Calculation of present value and payment of the amount1

Assignment Help Corporate Finance
Reference no: EM13356949

Calculation of present value and payment of the amount.

1. Find the value of an annuity in which $1,100 is deposited at the end of each year for 5 years, at an interest rate of 11.5% compounded annually.

2. Determine the amount of each payment to be made to a sinking fund in order to pay off a $12,000 loan in 8 1/2 years when the funds earn interest at a rate of 10% compounded semi annually.

3. Find the present value of an ordinary annuity with annual payments of $1,000, for 6 years, at 10% interest compounded annually.

Reference no: EM13356949

Questions Cloud

Multiple choice questions on time value of money1nbspthe : multiple choice questions on time value of money.1.nbspthe primary operating goal of a publicly-owned firm interested
Calculation of interest rate and rate of returna friend has : calculation of interest rate and rate of return.a friend has 4800 that has been saved from her part-time job plus any
Computing the value of stock price with discounting the : computing the value of stock price with discounting the future discounts.a. a record collector has agreed to sell her
Evaluation of alternative projects - time value of : evaluation of alternative projects - time value of money.congratulations you have just won the lottery however the
Calculation of present value and payment of the amount1 : calculation of present value and payment of the amount.1. find the value of an annuity in which 1100 is deposited at
Multiple choice questions based on time value of : multiple choice questions based on time value of money.choose the correct answer from the given option. 1.nbspthe
Computation of present value of bond to check whether it is : computation of present value of bond to check whether it is overpriced.ron rhodes calles his broker to inquire about
Time value of money involves calculation yield to maturity : time value of money involves calculation yield to maturity and yield to calleddies bar and restaurant supplies expects
Total annual savings needed to be calculated considering : total annual savings needed to be calculated considering time value of money.how much would kevin and stacy have to

Reviews

Write a Review

Corporate Finance Questions & Answers

  1for each of the subsequent pairs of investments a through

1.for each of the subsequent pairs of investments a through e identify which has the lowest risk by placing an x to the

  Use the black-scholes option pricing formula to check

use the black-scholes option pricing formula to check whether a call option is priced correctly.pick any corporation of

  Compute the value of stock using dividend discount

compute the value of stock using dividend discount model.general cereal common stock dividends have been growing at an

  Find risk premium on the market

Risk Free rate 4 percent and the expected return on the market portfolio is 12%. Using the capital asset model:

  Find the value of investment

An investment of $5,000 is made at interest rate of 5% compounded semi-annually.

  What is nealons cost of equity capital

Calculate the firms weighted average cost of capital and what is Nealons cost of equity capital when new shares are sold, and what is the weighted average cost of the added funds involved in the issuance of new shares?

  Economic variables to identify long term financial goals

Suppose that Nike Corporation is expanding globally. One way to increase globally is to purchase shares of other firms, while other way is to open up new branches.

  Calculation of the required ratios

Use formulas to compute ratios and format cells to insert comma if there is more than three (3) numbers. Give your answer to the nearest whole dollar.

  How do you determine the level of the barrier

How do you determine the value of the firm and determine the volatility of the describing the change in firm value - How do you determine the level of the barrier?

  What is the intrinsic value of the call option

What is the intrinsic value of the call option and what is the intrinsic value of the put option - Calculate the price of a call option expiring in two periods with an exercise price of $45.

  Compute payback period, return on average investment and npv

Micro Tech is considering 2 option proposals for modernizing its production facilities. To provide a basis for selection cost accounting dept has developed the following information;

  How does a learning curve differ from an experience curve

Explain to Arty what is meant by a learning curve and explain the learning curves role in cost estimation.

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