How much more is nancys cash flow worth

Assignment Help Financial Management
Reference no: EM131303538

Mary is going to receive a 32-year annuity of $8,700. Nancy is going to receive a perpetuity of $8,700. If the appropriate interest rate is 10 percent, how much more is Nancy’s cash flow worth? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131303538

Questions Cloud

What is the bond''s after-tax yield : An investor recently purchased a corporate bond which yields 10.5%. The investor is in the 36% combined federal and state tax bracket. What is the bond's after-tax yield? Corporate bonds issued by Johnson Corporation currently yield 11%. Municipal bo..
How much money will you need in bank at the start of trip : Ten years from now, you plan on taking a year's unpaid vacation to sail from Hawaii to Australia. You estimate that expenses, e.g., boat, crew, provisions, etc., will be $5000 per month over the 12-month journey. How much money will you need in the b..
Why health care workers are not receiving the vaccination : Your research design should focus on determining why health care workers are not receiving the vaccination for your selected vaccine-preventable disease in their place of employment.
Determine the maximum distance the boat : The motion of a 6500-lb boat is arrested using a bumper which provides a resistance as shown in the graph. Determine the maximum distance the boat dents the bumper if its approaching speed is . 3 ft/s
How much more is nancys cash flow worth : Mary is going to receive a 32-year annuity of $8,700. Nancy is going to receive a perpetuity of $8,700. If the appropriate interest rate is 10 percent, how much more is Nancy’s cash flow worth?
Determine a healthcare organizations strategic position : Identify the industry your organization is a part of and title your map appropriately.- Identify the appropriate axis labels to use on your map, such as price vs. breadth of product mix.
Discuss how forecasting and financial planning : Discuss how forecasting and financial planning in a large company might differ from that activity in a small company. What important planning factors might a small company have to pay more attention to than a large company?
Important events and announcements in financial markets : Summary of important events and announcements in financial markets as well as a discussion of economic and political events that have influenced financial markets during the month. Section C of the Wall Street Journal is the best source for inform..
Friend normally discounts investments cash flows : Jeremy Fenloch borrowed some money from his friend and promised to repay him the amounts of $1,290, $1,325, $1,500, $1,630, and $1,575 over the next five years. If the friend normally discounts investments cash flows at 8.50 percent annually, how muc..

Reviews

Write a Review

Financial Management Questions & Answers

  Prepare loan amortization schedule

Messineo LLC borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end of year payments. As the CFO of Messineo, LLC you must prepare a report of the pertinent information in a shor..

  Accrual income versus cash flow for a period

Accrual income versus cash flow for a period   Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a pro-viso that they must be paid for within 30 days but can be returned for a full refund cre..

  Warrior industries is planning to invest in new development

Warrior Industries is planning to invest in a new development. The cost of the project will be $24,050,000 and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company's required rate of re..

  The bond is selling at a premium

If the value of a bond B0 is less than its par value, the bond is selling at a premium. The yield to maturity on a bond with a current price equal to its par value will always equal the coupon interest rate. A bond that is issued at a premium has a c..

  What is the six month forward exchange rate

The nominal yield on 6 month T- bills is 7% while default free Japanese bonds that mature in 6 months have a nominal rate of 5.5%. in the spot exchange market, 1 yen equals $0.009. if interest rate parity holds. what is the 6 month forward exchange r..

  Labor intensive and have highly technical equipment

Financial management of a department is difficult to say the least. Our departments are labor intensive and have highly technical equipment, both of which are very expensive. Please develop two methods for labor and equipment that would provide quali..

  Marginal tax-investor be indifferent between these two bonds

Debt issued by Southeastern Corporation currently yields 12%. A municipal bond of equal risk currently yields 8%. At what marginal tax rate would an investor be indifferent between these two bonds?

  What principal remains to be paid after the third payment

A $10,000 loan is to be repaid at the rate of $200 per month, with an annual effective interest rate of 19.56% charged against the unpaid balance. What principal remains to be paid after the third payment?

  Prepayment on a pool of mortgages increases

If a CMO has 3 tranches, A, B, and Z (an accrual tranche), as well as a residual class, answer the following question? If the prepayment on a pool of mortgages increases from PSA 100 to PSA 150, what would happen to the expected maturity of the Z cla..

  Increase a firms net cash flow and new long-term bonds

Which of the following would increase a firm's net cash flow? A firm issues $100 million of new long-term bonds. These bonds have a coupon interest rate of 5%. Which of the following statements must be true if the firm uses all of the money raised to..

  Suppose that the exchange rate

Suppose that the exchange rate is 1 dollar for 120 Yen. The dollar interest rate is 5%(continuously compounded) and the yen rate is 1%(continuously compounded). Consider an at the money American dollar call that is yen-denominated. What is the price ..

  Opportunity or freedom to make mistakes crucial to learning

Why is the opportunity or freedom to make mistakes crucial to learning? 2. How can the opportunity or freedom to make mistakes contribute to performance improvement? 3. What advice do you think James Dyson would give to a recent college graduate who ..

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