Invest today to receive

Assignment Help Financial Management
Reference no: EM13849352

How much would you have to invest today to receive?

a. $15,000 in 8 years at 10%

b. $20,000 in 12 years at 13%

c. $6,000 each year for 10 years at 9%

d. $50,000 each year for 50 years at 7%

Reference no: EM13849352

Questions Cloud

How much needs to be deposited to set up the annuity : A grandfather sets up a trust for his only grandchild. The trust consists of an annuity that will pay $5,000 monthly to the grandchild for 18 years. The annuity pays an annual return of 5% and makes the payments monthly at the end of the month. The a..
The payments are made monthly : You take out a 4 year car loan for $18,000. The loan has a 4% annual interest rate. The payments are made monthly. What are the monthly payments?
Treasury bond-default risk premium and liquidity premium : A 5-year Treasury bond has a 4.05% yield. A 10-year Treasury bond yields 6.15%, and a 10-year corporate bond yields 9.35%. The market expects that inflation will average 2.1% over the next 10 years (IP10 = 2.1%). A 5-year corporate bond has the same ..
Real risk-free rate-what is its default risk premium : The real risk-free rate, r*, is 2.1%. Inflation is expected to average 3.2% a year for the next 4 years, after which time inflation is expected to average 4.05% a year. Assume that there is no maturity risk premium. An 8-year corporate bond has a yie..
Invest today to receive : How much would you have to invest today to receive?
What is the present value of the payments : Calculating Annuities Due- Suppose you are going to receive $15,800 per year for five years. The appropriate interest rate is 7.9 percent. What is the present value of the payments if they are in the form of an ordinary annuity? What is the present v..
Chinese corporation-pre-set price in dollars : The Chinese Yuan was reset from 8.28 Yuan? $ to 8.11 Yuan / $ in July 2005. If Cnooc (Chinese Corporation) had agreed to acquire Uncoal (US corporation) before July for a pre-set price in dollars,
What is the effective annual rate on this loan : Calculating Loan Payments- You want to buy a new sports coupe for $79,500 and the finance office at the dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the car. What will your monthly payments be? What is the effective annu..
Calculating future values : Calculating Future Values- What is the future value of $2400 in 17 years assuming an interest rate of 7.9 percent compounded semiannually?

Reviews

Write a Review

Financial Management Questions & Answers

  Downsizing and the expansion the firm oversees

The focus on core competencies seems to mandate both a downsizing and the expansion the firm oversees. Is this a contradiction? (Hint: Discuss the concept of core competencies and then show how spreading a business across boarders expands the gains f..

  What is the firms required rate of return

Cooley Company's stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's required rate of return?

  A firm wishes to maintain an internal growth rate

A firm wishes to maintain an internal growth rate of 9 percent and a dividend payout ratio of 25 percent. The current profit margin is 9 percent, and the firm uses no external financing sources. What must total asset turnover be? Round your answer to..

  What is difference between the expected return on equity

Southwest physicians a medical group practice in Oklahoma City are just being formed. it will need $2 million of total assets to generate $3 million in revenues. Furthermore the group expects to have a total margin of 5 percent. The group is consider..

  Inflation rate is expected after year-expected inflation

Due to a recession, expected inflation this year is only 3.25%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3.25%. Assume that expectations theory holds and the real risk-free rate is r* = 2.75%..

  Analyzing a special investment project

Maersk Metal Stamping is analyzing a special investment project. The project will require the purchase of two machines for $30,000 and $8,000 (both machines are required). The total residual value at the end of the project is $1,500. The project will..

  What is the companys required return

A company has a beta of 0.50. If the market return is expected to be 12 percent and the risk-free rate is 5 percent, what is the company's required return?

  What does an asset having a negative beta value imply

What does an asset having a negative beta value imply?

  What will portfolios new beta be after these transactions

You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 0.85. You are considering selling $100,000 worth of one stock with a beta of 1.05 and using the proceeds to purchase anoth..

  Within the discussion board area write 400ndash600 words

within the discussion board area write 400ndash600 words that respond to the following questions with your thoughts

  Comparable investments and settle the transaction

The Snatch Company has outstanding bonds with a coupon rate of 7.75% and semi-annual payments. The bonds are redeemable on June 30, 2035. If Bobby can earn 5.5% on comparable investments and settle the transaction on August 9, 2015, how much should h..

  Conversion cycle-by how much would pre-tax profits change

Primrose Corp has $19 million of sales, $3 million of inventories, $2 million of receivables, and $3 million of payables. Its cost of goods sold is 70% of sales, and it finances working capital with bank loans at an 7% rate. By how much would pre-tax..

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