Starting one year after you buy the investment

Assignment Help Financial Management

Reference no: EM131056206

An investment that will pay you $2,000 each year for the next 25 years, starting one year after you buy the investment. An investment that will pay $2,000 to you now, and to your heirs (children, grandchildren, any one else) forever Assuming that you can get these investments for a return of 7%, as promised, How Much are you paying today for payments 26 to infinity?

Reference no: EM131056206

Questions Cloud

Define open architecture : Define open architecture. Do you think it will increase or decrease in importance to the intermediary and direct distribution channels?

Planning to invest in a project for production of widgets : You are planning to invest in a project for the production of widgets. The cost of the project is $10M and the project generates a single cash flow one year after the investment. Demand for widgets can be either high or low with equal probability.

Cost of equipment-shipping and installation : New oven would cost $685,000, including cost of equipment, shipping and installation. No increase in capcity with new oven, however operating expenses would be reduced by $105,000. What is the NPV of the 2 projects and which should be accepted? The f..

Describe the functions of the organization : I want you to choose topic "Global Warming" for this assignment and also write it as a report to the organisation that you will chose. Describe the functions of the organization. Data justifying the need for the initiative

Starting one year after you buy the investment : An investment that will pay you $2,000 each year for the next 25 years, starting one year after you buy the investment. An investment that will pay $2,000 to you now, and to your heirs (children, grandchildren, any one else) forever Assuming that you..

Insurance-about the new policy : Insurance An Insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child’s birth. When the child reaches age 65, he or she receives $350,000. If the relevant interes..

Stock price does not change over the life of the option : You have purchased a put option on Pfizer common stock. The option has an exercise price of $56 and Pfizer’s stock currently trades at $58. The option premium is $0.50 per contract. What is your net profit on the option if Pfizer’s stock price does n..

What is the portfolio beta and required return : An investor has put money in four stocks in the dollar amounts indicated and with betas specified. What is the portfolio beta? Stock A $3,780 with a beta of 1.03; stock B $7,411 with a beta of 1; stock C $5,584 with a beta of 1.03; and stock D $5,895..

What is the ytm-stated on nominal-annual-basis : The current market price of Smith Corporation's 8 percent coupon, 8 year bonds is $1,125.61. An 8% coupon rate is paid semi-annually, and the par value is equal to $1,000. What is the YTM (stated on a nominal, annual, basis) if the bonds mature 8 yea..

User Account

All Pages