Solution-Mr art deco will be paid 100000 one year hence

Mr art deco will be paid 100000 one year hence this is a

Reference no: EM13478396

Mr. Art Deco will be paid $100,000 one year hence. This is a nominal flow, which he discounts at an 8% nominal discount rate: PV = 100,000/1.08 = $92,593 The inflation rate is 4%. Calculate the PV of Mr. Deco's payment using the equivalent real cash flow and real discount rate. (You should get exactly the same answer as he did.)

Reference no: EM13478396

Questions Cloud

Now suppose that ttcs period of supernormal growth is to : taussig technologies corporation ttc has been growing at a rate of 20 percent per year in recent years. this same

The dividend should grow rapidly at a rate of 50 per year : simpkins corporation is expanding rapidly and it currently needs to retain all of its earnings hence it does not pay

These bonds make annual payments and mature 13 years from : you bought one of great white shark repellant co.s 9 percent coupon bonds one year ago for 790. these bonds make annual

Choose an advanced database topic to be written as an : choose an advanced database topic to be written as an extended survey and write a report.ppt paper presentation

Mr art deco will be paid 100000 one year hence this is a : mr. art deco will be paid 100000 one year hence. this is a nominal flow which he discounts at an 8 nominal discount

In mid march 2007 the us dollar equivalent of euro was : in mid march 2007 the u.s. dollar equivalent of a euro was 1.3310. in mid july 2009 the u.s. dollare equivalent of a

In the us 90-day investments of similar risk have 4 : suppose 90-day investments in britain have a 6 annualized return and a 1.5 quarterly 90-day return. in the u.s. 90-day

One way of getting required funds would be to forgo the : affleck inc.s business is booming and it needs to raise more capital. the company purchases supplies on terms of 110

Compute value of stock todaycircp0 proceed by finding : wayne-martin electric inc. wme has just developed a solar panel capable of generating 200 percent more electricity

User Account

All Pages

Mr art deco will be paid 100000 one year hence this is a

Reference no: EM13478396

Reference no: EM13478396

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Developing sophisticated cost functions

How many groundhogs are in the wooded area today

Explain the term capital budgeting

How much will she have to invest annually to reach

What is the rate of return on the company reinvesed funds

Valuation of cash flows and purchase price of equipment

What is dollar amount needed during year

What is the npv of the new production line

Morris motors just purchased some macrs 5-year property at

Compute the variance and the standard deviation

How many additional sales dollars must be produced

The company believes that its north american business is

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT