Present value of perpetuity-what is its present value

Assignment Help Financial Management
Reference no: EM131612348

Present value of a perpetuity

What is the present value of a $600 perpetuity if the interest rate is 5%? Round your answer to the nearest cent.

$  

If interest rates doubled to 10%, what would its present value be? Round your answer to the nearest cent.

$  

An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6.

A) If other investments of equal risk earn 10% annually, what is its present value? Round your answer to the nearest cent.

B) If other investments of equal risk earn 10% annually, what is its future value? Round your answer to the nearest cent.

Reference no: EM131612348

Questions Cloud

Prepare a flexible budget : Towers Corporation is getting ready for their annual budgeting process. Prepare a flexible budget
What are the three basic types of property : What are the three basic types of property? Which of the following criteria must be satisfied in order for a patent, other than a design patent, to be granted?
In what type of market are batteries sold : Sparks Fly for Energizer Energizer is gaining market share against competitor Duracell and its profit is rising despite the sharp rise in the price of zinc.
Long-term appreciation of the house : 1. How does the state location of a house affect the long-term appreciation of the house?
Present value of perpetuity-what is its present value : What is the present value of a $600 perpetuity if the interest rate is 5%? what is its present value?
Perfectly completed gasoline market : Oil City In the 1990s, Reliance spent $6 billion to build a world-class oil refinery at Jamnagar, India. Now Reliance's expansion will make.
Data transactions and enhance concurrency control : Describe how locks could be used in order to qualify data transactions and enhance concurrency control.
What is the new market value of the company : Hickock, Inc., is proposing a rights offering. What is the new market value of the company? How many rights are associated with one of the new shares?
What does cio stand for : What does CIO stand for, and how does the CIO's job function fit into a firm's strategy?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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