Financial calculator methods-what is the present value

Assignment Help Financial Management
Reference no: EM131022457

What is the present value of $180,000 to be received after 30 years with a 17 percent discount rate? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods

Reference no: EM131022457

Questions Cloud

Concepts and fundamentals of risk-return and risk preference : Discuss the basic meanings and concepts and fundamentals of risk, return, and risk preference.
An amount p must be invested now to allow withdrawals : An amount, P, must be invested now to allow withdrawals of $1,000 per year for the next 15 years and to permit $320 to be withdrawn starting at the end of year 5 and continuing over the remainder of the 15-year period as the $320 increases by 4% per ..
Cash flow statements for retailing giant bigbox spanning : The cash flow statements for retailing giant BigBox spanning the period 2010-2013 are found here. Did BigBox generate positive cash flow from its operations? How much did BigBox invest in new capital expenditures over the period?
Considering your retirement : You are considering your retirement, and would like to have accumulated $2,295,734 by the time you retire in 34 years. If you anticipate that your average compounded rate of return over the 34 years until retirment will be 13%, how much will you need..
Financial calculator methods-what is the present value : What is the present value of $180,000 to be received after 30 years with a 17 percent discount rate? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods
What was the growth rate in earnings per share : 10 years ago, Weed Go Inc. earned $0.93 per share. Its earnings this year were $3.64. What was the growth rate in earnings per share (EPS) over the 10-year period? State your answer as a percentage to two decimal places (e.g. 16.38%). The % sign is n..
Distinguish between operating leases and financial leases : Distinguish between operating leases and financial leases. Would you be more likely to find an operating lease employed for a fleet of trucks or for a manufacturing plant? Explain
Expected to generate cash flows : You have the opportunity to purchase an asset that is expected to generate cash flows for the next 27 years. The purchase price of the asset is $9,526,195. What annual annuity cash flow would you have to expect to receive over the life of the asset i..
Often by issuing speculative or junk : Continuing with the RJR situation - an LBO means that the take-over company borrows an enormous amount of money (often by issuing speculative, or "junk" bonds) and uses those borrowed funds to buy-back the common stock. After the take-over, which of ..

Reviews

Write a Review

Financial Management Questions & Answers

  Way of increasing leverage and thus the risk of default

Nearly one in 10 mortgage borrowers in 2005 and 2006 took out “option ARM” loans, which meant they could choose to make payments so low that their mortgage balances rose every month. Choosing to defer interest payments was a way of increasing leverag..

  What is real rate of return on bond-interest annually yields

Wine and Roses, Inc. offers a 6.0 percent coupon bond with semi annual payments and a yield to maturity of 6.91 percent. The bonds mature in 12 years. What is the market price of a $1,000 face value bond? A bond that pays interest annually yields a r..

  What is the conversion price

A bond has a face value of $10,000 and a conversion ratio of 560. The stock is currently trading at $16.30. What is the conversion price?

  Most recent financial statements

In its most recent financial statements, Newhouse Inc. reported $45 million of net income and $540 million of retained earnings. The previous retained earnings were $513 million. How much in dividends were paid to shareholders during the year?

  Rawlsian social welfare functions

Which is not true of Rawlsian social welfare functions? A. They have right-angled social indifference curves. B. They are derived from a concept of justice. C. They treat everyone equally. D. They focus attention on the least advantaged individual.

  What is the expected rate of return of this asset

An asset has a 15% chance of a -10% return, a 25% chance of a 0% return, a 25% chance of a 5% returns, and a 35% chance of a 20% return. What is the expected rate of return of this asset?

  Supplier offers to supply component at an annual payment

Betty's Home Décor is considering whether to produce a component in-house or whether to purchase it from a supplier. A supplier offers to supply the component at an annual payment of $120,000 over three years (payable at the beginning of years 2, 3, ..

  Returns given the various states of the economy

The stock of Uptown Men's Wear is expected to produce the following returns given the various states of the economy. What is the expected return on this stock? Probabilities: Recession:0.4 Normal:0.4 Boom:0.2 Returns: Recession:-11% Normal:12% Boom:2..

  Calculate the pay back period of each project

Calculate the Pay Back Period (PBP) of each project, assess its acceptability, and indicate which project is best using NPV. Calculate the Internal Rate of Return (IRR) of each project, assess its acceptability.

  Three main areas to enter data when creating a customer

There are three main areas to enter data when creating a customer: general data, company code data, and sales area data. As you enter the customer data state here which area of data (General Data, Company Code, and Sales Area Data) should be entered ..

  Risk associated with an individual security

According to the Capital Asset Pricing Model (CAPM), what determines the amount of reward an investor receives for bearing the risk associated with an individual security?

  What tax rate would investor be indifferent between bonds

Corporate bonds issued by Johnson Corporation currently yield 8.5%. Municipal bonds of equal risk currently yield 6.5%. At what tax rate would an investor be indifferent between these two bonds?

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