What is the present value of a series of payments

Assignment Help Financial Management
Reference no: EM131886549

1. What is the present value of a series of payments received each year for 8 years, starting with $500 paid one year from now and the payment growing in each subsequent year by 2%? Assume a discount rate of 5%. Please round your answer to the nearest cent.

2. Alex bought a 10-year annuity-immediate with annual payments of 10,000 under an annual rate of 8%. Six years into the future, right after receiving the 6th payment from the annuity, the market interest rate fell down to 4%, so she then decided to immediately sell all of her future earnings at the new market interest rate. Find her annual yield rate.

Reference no: EM131886549

Questions Cloud

Company wishes to determine the value of craft foundry : Hamlin Steel Company wishes to determine the value of Craft Foundry, a firm that it is considering acquiring for cash.
Compute the portfolio betas for the cases : Compute the portfolio betas for the following cases. What is the portfolio beta?
Free cash flow valuation model to common stock value : Use the free cash flow valuation model to estimate? CoolTech's common stock value per share.
Based in the shoes industry-finance and cash flows : Determine the financial health of your organization concerning outstanding shares and debt. How might company finance expansion and maintain financial health.?
What is the present value of a series of payments : What is the present value of a series of payments received each year for 8 years,
What is beta of your portfolio : You own $12,992 of Olympic Steel stock that has a beta of 2.99. What is the beta of your portfolio?
What is the future value of the cash flow stream : What is the future value of the following cash flow stream at a rate of 12.0%?
The cost of capital for such risky projects : management uses the subjective approach and applies an adjustment factor of +2 percent to the cost of capital for such risky projects.
What is the most likely way to deter fraud : What is the most likely way to deter fraud? Collusion involves which of the following?

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