What is the present value of four annual payments

Assignment Help Financial Management

Reference no: EM131336925

What is the present value of 4 annual payments of $300 each with the first payment being received immediately? Assume you can invest money at a 10% stated rate with semiannual compounding.

If you can explain how to do this on a BAII Plus calc that would be awesome.

Reference no: EM131336925

Questions Cloud

Asset pricing models can be used to estimate cost of equity : Courts recognize that they must discount awards of lost future profits in contract disputes to avoid overcompensating the plaintiff. The required return to equity capital is not directly observable. Different asset pricing models can be used to estim..

Articulate the costs and benefits in actual dollar amounts : What challenges did you face when trying to articulate the costs and benefits in actual dollar amounts? As a nurse leader, what can you do to ensure you are making fiscally responsible decisions?

What weight would you assign to the risk-free asset : You invest $100 in a risky asset with an expected rate of return of 15% and a standard deviation of 15% and a T-bill with a rate of return of 5% and E (U)= E(r) - 0.5Aσ2. Suppose your risk aversion factor is 5. What weight would you assign to the ris..

Venture funds-angel investors-private equity and hedge funds : At one time new businesses that needed money borrowed it from the local banker, or from rich investors and other people who had already made money. Then the roll of providing capital to new ventures moved away from traditional banks to venture funds,..

What is the present value of four annual payments : What is the present value of 4 annual payments of $300 each with the first payment being received immediately? Assume you can invest money at a 10% stated rate with semiannual compounding.

Interest rate you are paying on funds you actually receive : Your business does about $1.5 million in business, with sales equally spread throughout the year. Your average invoice size is about $26,000. You give all of your customers credit terms of Net 30 days, but most of your customers pay on 45 days. Assum..

What is the fv of this growing annuity : Your annuity grows at 3% per quarter. The first cash payment is $600. What is the FV of this growing annuity if the payments are made for 36 months and the interest rate is 6%?

About the mature manufacturing firm : Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $10.40, but management expects to reduce the payout by 4 percent per year indefinitely. If you require a return of 12 percent on this stock, what will you pay for a sha..

Best method in your opinion for a bank to gather data : What is the best method in your opinion for a bank to gather data for its research? Are we numb to phone surveys? Are Internet surveys reliable. What would some appropriate questions be for them to ask? If you were the bank's marketing manager, what ..

User Account

All Pages