Question

2.1) Define Present Value 2.2) Calculate the Present Value of a cashflow of $300 per year...

2.1) Define Present Value

2.2) Calculate the Present Value of a cashflow of $300 per year for 3 years. Assume interest rate 8% per year.

2.3) The role of Insurance - Managing Risks Explain how to diversify a portfolio. Can we eliminate risks?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the present value of $3,300 per year received annually at the end of years...
What is the present value of $3,300 per year received annually at the end of years 14 to 66 and the interest rate is 8%?
Calculate the Present Value of the cash flow shown below. Interest rate is: 6.50% per year,...
Calculate the Present Value of the cash flow shown below. Interest rate is: 6.50% per year, compounded annually $0 $0 $745 $0 $3,140 $0 $4,000 $0 $0 $2,275 $0 year 0 1 2 3 4 5 6 7 8 9 10 $0 $0 -$4,470 $0 $0 $0 $0 -$3,020 -$3,020 $0 $0
Calculate the future value and the present value of the following certain ordinary annuities. (a) $...
Calculate the future value and the present value of the following certain ordinary annuities. (a) $ 2000 semi-annual for 8.5 years at 8% effective annual rate (b) $ 4000 per year for 6 years at 7.3% per annum to be compounded annually (c) $ 200 per month for 3 years 4 months, to 8% per annum to be compounded monthly Thanks a lot!
calculate the present worth of an expenditure of $85 per year for 6 years that starts...
calculate the present worth of an expenditure of $85 per year for 6 years that starts in 3 years from now if the interest rate is 20%. Construct a cash flow diagram as well
the present value of a perpetuity of 6500 paid at the end of each year plus...
the present value of a perpetuity of 6500 paid at the end of each year plus the present value of a perpetuity of 8500 paid at the end of every 5 years is equal to the present value of annuity of k paid at the end of each year of 25 years. interest is 6% convertible quarterly. calculate k. please show and explain work
What is the present value of $300 received at the beginning of each year for five...
What is the present value of $300 received at the beginning of each year for five years? Assume that the first payment is not received until the beginning of the third year (thus the last payment is received at the beginning of the seventh year). Use a 10% discount rate, and round your answer to the nearest $100. soution given: year 1: 1 x (1+0.1)^0 x 0 year 2: 1 x (1+0.1)^1 x 0 year 3: 1 x (1+0.1)^2 x...
Calculate the net present value ?(NPV?) for a 15?-year project with an initial investment of ?$15,000...
Calculate the net present value ?(NPV?) for a 15?-year project with an initial investment of ?$15,000 and a cash inflow of ?$2,000 per year. Assume that the firm has an opportunity cost of 15?%. Comment on the acceptability of the project. The? project's net present value is $ . ?(Round to the nearest? cent.)
Calculate the net present value ​(NPV​) for a 25​-year project with an initial investment of ​$10,000...
Calculate the net present value ​(NPV​) for a 25​-year project with an initial investment of ​$10,000 and a cash inflow of ​$2,000 per year. Assume that the firm has an opportunity cost of 17​%. Comment on the acceptability of the project. The​ project's net present value is ​?. ​(Round to the nearest​ cent.)
NPV   Calculate the net present value ​(NPV​) for a 15​-year project with an initial investment of...
NPV   Calculate the net present value ​(NPV​) for a 15​-year project with an initial investment of ​$1,000,000 and a cash inflow of ​$150,000 per year. Assume that the firm has an opportunity cost of 9​%. Comment on the acceptability of the project. The​ project's net present value is ​$____. ​(Round to the nearest​ cent.)
Calculate the net present value (NPV) for a 15-year project with an initial investment of $25,000...
Calculate the net present value (NPV) for a 15-year project with an initial investment of $25,000 and a cash inflow of $6,000 per year. Assume that the firm has an opportunity cost of 15%. 1. The project’s net present value is $___. (Round to the nearest cent) 2. Is the project acceptable? Yes or No
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT