Use the appropriate time value of money table

Assignment Help Financial Management

Reference no: EM13908824

A financial company that advertises on television will pay you $65,000 now for annual payments of $10,300 that you are expected to receive for a legal settlement over the next 8 years. Assume you estimate the time value of money at 9 percent.

Use the appropriate time value of money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D].

(a) What is the present value?

(b) Would you accept this offer? (yes or no)

Reference no: EM13908824

Questions Cloud

Calculate the heat transfer per unit length of tube : calculate the heat transfer per unit length of tube if a constant heat flux condition is maintained at the wall temperature is 20 degrees celsius above the air bulk temperature all along the tube length.

Calculate heat loss from each fin per unit depth of material : A straight, rectangular cross-sectional fin [k=200w/mdegrees celcius] 3.0 mm thick and 7.5 cm long protrudes from a flat surface.The base of the fin is maintained at 300 celcius and the ambient temperature is 50 celcius.

Coupon rate-what is the price of the bond : A bond has a coupon rate of 11 percent and 5 years until maturity. If the yield to maturity is 10.1 percent, what is the price of the bond?

Who are you as a walden student : The first and longest section of your essay should describe who you are today as a result of this first-term course and starting your educational journey. Specifically consider your personal plan for success at Walden. Answer these questions to de..

Use the appropriate time value of money table : A financial company that advertises on television will pay you $65,000 now for annual payments of $10,300 that you are expected to receive for a legal settlement over the next 8 years. Assume you estimate the time value of money at 9 percent. Use the..

Pak company manufactures and sells mountain bikes : PAK Company manufactures and sells mountain bikes. It normally operates eight hours a day, five days a week.

About the retirement account : Carla Lopez deposits $7980 a year into her retirement account. If these funds have an average earning of 3 percent over the 19 years until her retirement, what will be the value of her retirement account?

Show that no unbiased estimate of x exists observation of y : Let Y = X2 + Z, where Z is a zero-mean unit variance Gaussian rv. Show that no unbiased estimate of X exists from observation of Y. Hint. Consider any x > 0 and compare with -x.

Deposit at the start of his studies to be able to withdraw : Pete Morton is planning to go to graduate school in a program of study that will take 2 years. Pete wants to have $19000available each year for various school and living expenses. If he earns 7 percent on his money, how much must be deposit at the st..

User Account

All Pages