Question

**You are valuing an investment that will pay you $24,000
per year for the first 6 years, $28,000 per year for the next 10
years, and $54,000 per year the following 14 years (all payments
are at the end of each year). If the appropriate annual discount
rate is 6.00%, what is the value of the investment to you
today?**

Answer #1

27) You are valuing an investment that will pay you nothing the
first two years, $18,000 the third year, $20,000 the fourth year,
$24,000 the fifth year, and $30,000 (all payments are at the end of
each year). What is the value of the investment to you now if the
appropriate annual discount rate is 13.00%?
$102,414.54
$40,588.54
$92,000.13
$74,756.75
$52,177.07

You are valuing an investment that will pay you $14,000 the
first year, $16,000 the second year, $19,000 the third year,
$21,000 the fourth year, $25,000 the fifth year, and $31,000 the
sixth year (all payments are at the end of each year). What is the
value of the investment to you now if the appropriate annual
discount rate is 10.00%

1. You are valuing an investment that will pay you $6,000 the first
year, $8,000 the second year, $11,000 the third year, $13,000 the
fourth year, $17,000 the fifth year, and $23,000 the sixth year
(all payments are at the end of each year). What is the value of
the investment to you now if the appropriate annual discount rate
is 8.00%?
2.
You are considering buying a stock with a beta of 3.10. If the
risk-free rate of return...

1. You are offered an investment that will pay $100 annually for
7 years (the first payment will be made at the end of year 1) plus
$2,900 at the end of year 7. If the appropriate discount rate is
5%, assume annual compounding, what is the investment worth to you
today?
2. You are offered an investment that will pay $100 annually for
7 years (the first payment will be made at the end of year 1) plus
$2,900...

You have been offered an investment that promises to pay out
$20,000 at the end of the year, followed by payments of $30,000,
$40,000, and $50,000 at the end of the subsequent years. Yields in
the market are expected to steadily increase over the next year so
that the appropriate discount rate is 6% for the first year, 7% for
the second year, 8% for the third year, and $9% for the fourth
year. How much would you be willing...

You are considering the purchase of an investment that would pay
you
$12,000 per year for Years 1 and 2, $22,000 per year for Years 3
and 4,
and $8,000 per year for Years 5 and 6. If you require a 14
percent
rate of return, and the cash flows occur at the end of each year,
how
much would you be willing to pay for this investment?

Consider an investment that will pay you $500 in the first year.
This payment will grow by 10 percent each year through year 12.
Starting in year 13 it will pay you $1,200 annually for 15 years.
After that, it will pay you nothing. If your required rate of
return on this investment is 14 percent, how much would you be
willing to pay for it today? Round your answer to the nearest whole
dollar.

1a. Your grandmother will be giving you $3,000 per year for the
next four years, the first payment beginning at the end of the
first year What is the future value of these receivables in year 4
, if the interest rate is 6%?
b. Your grandmother will be giving you $3,000 per year for the
next four years, the first payment beginning at the end of the
first year What is the future value of these receivables in year...

You are considering the purchase of an investment that would pay
you $5,000 per year for Years 1‑5, $3,000 per year for Years 6‑8,
and $2,000 per year for Years 9 and 10. If you require a 16 percent
rate of return, and the cash flows occur at the end of each year,
then what is the MOST you would be willing to pay for this
investment? Answer to 0 decimal places.

An investment pays $2,050 per year for the first 4 years, $4,100
per year for the next 5 years, and $6,150 per year the following 9
years (all payments are at the end of each year). If the discount
rate is 8.05% compounding quarterly, what is the fair price of this
investment?
Work with 4 decimal places and round your answer to two decimal
places. For example, if your answer is $345.667 round as 345.67 and
if your answer is...

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