If 7 percent is the discounted rate what is the present

Assignment Help Finance Basics
Reference no: EM13478627

The State lottery's million dollar payout provides for 1.4 million to be paid in 25 installments of $56,000 per payment. The forst $56,000 payment is made immediately, and the 24 remaining $56,000 payments occur at the end of each of the next 24 years. If 7 percent is the discounted rate, what is the present value of this annuity due is? If 14 percent is the discount rate, what is the present value of the cash flows?

Reference no: EM13478627

Questions Cloud

The spot price of the sampp 500 index is the risk-free rate : the spot price of the sampp 500 index is .the risk-free rate is and the dividend yield on the index is . the time to
Oe year later the stock is selling for 54 per share and : suppose the call money rate is 6.8 percent and you pay a spread of 1.9 percent over that. you buy 900 shares at 46 per
Choose a puplicly listed company of your choosing identify : select a puplicly listed company of your choosing. identify key inflection points in the companys stock price going
Stewart incs latest eps was 350 its book value per share : stewart inc.s latest eps was 3.50 its book value per share was 22.75 it had 215000 shares outstanding and its debt
If 7 percent is the discounted rate what is the present : the state lotterys million dollar payout provides for 1.4 million to be paid in 25 installments of 56000 per payment.
Additional profits after tax will amount to 18000 per year : you are a small business owner and you have the opportunity to expand your facility which will increase your
Assuming that one apple was rotten and he sells each of : a shopkeeper buys 10 apples at a certain price . but he steals three more from the dealer . assuming that one apple
To help others in the class gain a better understanding of : purpose1.to develop your understanding of communication in culture2.to help others in the class gain a better
Then 10000 each year for the following 10 years the irr of : the project has a annual cash flow of 7500 for the next 10 years and then 10000 each year for the following 10 years.

Reviews

Write a Review

Finance Basics Questions & Answers

  Question on value of share

The Rufus Corporarion has 125 million shares outstanding and analyst expect Rufus to have earnings of $500 million this year. What is the value of a share of Rufus stock?

  How should malik properties proceed and why

Each unit is projected to generate net cash flows of $5,166.15 per year for seven years. How should Malik Properties proceed and why?

  A number of european countries have adopted a flat tax

a number of european countries have adopted a flat tax. these countries as of 2007 include estonia with a rate of 24

  Which of the 4 change projects should the consulting group

this week when you meet with your consulting partners you want to evaluate the following issueshow much longer should

  What role would the arbitrageur play in the market

Thus, does parity have to exist, at least to the point considering the cost of transactions? Briefly explain.

  Find the npv and pi of a project

Find the NPV and PI of a project that costs $1,500 and returns $800 in year one and $850 in year two. Assume the project's cost of capital is 8 percent.

  Renfro rentals has issued bonds that have a 8 coupon rate

wilson wonderss bonds have 7 years remaining to maturity. interest is paid annually the bonds have a 1000 par value and

  Calculate boehms total dividends for 2014

It uses a pure residual policy with all distributions in the form of dividends (35% of the $12.8 million investment is financed with debt). Round your answer to the nearest dollar.

  Find the expected rate of return on the market portfolio

Find the Expected Rate of Return on the Market Portfolio given that the Expected Rate of Return on Asset "i" is 12%, the Risk-Free Rate is 4%, and the Beta (b) for Asset "i" is 1.2.

  What is the projects free cash flow in year 1

This new project will generate additional sales revenue of $112,000 while additional operating costs, excluding depreciation, will be $68,000. Vandelay' s marginal tax rate is 35%. What is the projects free cash flow in year 1?

  Would the bond be priced at a premium or discount

Kessen Inc.'s bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. Should an investor decide to purchase this bond today, would the bond be priced at a premi..

  Explain the no arbitrage and risk neutral valuation

Explain the no arbitrage and risk neutral valuation approaches to valuing a european option using a one-step binomial tree

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