What is the value today of $1,600 per year, at a discount rate of 10 percent, if the first payment is received 7 years from now and the last payment is received 30 years from today? Multiple Choice $3,250.82 $7,952.35 $8,022.95 $8,114.65 $14,475.59

What is the value today of $1,600 per year, at a discount rate of 10 percent, if the first payment is received 7 years from now and the last payment is received 30 years from today? Multiple Choice $3,250.82 $7,952.35 $8,022.95 $8,114.65 $14,475.59

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...

See similar textbooks

Related questions

Q: What is the future value annuity due of RM32,000 for the next 10 years with a discount rate of 8%?…

A: Amount of Annuity = RM 32,000 Years(n) = 10 Interest Rate(r) = 8% Future Value of Annuity = RM…

Q: In exchange for a RM20,000 payment today, you are allowed to choose one of the alternatives below.…

A: PV = FV / (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest…

Q: How much would you be willing to pay today for an investment that would return P1,250 each year for…

A: The amount to be paid today is calculated as the present value of annuity

Q: You are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy…

A: Present value of annuity (PVA) formula: PVA=A×1-11+rmn×mrm A=annuity r=rate n=number of years…

Q: What is the future value annuity due of RM34,560 for the next 10 years with a discount rate of 12%?…

A: Using the FV function in excel

Q: $100 at the end of three years is worth how much today, assuming a discount rate of (i) 100 percent?…

A: Provided a certain rate of interest, present value is actual value of a potential amount of money or…

Q: What is the present value of 10,000 TL to be received at the end of 3 years if the discount

A: Present value is given future value divided by discount rate times number of years.

Q: The future value of $900 saved each year for 10 years at 8 percent. (Round your discount factor to 3…

A: C = Annual cash flow i.e. $900 r = Interest rate i.e. 0.08 or 8% n = Period i.e. 10 years FV =…

Q: You will receive annual payments of $4,000 at the end of each year for ten years (10 payments). The…

A: Given PMT (periodic payment) = $4000 nper (time) =10 rate =9%

Q: You have the choice of receiving $120,000 now or $59,000 now and another $84,000 five years from…

A: Compounding: Thus, compounding may be thought of as interest on interest, which has the effect of…

Q: The present value of $10,000 to be received five years from today, assuming a discount rate of 9%…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: What is the value today of receiving $2,581.00 per year forever? Assume the first payment is made…

A: A perpetuity is a series of fixed payments with no maturity date. In simple words, perpetuity is an…

Q: n annuity pays $1000 per year for 10 years. Inflation is 6 percent per year. ) If the real MARR is 8…

A: Real interest rate is reduced due to inflation but the actual rate is much larger.

Q: How much would be the FUTURE VALUE of a ₱20,000 single payment with annual rate of 12% to be…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What is the present value of RM9,070 to be received 5 years from today if the discount rate is 16…

A: Using the PV function in excel

Q: What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is…

A: Present value or value of 23 annual payments (PMT) of $1,400 at a rate of (r) of 8% at the end of 6…

Q: What is the present value of RM4,500 to be received 10 years from today if the discount rate is 6…

A: Using PV function in excel

Q: What is the present value of $500 to be received 10.5 years from today when the annual discount rate…

A: Note : 1. As per the guidelines only first question will be answered. Kindly post the remaining…

Q: What is the present value of $100,000 to be received after 40 years with an 18 percent discount…

A: Present value: It is the present value of future cash flows with a specified discount rate applied…

Q: 7. Determine the present value if OMR15,000 is to be received at the end of eight years and the…

A: Present value is defined as the concept, which used to state for an funds amount for today, which is…

Q: You purchase an annuity that will pay you $100 every three months for five years. The first $100…

A: FORMULA FOR PRESENT VALUE OF ANNUITY (FVA): PVA=A×1-1+rmm×nrm×1+rm where, A=annuity r=rate…

Q: B. Which of the following is worth the most today and why? a. $150 per year forever starting today -…

A: In order to determine the worth the most today, we have to find out the presennt value of all the…

Q: Present-value comparison) You are offered $100,000 today or $340,000 in 15 years. Assuming that…

A: We need to calculate the present value of both the alternative in order to understand which…

Q: ime value of money Your favorite uncle has offered you the choice of the following options. He…

A: Present value means the actual amount is adjusted with the interest rate so as to get the present…

Q: What is the value today of $3,200 per year, at a discount rate of 10 percent, if the first payment…

A: First, we calculate the present value in year 5 of the annuity and then once again calculate the…

Q: You are going to receive $220,000 in 50 years. What is the difference in present value between using…

A: Time value of money means that the money we receive today will be worth more than the money that…

Q: 3. If you receive $98 each month for 12 months and the discount rate is 0.07, what is the present…

A: In this Question we require to calculate the Present Value of Cash flows that we will receive every…

Q: eBook Project L costs $45,000, its expected cash inflows are $11,000 per year for 8 years, and its…

A: Information Provided: Costs = $45,000 Cash Inflows = $11,000 Term = 8 years WACC = 8%

Q: last payment is received 23 years from now? (Do not round intermediate calculations and round your…

A: Present Value is the todays value of the cash flows to be received in future . Present value…

Q: What is the present value of a $560 payment in two years when the discount rate is 8 percent?

A: Cash flow = $560 Time = 2 years PV Factor = 0.8573

Q: What is the present value of $149,000 discounted back 10 years if the appropriate internet rate is…

A: As given in question , we need to calculate $149,000 Present value discounted back 10 yrs @ 6%…

Q: 4. How much will you need to invest today to receive $50,000 in 10 years, assuming an investment…

A: Given Information: Future value is $50,000 Rate is 3% compounded monthly Number of years 10

Q: Future value. Upstate University charges $16.000 a year in graduate tuition. Tuition rates are…

A: Given:Upstate university charges $16000 a year in graduate tuition Growth rate=3.75% each…

Q: What is the present value of $100,000 to be received at the end of 25 years given a 5% discount…

A: Present value if the value of a future amount at current time. Present value formula: Present Value…

Q: 2. The following are exercises in present values: a. $100 at the end of three years is worth how…

A: We need to find the present values of the cashflows for part (a) to part (c). Let CFn be the…

Q: What is the value today of $5,100 per year, at a discount rate of 7.9 percent, if the first payment…

A: Given: Note: First payment in 6years, that means at the end of year 5.

Q: You wish to have $100,000 in 15 years. How much should you set aside today if the discount rate is…

A: Present Value: It is the current worth of a future sum of money at a fixed rate of return.…

Q: present value

A: SOLUTION:- Present Value= Future value/(1+i)n WHERE: Future Value =$150,000 i= 11%(discount rate)…

Q: Asma is expecting to get OMR 2200 at the end of 5 years. How much will be the value today if. a)…

A: Present Value(PV) is computed by discounting future amount using discount rate that is yet to…

Q: 2. The following are exercises in present values: a. $100 at the end of three years is worth how…

A: Since multiple questions are asked we will solve 1st question for you as per prescribed policy.…

Q: d. At what discount rate would the present value of 15 annual payments of $100, with the first…

A: Dear student, As specified in your question I have answered only Part d, e and f Part d

Q: What is the present value of $10,000 to be received at the end of 3 years if the discount rate is…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: What is the value today of $4,800 per year, at a discount rate of 8 percent, if the first payment is…

A: The formula to compute present value of annuity as follows: Present value of annuity=C×1-1+r-nr

Question

What is the value today of $1,600 per year, at a discount rate of 10 percent, if the first
payment is received 7 years from now and the last payment is received 30 years from
today?
Multiple Choice
$3,250.82
$7,952.35
$8.022.95
$8,114.65
$14,475.59

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 What is present value ?

VIEW

Step 2 calculating present value

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
What is the present value of $500 per year, at a discount rate of 8.25 percent, if the first payment is received 8 years from now and the last payment is received 18 years from now? Question 4 options: $2,126 $1,944 $1,761 $2,166 $2,025
What is the value today of $1,500 per year, at a discount rate of 9 percent, if the first payment is received 9 years from now and the last payment is received 27 years from today? Give typing answer with explanation and conclusion
What is the present value of $7,000 per year, at a discount rate of 2.5 percent, if the first payment is received 4 years from now and the last payment is received 14 years from now? $62,375 $58,732 $69,860 $59,880 $64,671
At a discount rate of 6.00%, find the present value of a perpetual payment of $ 1,000 per year. If the discount rate were lowered to 3.00%, half the initial rate, what would be the value of the perpetuity? Question content area bottom Part 1 a. If the discount rate were 6.00%, the present value of the perpetuity is $ enter your response here . (Round to the nearest cent.)
What is the present value of RM9,070 to be received 5 years from today if the discount rate is 16 percent? Select one: a. RM4,165.790 b. RM4,126.590 c. RM4,327.689 d. RM4,318.345
What is the present value of a perpetuity that pays $1,500 every year at a discount rate of 7.5%? Group of answer choices $20,000 $21,429 $1,395 $11,250
What is the value today of $4,800 per year, at a discount rate of 8 percent, if the first payment is received 7 years from today and the last payment is received 25 years from today?
What is the value today of receiving $2,581.00 per year forever? Assume the first payment is made next year and the discount rate is 8.00%. #11 O Submit Answer format: Currency: Round to: 2 decimal places. # 12 e What is the value today of receiving $1,569.00 per year forever? Assume the first payment is made 5.00 years from today and the discount rate is 7.00%. Submit Answer format: Currency: Round to: 2 decimal places.
What is the value today of $1,200 per year, at a discount rate of 6 percent, if the first payment is received 7 years from now and the last payment is received 22 years from today?
If you put up $29,000 today in exchange for a 7.25 percent, 13-year annuity, what will the annual cash flow be? Multiple Choice $3,719.74 $3,323.85 $3,519.21 $2,230.77 $6,414.51
What's the present value of a perpetuity that pays $260 per year if the appropriate interest rate is 4.9%? Group of answer choices $5,819 $6,094 $5,431 $5,056 $5,306