Why th results are different at the different interest rate

Assignment Help Finance Basics
Reference no: EM13154264

How much would $1,000,000 due in 100 years be worth todayif the discount rate was 5%? if the discount rate was 10%. Discuss how and whythe results are different at the different interest rates. 

Reference no: EM13154264

Questions Cloud

Compute null and alternative hypotheses for height of plant : State the null hypothesis H 0 and the alternative hypothesis H 1 that we would use for this test. Determining null and alternative hypotheses for the height of a plant.
Qualify for sale or exchange treatment : In the current year, Blue Corporation (E & P of $1 million) redeems 100 shares from Eleanor for $290,000 in a transaction that does not qualify for sale or exchange treatment. With respect to the redemption, Eleanor will have a:
Alternative minimum taxable income : Tanver Corporation, a calendar year corporation, has alternative minimum taxable income of $7 million in 2010 (before adjustment for adjusted current earnings). If Tanver's adjusted current earnings is $16 million, its tentative minimum tax for 20..
Find the volume of gas at standard temperature : A gas measures 180. ml. at 870C and 800. mm Hg. Find its volume at standard temperature and 800 mm Hg of pressure.
Why th results are different at the different interest rate : whythe results are different at the different interest rates.
Conduct a regression analysis : Using Excel, conduct a regression analysis for the following data comparing vehicle weight with fuel efficiency, including:a.?Trendline chart b.?Equation c.?Correlation Coefficient
What is the highest percent yield of n2 that can be expected : During studies of the reaction below, 2 N2H4(l) + N2O4(l) ? 3 N2(g) + 4 H2O(g) a chemical engineer measured a less-than-expected yield of N2 and discovered that the following side reaction occurs
Determining earnings per common share : Marshall Company had 500,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 100,000 of which were issued on October 1, 2004. Net income for the year ended December 31, 2004,..
Perform one-tailed test-test statisitc and degree of freedom : If we assume that the monthly rents for apartments on the east side are normally distributed, is there enough evidence to conclude, at the .05 level of significance, that is less than $675?

Reviews

Write a Review

Finance Basics Questions & Answers

  Foreign exchange exposure and management

What are some financial crisis which have occurred in the last ten years recognize the causes and what were the solutions?

  Optimal financing

Wizard, Corporation, has a subsidiary in a country where the government allows only a small amount of earnings to be remitted to the US every year.

  Computation of cost of capital for the funds needed

Computation of cost of capital for the funds needed to meet the expansion goal and This capital structure is believed to be optimal

  Find the risk premiums for each factor

Assume stock returns can be explained by a two-factor model information for two diversified portfolios. The risk free rate is 4%

  Superior asset allocation ability

A mutual fund with a beta of 1.1 has outperformed the S&P500 over the last twenty years. Does the mutual fund manager; have had superior stock selection ability.

  Finance example - break even analysis

Assume EducateComp knows its fixed expenses are $100,000, its variable costs are  $500 each copy of AlgeComp, and they must to sell 15000 copies of AlgeComp to  break even the first year.

  Find the risky stock

Common stock A has an expected return of 10 percent, a standard deviation of future returns of 25 percent, and a beta of 1.25. Common stock B has an expected return of 12 percent,

  Difference between daily and annual compounding

Compute difference between daily and annual compounding, given the following data: (a) PV: $52,000, (b) NPER: 30, and (c) RATE: 10%.

  Cost of common stock equity-capm

Find out the required return that J&M common stock should provide. Find out J&M's cost of common stock equity using the CAPM.

  Compute the contingent payoff to the debt

The simple company has an outstanding debt obligation to the Complex Corporation of $250 suppose this is Simple's only debt.

  Investment analysis

Establish an estimated growth rate in earnings & dividends for British Petroleum. Note, in the dividend growth model, "g" is growth rate for earnings & dividends.

  Calculate current intrinsic value

Suppose you are an analyst studying Beranek Technologies, which was founded ten years ago. It has been profitable for the last five years, but it has needed all of its earnings to support growth and thus has never paid a dividend.

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