Which of the given alternative would you choose

Assignment Help Finance Basics
Reference no: EM13854702

Your grand father has offered you a choice of one of the following alternative : $7500 now, $2200 a year after for nine years; or $31000 at the end of nine years. Assuming you could earn 10%annually, which alternative would you choose? If you earn 11% annually would still choose the same alternative?

Reference no: EM13854702

Questions Cloud

Case study: government jobs : What hobby or part-time job do you have that can lead to con-sumer benefit. How can you develop that into something you can put on your resume. What connection can you make between that and the major you are good at
The constant elasticity of substitution function : The Constant Elasticity of Substitution function. Determine the returns to scale of this production function. Find σ, the elasticity of substitution. Express K/L as a function of w/r. How does the relationship between K/L and w/r change when  ρ chang..
Sample data for parts and for suppliers : 1. The table below contains sample data for parts and for suppliers who provide those parts.  In discussing this data with users, we find that part ID, but not names, uniquely identify parts and that supplier names uniquely identify suppliers.
What specifically should be done to ensure that kamp : What specifically should be done to ensure that KAMP is successful
Which of the given alternative would you choose : Assuming you could earn 10%annually, which alternative would you choose? If you earn 11% annually would still choose the same alternative?
According to the benefit principle of taxation : Abe, Betty and Charlie are the only three students in my graduate Public Finance class and I am trying to determine how many office hours to hold per week for this class. according to the benefit principle of taxation. What would I charge each studen..
Current account balance and capital account balance : Suppose a country has net exports of 40, transfer payments of 20, net investment income of -15, and a balance of payments surplus of 10. Find the country's current account balance and capital account balance.
Free international export and imports have net benefit : Consumer surplus ….. when international trade is open as compared with a closed economy: Free international export and imports have a net benefit for: Which is steeper when it rises and steeper when it falls
What are the roles of money : What are the roles of money? Explain in your own words what each of these roles mean. Which of the roles do the following items satisfy? a. A credit card b. A painting by Rembrandt c. A subway token

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the weighted average cost of capital wacc

What is the weighted average cost of capital WACC

  Use at least one quality referencesnote wikipedia and other

write a two to three 2-3 page paper in which you1. assume that you are financial advisor to a business. describe the

  Determine the value without leverage

Milton Corporations expects free cash flow of $5 million each year. Milton'scorporate tax rate is 35 percent, and its unlevered cost of capital is 15%. The firm also has outstanding debt of $19.05 million,

  What is the value of this business

Assume that it will take exactly one year to get the first cash flow and each cash flow will occur on the same date ever year. If the current interest rate is 5% per year then what is the value of this business?

  Accrual accounting requires estimates of future outcomes

accrual accounting requires estimates of future outcomes. for example the reserve for bad debts is a forecast of the

  Currency exposure with diversification

How would you evaluate the following statement: "A firm can reduce its currency exposure by diversifying across different business lines."

  What will the year 1 operating cash flow

Depreciation is computed using MACRS over a 5-year life, and the cost of capital is 9 percent. Assume a 40 percent tax rate. What will the year 1 operating cash flow for this project be?

  What is the after-tax cost of debt financing

What is the after-tax cost of debt financing and KKOL., Inc has just issued a 10-year $1,000.00 par value, 10% annual coupon bond for a net price of $964.00.

  Adams inc will deposit 30000 in a 12 fund at the end of

adams inc. will deposit 30000 in a 12 fund at the end of each year for 8 years beginning december 31 2012. what amount

  What would be the potential investment consequences

What would be the potential investment consequences of a firm

  Examine the most common differences affecting employees

Examine the most common differences affecting employees

  What will be her realized yield on the bonds

Four years ago, Lisa Stills bought six-year, 12.59 percent coupon bonds issued by the Fairways Corp. for $947.68. If she sells these bonds at the current price of $859.68, what will be her realized yield on the bonds? Assume similar coupon-paying ..

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