What is the present value of stream of payments

Assignment Help Operation Management
Reference no: EM132699154

1. You purchase a RM1,000 asset for RM800. It pays RM60 a year for seven years at which time you receive the RM1,000 principal. Prove that the annual return on this investment is not 9 percent.

2. You invest RM1,000 a year for 10 years at 10 percent and then invest RM2,000 a year for an additional 10 years at 10 percent. How much will you have accumulated at the end of the 20 years.

3. You are promised R10,000 a year for six years after which you will receive RM5,000 a year for six years. If you can earn 8 percent annually, what is the present value of this stream of payments?

4. Suppose you purchase a home for RM350,000. After making a down payment of RM50,000, you borrow the balance through a mortgage loan at 8 percent for 20 years. What is the annual payment required by the mortgage? If you could get a loan for 25 years but had to pay 9 percent annually, what is the difference in the annual payment?

5. You are offered RM900 five years from now of RM150 at the end of each year for the next five years. If you can earn 6 percent on your funds, which offer will you accept? If you can earn 14 percent on your funds, which offer will you accept? Why are your answers different?

Reference no: EM132699154

Questions Cloud

Job design-job redesign and workflow analysis : Analyze at least two reasons why job analysis is often described as "the foundation of human resources management."
What is the wacc of samsung : Samsung hired you as a consultant to help estimate its cost of capital (WACC). You have been provided with the following data:
Calculate total saving for the month of january and feb : The variable expenditure is expected to decrease by 5% for the month of Feb 2015. Calculate total saving for the month of January and Feb 2015
Explain the various evidence-based approaches : Given the various evidence-based approaches that can be used in addressing the observed problem, situation, or issue, think about a plan for approaching.
What is the present value of stream of payments : You purchase a RM1,000 asset for RM800. It pays RM60 a year for seven years at which time you receive the RM1,000 principal. Prove that the annual return
Record the appropriate journal entry for each of transaction : In 2021, Borland Semiconductors, Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the transactions
Variety of methods to analyze data sets : During the course, you have applied a variety of methods to analyze data sets and uncover important information used in decision making.
Total production costs-k-too everwear corporation : K-Too Everwear Corporation can manufacture mountain climbing shoes for $15.5 per pair in variable raw material costs and $12.11 per pair in variable labor expen
Compute what would be approximate value after the split : If Kinmi's stock price had been $48 at the time of the split, what would be its approximate value after the split (other things equal)?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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