What is this settlement worth in present value terms

Assignment Help Financial Management

Reference no: EM131185033

You are offered a court settlement in the following terms: you will receive 7 equal payments of $8,519 each every year, with the first payment being made 2 years from now. The current yearly interest rate is 4%. Assume yearly compounding. What is this settlement worth in present value terms?

Reference no: EM131185033

Questions Cloud

Consisted of diversified portfolio of stocks and bonds : Kunal Nayyar from California, had $50,000 in investments at the beginning of the year that consisted of a diversified portfolio of stocks (40 percent), bonds (40 percent), and cash equivalents (20 percent). If Kunal wanted to rebalance his portfolio ..

Consider an amortizing loan : Consider an amortizing loan. The amount borrowed initially is $13,456, the interest rate is 7% APR, and the loan is to be repaid in equal monthly payments over 25 years. As we know, while each monthly payment will be the same, the amounts of interest..

Calculate the present value of the annuity due : You can have a regular annuity of 3 payments of $706 each year, or you can receive the same payments as an annuity due. Which one is more valuable? To answer this, calculate the present value of the annuity due and subtract the present value of the r..

What is the growth rate implied in this forecast : Company XYZ is preparing a business plan. They expect to make a profit of $12,563 in year 1, $190,713 in year 2, and continue growing at the same rate until year 5. What is the growth rate implied in this forecast?

What is this settlement worth in present value terms : You are offered a court settlement in the following terms: you will receive 7 equal payments of $8,519 each every year, with the first payment being made 2 years from now. The current yearly interest rate is 4%. Assume yearly compounding. What is thi..

Quality invariably leads to better financial results : A process is capable if special cause variation is not present in the process. Random variation is also referred to as uncontrollable variation. Control charts are used to determine if there are unexpected variation in the process. Three items in par..

Organizations software development process : A project manager at COMSOFT Corporation has collected statistics on the organization’s software development process. He has the size of each project in number of lines of code for the past 20 projects and the number of design errors discovered in de..

A product is made up of two subsystems in series : A product is made up of two subsystems in series. The first subsystem consists of 15 components in series. The second subsystem consists of two components in parallel. The components in subsystem 1 are all of the same design and each has a 1/10,000 c..

Later sued alegius for racial harassment : Harold, a black man, worked for Alegius Financial Services as a sales representative. On three separate occasions over a period of six months, an anonymous co-worker left racist literature on the desks of all of the employees, including the superviso..

User Account

All Pages