### What is the present value of your? windfall

Assignment Help Financial Management
##### Reference no: EM131835146

You have just received a windfall from an investment you made in a? friend's business. He will be paying you \$32,086 at the end of this? year, \$64,172 at the end of the following? year, and \$96,258 at the end of the year after that? (three years from? today). The interest rate is 14.3% per year.

a. What is the present value of your? windfall?

b. What is the future value of your windfall in three years? (on the date of the last? payment)?

#### Questions Cloud

 What kind of deal did the running back scamper off with : If the appropriate interest rate is 11 percent, what kind of deal did the running back scamper off with? Couple thinking about retirement : A couple thinking about retirement decide to put aside \$3,000 each year in a savings plan that earns 8% interest. What was annual increase in selling price : Assume that in January 2013, the average house price in a particular area was \$286,400. What was the annual increase in selling price? Saving up for down payment on house : Suppose you are saving up for a down payment on a house. What is the present value of your? windfall : What is the present value of your? windfall? What is the future value of your windfall in three years? (on the date of the last? payment)? Annual rate of interest must you earn on your investment : What annual rate of interest must you earn on your investment to cover the cost of your child’s college education? Unique investment opportunity : You have been offered a unique investment opportunity. Account immediately after the third deposit is made : how much will be in the account immediately after the third deposit is made? Demonstrate that the internal rate of return of investment : Demonstrate that the internal rate of return of the investment is 13.51%.

### Write a Review

#### Calculate the return on invested capital for each firm

Firms SH and MH are identical except for their financial leverage ratios and the interest they pay on debt. Each has \$20 million in invested capital, has \$4 million of EBIT, and is in the 40% federal-plusstate tax bracket. Calculate the return on inv..

#### Develop an amortization schedule for this loan

Develop an amortization schedule for this loan. What is the annual mortgage payment? What is the total interest payment from year 1-5?

#### Find the present value of the annuity

On the basis of an interest rate of 5 percentage per half-year, find the present value of the annuity.

#### Days sales in inventory and inventory turnover

How many days did Tater and Pepper’s inventory stay on the premises? How many times per year did Tater and Pepper’s inventory turn over?

#### What is expected dividend per share

Warr Corporation just paid a dividend of \$1.25 a share (that is, D0 = \$1.25). The dividend is expected to grow 8% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years?

#### Beneficiary of his retirement benefits

Don names a trust as the beneficiary of his retirement benefits. His wife, Milly, and their children Ed and John are beneficiaries of the trust. Which of the following statements regarding RMDs are true?

#### What is the size of the balloon payment

Suppose that you take out a mortgage loan with the following characteristics. What is the size of the balloon payment?

#### What is the nal of the lease from the lessor viewpoint

You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner. What is the NAL of the lease from the lessor's viewpoint?

#### What was the cash flow to creditors and stockholders

If no new debt was issued during the year, what was the cash flow to creditors? what was the cash flow to stockholders?

#### Calculate the expected rate of return on investments

Calculate the expected rate of return on investments X and Y using the most recent years data.

#### Explain why limited leverage is good for business

Frank Smith has been a plumber in the college town of Turlock, CA for the last thirty years. All the people who know him call him Frankie because he is friendly, social, and charges a fair price for his services. His business has grown because new cu..