What is the present value of commitment

Assignment Help Financial Management
Reference no: EM131966973

When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $5. Based on actuarial tables, “Joltin’ Joe” could expect to live for 20 years after the actress died. Assume that the EAR is 9.9 percent. Also, assume that the price of the flowers will increase at 3.5 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks, and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment?

Reference no: EM131966973

Questions Cloud

Contingency table with the dimensions : Say you have a contingency table with the following dimensions: number of rows 10 and number of columns 5. What would be the correct degree of freedom
Create a poster about art therapy case study : Create a poster about " Art therapy case study: EFFECT OF ART THERAPY ON AUTISTIC STUDENT".
What is monthly mortgage payment : The annual interest rate was 6.5%. What is your monthly mortgage payment?
Calculate both the labor rate and labor efficiency variances : Calculate both the labor rate and the labor efficiency variances. Indicate whether they are Favorable or Unfavorable
What is the present value of commitment : Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment?
How do you think albinism affects vision : Four-year-old Dave Zimmer is brought to the ophthalmologist for a routine checkup on his vision. Dave is an albino. How do you think albinism affects vision?
Briefly explain each methodology used in past and present : Briefly explain each methodology used in the past and present. Include tables and graphs to support your justification and argument.
What is the probability that both children are girls : A couple has two children. What is the probability that both children are girls, given that one is a girl born on Tuesday?
What is the unit cost per item sold : Operating expenses for February were $10,500 and non-operating expenses were $6,000. What is the unit cost per item sold

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