Present value of an annuity to increase

Assignment Help Financial Management
Reference no: EM13877940

Which of the following would cause the present value of an annuity to increase?

Reducing the number of payments.

Increasing the interest rate.

Decreasing the interest rate.

Decreasing the liquidity of the payments.

Reference no: EM13877940

Questions Cloud

Long-term debt-total equity and total liabilities and equity : Set up an income statement that includes revenue, COGS, GM, EBIT, EBT and EAT. Set up a balance sheet that includes current assets, fixed assets, total assets, current liabilities, long-term debt, equity (paid in capital) and retained earnings, total..
The gross amount of an invoice with freight charge : The gross amount of an invoice with freight charge included is $500. The freight charge is $100. The invoice is dated November 29 with terms of 1/10 EOM. Payment is made on January 4. Find: (a) the cash discount, and (b) the net amount paid.
Purpose of classifying cash flows into the categories : The cash flow data of Calendar Company for the year ended December 31, 2004 are as follows: Cash payment of dividends $ 80,000, Purchase of land $ 18,000, Cash payments for interest $ 20,000, Prepare a statement of cash flows for Calendar Company usi..
What is the current price of a bond : What is the current price of a bond if it is priced to yield 2 percent, has a $1,000 face value, has 10 years to maturity, pays semiannual coupon payments, and has a coupon rate of 7 percent?
Present value of an annuity to increase : Which of the following would cause the present value of an annuity to increase?
Magazine sweepstakes and opted to take unending payments : You just won the magazine sweepstakes and opted to take unending payments. The first payment will be $35,000 and will be paid one year from today. Every year thereafter, the payments will increase by 2% annually. What is the present value of your pri..
According to the rule : According to the Rule of 72, how long would it take for $1000 to become $8000?
Owner ship and control are not separated : Sole proprietorships have all of the following advantages except easy to set up. single taxation of income. Limited liability. Owner ship and control are not separated.
What is the market value of kurzs existing assets : Kurz Manufacturing is currently a levered firm with 50M shares outstanding priced at $10.00 per share and 250K bonds outstanding at $1000 per bond (this is also the face value of each bond). What is the market value of Kurz's existing assets? What is..

Reviews

Write a Review

Financial Management Questions & Answers

  Rent the current machine and rent the advanced machine

Beryl’s Iced Tea currently rents a bottling machine for $55,000 per year, including all maintenance expenses. It is considering purchasing a machine instead, and is comparing two options: Purchase the machine it is currently renting for $150,000. Thi..

  Hsieh-hseih inc must choose between two copiers the zz20

1. hsieh-hseih inc. must choose between two copiers the zz20 or the gg50.the zz20 costs 300 and will last for three

  Exchange rate under the theory of interest parity condition

Explain how an increase in the interest rate in Europe would affect the interest rate in the United States and the dollar-euro exchange rate under the theory of Interest Parity Condition. What factors does this theory leave out?

  Nominal yield to maturity on this investment

Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The bond has face value of $1,000 and makes semi-annual interest payments. If you require an 11.0% nominal yield to maturity on this investment, what i..

  The sludge dewatering processes

Yellow jacket, Inc., a large textile company, is trying to decide how long it should retain one of its machines used in the sludge dewatering processes. The machine currently is estimated to have a $35,000 market value and a future market value of $1..

  Describe how the internal rate of return

Describe how the Internal Rate of Return is calculated and describe the information this measure provides about a sequence of cash flows. What is the IRR criterion decision rule? What is the relationship between IRR and NPV and are there any situatio..

  Differentiate between an employee and independent contractor

Agency law plays a big part in corporate responsibility (and liability). Differentiate between an employee and an independent contractor. What is the difference and what are the key factors that must be considered in determining one’s status as an em..

  Capitates environment versus a fee-for-service environment

What are the critical differences in profit analysis when conducted in a capitates environment versus a fee-for-service environment?

  Relation to the acceptance and completion of capital project

Agency conflicts arise when there are differences in the goals of the firm versus the personal goals of managers. What qualitative considerations are important for the mitigation of agency conflicts in relation to the acceptance and completion of cap..

  Volatile business cycles

Suppose a firm finds itself as the target of a possible hostile takeover. An outside investor has acquired a major stake of shares and is threatening to exert influence on the broad. If you were to look at a firm's distribution of cash to investors o..

  Used to pay off accounts payable

If a $100 million in cash was used to pay off Accounts Payable, which of the following Balance Sheet items would be affected?

  What are drawbacks-benefits associated with business unit

A major MNE has incredible knowledge resources but they are often underutilized. The reason: often the knowledge that is needed within one part of the organization exists within that organization but normally there is no system by which those who nee..

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