Question

What is the value of receiving $5,000 per year starting in one year for 10 years...

What is the value of receiving $5,000 per year starting in one year for 10 years assuming a 3% interest rate? What if the $5,000 per year cash flows start in 9 years and continue for 12 years?

Homework Answers

Answer #1

EXPLAINED WITH FORMULA, NO EXCEL FUNCTION IS USED. JUST WRITTEN IN EXCEL

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the value of receiving $2,000/year forever starting in one year if the discount rate...
What is the value of receiving $2,000/year forever starting in one year if the discount rate is a monthly compounded APR of 7%?
HP 10bII+ Financial Calculator a) What is the PV of receiving 2,000/year starting in 3 years...
HP 10bII+ Financial Calculator a) What is the PV of receiving 2,000/year starting in 3 years going for 16 years if the discount rate is 12%? b) What is the NPV of a project that costs $1,500,000 and generates 120,000/year forever if the discount rate is 9%? c) A project will provide in 3 years either $8,000 with 20% probability, $13,000 with a 30% probability, $18,000 with a 40% probability, and $45,000 with a 10% probability.  Given a 6% discount rate,...
what is the value of a perpetuity starting in 12 years paying 300 year if the...
what is the value of a perpetuity starting in 12 years paying 300 year if the discount rate is 9% per year ?
You receive $100 per year for the next 10 years starting 1 year from today for...
You receive $100 per year for the next 10 years starting 1 year from today for a total of 10 payments. If the interest rate that you receive is 5% per year and the inflation rate is 3% per year, draw the cash flow diagram in constant dollars with a base year of 0. Solve for the future value at year 10 using constant dollar analysis.
You receive $100 per year for the next 10 years starting 1 year from today for...
You receive $100 per year for the next 10 years starting 1 year from today for a total of 10 payments. If the interest rate that you receive is 5% per year and the inflation rate is 3% per year, draw the cash flow diagram in constant dollars with a base year of 0. Solve for the future value at year 10 using constant dollar analysis.
You expect to be paid $5,000 per month for the next 6 years with the first...
You expect to be paid $5,000 per month for the next 6 years with the first cash flow starting in 1 month. Assuming an annualized APR (AEY) of 9%, what is the present value of these cash flows to the nearest dollar? A) 237,598 B) 240,867 C) 242,856 D) 269,155 E) None of the above
Receiving $80,000 per year for five years is equivalent to investing what amount today at 14...
Receiving $80,000 per year for five years is equivalent to investing what amount today at 14 percent? Provide a mathematical formula to solve this problem, assuming use of a present value annuity table to convert the future cash flows to their present value equivalents. Provide the expression for the Excel spreadsheet function that would perform the present value conversion.
What is the present value of receiving $500 each year for three years at an interest...
What is the present value of receiving $500 each year for three years at an interest rate of 12 percent, compounded annually? (The first receipt is at the end of year)
An investment is expected to generate 10 annual cash flows of $2111 per year, starting in...
An investment is expected to generate 10 annual cash flows of $2111 per year, starting in exactly two years. There is an additional cash flow of $2907 expected in exactly 13 years. If the appropriate annual interest rate is 5%, compounded annually, what would you expect someone to pay for this investment today?
Starting one month from now, you need to withdraw $250 per month from your bank account...
Starting one month from now, you need to withdraw $250 per month from your bank account to help cover the costs of your university education. You will continue the monthly withdrawals for the next four years. If the account pays 0.2% interest per month, how much money must you have in your bank account today to support your future needs? How much money must you have in your bank account today to support your future needs? $ (Round to the...