $70,000 paid to you in seven equal payments of $10,000 each at the end of each of the next seven years.

c. $80,000 paid in one lump sum 7 years from now.

Reference no: EM131951586

Questions Cloud

What are the seven factors that facilitate emergent change : What are the seven factors that facilitate emergent change. Assess your own organization as to which single factor best describes the approach to change.

Construct your models as demonstrated in the notes : . Set up spreadsheet models to calculate total profit for each option. Construct your models as demonstrated in the notes and podcasts.

Calculate the price of a call option on a stock : You are to calculate the price of a call option (European) on a stock that does not pay dividends when its price is $52, the exercise price is $50.

The leaders of the european division of the organization : Many e-commerce companies have entered the market and several enjoy relatively high profit margins, which has lead to immediate financial stability.

Calculate the present value of each of the alternatives : Calculate the present value of each of the alternatives below, if the discount rate is 12%. $45,000 today in one lump sum.

Theory of charisma described as a double-edge sword : Why is the theory of charisma described as a double-edge sword? Please identify a leader that used charisma in a negative manner?

What would the implications for the market policy : In settings where the expansion of the market is so small that a given product or brand cannot reasonably be expected to be provided.

What is the value of the service in today dollars : You are the manager of a grocery store and you are considering an opportunity to offer delivery services to your customers.

Drawbacks of the scientific management approach : Explain the drawbacks of the scientific management approach. Explain the drawbacks of the scientific management approach.

User Account

All Pages