What is the present value of this investment

Assignment Help Financial Management

Reference no: EM13987747

You win a scratch off lottery ticket that promises to pay an initial payment of 1,000 this year and grow at a rate of 5% forever. If the discount rate is 6%, what is the present value of this investment?

Reference no: EM13987747

Questions Cloud

The statistics budget : The statistics budget:

Funds left in this bucket in your parents portfolio : Your brother Adam has decided to enter graduate school in 4 years. Your parents have been saving $ 5000 per year for the last 7 years. The 4 years have passed and he chooses Officer’s Training School instead. With a degree in finance you know that th..

Describe the size-structure and composition of mutual fund : Describe the size, structure and composition of the mutual fund industry. Do you consider these characteristics as having a positive or negative impact on investors? Why?

Legitimate areas of community benefit : The Catholic healthcare association recognizes which of the following as legitimate areas of community benefit?

What is the present value of this investment : You win a scratch off lottery ticket that promises to pay an initial payment of 1,000 this year and grow at a rate of 5% forever. If the discount rate is 6%, what is the present value of this investment?

Cash flows from operations and free cash flows : Determine the after cash flows from operations and free cash flows. Prepare a statement of free cash flows using table below.

Critical drivers that influence performance attainment : Which of the following is not one of the four critical questions that must be answered for dashboard reporting? What is the firm's strategic vision? what is most important to the firms success? what are critical drivers that influence performance att..

Net income and cash flow from operations : Using the following information below, prepare cash flow statement using the table below. Determine the following: net income, cash flow from operations, cash flow from investment activites cash flow from financing activities, increase in cash and en..

Securities-which portfolio has the lowest risk : Suppose there are three securities (A, B, and C) to choose from to create your portfolio. Next year the economy will be in an expansion, normal, or recession state with probabilities 0.40, 0.33, and 0.27, respectively. where the numbers inside parent..

User Account

All Pages