What is the present value of the annuities

Assignment Help Financial Management

Reference no: EM13731375

What is the Present Value of the following annuities? How did you get to your answer?

a) $3,000 a year for 10 years discounted to the present value at 8%.

b) $50,000 a year for 3 years discounted to the present value at 3%

c) $280 a year for 8 years discounted to the present value at 7%

d) $600 a year for 10 years discounted to the present value at 10%

Reference no: EM13731375

Questions Cloud

What is the intrinsic value of deployment specialists stock : Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 25% for two years and then at 7% thereafter. If the required return for Deployment Specialists is 12.0%, what is the intrinsic value of Deployment Specialists st..

Earnings were paid as dividends and nothing were reinvested : The stock of Nogro Corporation is currently selling for $10 per share. Earnings per share in the coming year are expected to be $2. The company has a policy of paying out 50% of its earnings each year in dividends. The rest is retained and invested i..

Calculate the price with the constant dividend growth model. : Sisters Corp expects to earn $8 per share next year. The firm’s ROE is 15% and its plowback ratio is 60%. If the firm’s market capitalization rate is 10%. Calculate the price with the constant dividend growth model.

Expected cash inflows-what is the projects payback : Project K costs $50,000, its expected cash inflows are $14,000 per year for 9 years, and its WACC is 12%. What is the project's payback? Project K costs $40,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 11%. What is..

What is the present value of the annuities : What is the Present Value of the following annuities? How did you get to your answer?

Assume that the interest received at the end of the year : You placed $6,397 in a savings account today that earns an annual interest rate of 7 percent compounded annually. How much will you have in the account at the end of 26 years? Assume that the interest received at the end of the year is reinvested to ..

Differences between minimization and maximization problems : What are the similarities and differences between minimization and maximization problems using the graphical solution approaches of LP?

Set up valuation formula with all the relevant cash flows : Storico Co. just paid a dividend of $3.00 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent divid..

What is the probability that the colors match : Abe holds 1 green and 1 red jelly bean in his hand. Bea holds 1 green, 1 yellow, and 2 red jelly beans in her hand. Each randomly picks a jelly bean to show the other. What is the probability that the colors match?

User Account

All Pages