Develop a general formula for the present value

Assignment Help Finance Basics
Reference no: EM13276346

Develop a general formula for the present value of a decreasing annuity immediate. The first payment, X, is received at time 1. Each subsequent payment decreases by a fixed amount D. There are a total of n payments. The final payment, F, equals X-D(n-1). Write the formula here and show your work.

Reference no: EM13276346

Questions Cloud

Explain how much energy in calories would be required : If a wheelchair-marathon racer moving at 13.3 miles per hour expends energy at a rate of 635 Calories per hour, how much energy in Calories would be required to complete a marathon race (26.2 miles) at this pace
Explain how much energy in calories would be required : If a wheelchair-marathon racer moving at 13.3 miles per hour expends energy at a rate of 635 Calories per hour, how much energy in Calories would be required to complete a marathon race (26.2 miles) at this pace
What is the mass corresponding to this force : When the sum of all forces acting on a system is zero, the system is said to exist in a state of equillibrium. What is the mass corresponding to this force
Produce electricity for a house : How many kilograms of hydrogen would be required to generate the electricity needed for a typical house? Assume the home uses about 850 kWh of electricity per month,
Develop a general formula for the present value : Develop a general formula for the present value of a decreasing annuity immediate.
State sports-ultility vehicle has an average mileage rating : A sports-ultility vehicle has an average mileage rating of 18 miles per gallon. How many galllons of gasoline are needed for a 397-mile trip
What is the discounted payback period : An investment project has annual cash inflows of $5,000, $5,500, $6,000, & $7,000. and a discount rate of 14 %. What is the discounted payback period for these cash flows if the initial cost is $8,000? What if the initial cost is $12,000? What if ..
Create a change in the irr ranking of these two projects : Why is that? He asked me if changes in the cost of capital would ever create a change in the IRR ranking of these two projects. What do you say?
How to calculate the dh for the reaction : The "roasting" of 48.7 g of ZnS at constant pressure gives off 220. kJ of heat. Calculate the DH for this reaction. 2ZnS(s) + 3O2(g) ® 2ZnO(s) + 2SO2(g)c

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of the present value of the contract

Computation of the present value of the contract and what was the present value of this contract in January when Schneider signed it

  Sources of long-term international financing

What are some sources of short-term, medium-term, and long-term international financing? What are the costs associated with each of these sources?

  Computing net present value

Dr. Harold Wolf of Medical Research Company was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that reduces the pain from arthritis.

  Compute descriptive statistics and perform a paired t test

Compute descriptive statistics and perform a paired t test. State your findings and conclusions in a report to the vice president for human resources.

  What is the recommended production lot size

The cost to set up the design for printing is $315. The holding cost is estimated at 2 cents per bag per year.

  Find market value of the outstanding preferred stock

Jones Design wishes to estimate the value of its outstanding preferred stock. The preferred stock issue has an 80 dollar par value and pays an annual dividend of $6.40 each share.

  How should you guard against being manipulated

The heart of discounted cash flows analysis is the assumptions behind the numbers. Once the mechanics of the tool are mastered, then one needs to focus on the assumptions behind the numbers.

  Future value-annuity versus annuity due

Find out the future value of 7 percent, 5-year ordinary annuity which pays $300 each year?

  Compare and contrast traditional and roth iras

Compare and contrast traditional and Roth IRAs. Based on your comparison, which one do you think is a better vehicle for retirement saving? Does your determination depend on age, income level, tax bracket, etc?

  Evaluate the required return for an asset

Evaluate the required return for an asset with a beta of .90 when the risk-free rate and market return are 6% and 10% respectively and fine the risk-free rate for a firm with a required return of 12% and a beta of 1.25

  Who advises the company during a stock ipo

Who advises the company during a stock IPO and helps them? What do those advisers do? Who else might enter into the in the process and what might they do?

  Determination of growth rate

Grateway Corporation has a weighted average cost of capital of 11.5%. Its target capital structure is 55 percent equity and 45% debt. The company has sufficient retained earnings to fund the equity portion of its capital budget.

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