10) An annuity is set up that will pay $1500 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 9%? A) $5776 B) $9626 C) $11,551 D) $13,476
Q: When would I use the arithmetic average risk premium (as opposed to the geometric risk premium)?
A: Your answer: The arithmetic average risk premium is used when the returns are not reinvested and…
Q: let's consider a capital investment analysis of purchasing a patent for $6,000,000 with a 10-year…
A: NPV is the net present value. It is a very important capital budgeting tool. NPV is computed by…
Q: Find the future value of the following ordinary annuity. Payments are made and interest is…
A: Future value of an ordinary annuity The value of the sum of future cash flows is called the future…
Q: e. Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round…
A: Here, WACC = 13% To Find: Part E. NPV profiles at different rates =? Part F. Crossover rate =? Part…
Q: answer is 2.9 years. Please show your solution MANUALLY. don't use excel or financial calculator…
A: Discounted pay back period is amount of time required to recover initial amount of investment…
Q: The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $75 per share. You…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: i. Derive the revenue function. ii. Derive a cost function. iii. What is the total cost of producing…
A: Revenue function gives an equation to determine the revenue generated from selling a good.This is…
Q: Using the table below create SinCo's Income Statement and Balance Sheet for the Prior Year and…
A: We need to cast the financial statements for both they years first. Then based on the financial…
Q: Consider the following data: Monthly Profit of a Gym Month Jan-12 Feb-12 Mar-12 Apr-12 May-12…
A: Moving average A stock indicator used in technical analysis that helps in calculating the moving…
Q: You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks,…
A: Financial Planning: Personal Financial Planning refers to the process of carefully allocating an…
Q: Locate the Treasury bond in Figure 8.4 maturing in August 2042. Assume a par value of $10,000. Is…
A: Bid-Ask Spread The bid-ask spread is the variation between the highest price a buyer is willing to…
Q: Denver, Incorporated, has sales of $21 million, total assets of $18.3 million, and total debt of…
A: Profit margin measures the net income generated by the firm from the net sales revenue of the firm…
Q: A T-bill that matures in 120 days has a discount rate (yield) of 7%. If the bill has a $1000 face…
A: T bills are issued at discount to the face value and the discount on the bill depends on the…
Q: A PRICE TAG OF P2,600.00 IS PAYABLE IN 60 DAYS BUT IF PAID WITHIN 30 DAYS IT WILL HAVE A 4%…
A: Rate of Interest = DiscountPrincipal - Discountx100
Q: What's the value to you of a $1,000 face-value bond with an 8% semi-annual coupon rate and 7 years…
A: Face value of the bond = $1,000 Semiannual coupon amount (C) = $40 (i.e. $1000 * 0.08 / 2)…
Q: paste
A: The company can expect a profit and should consider moving forward with the investment if NPV IS…
Q: contract. HIS quartert is negotiating his opportunity cost is 7%. He has been offered three possible…
A: Calculate the future value of all contract streams of cash flows at 7%: Present value of cash flow…
Q: Suppose that Joseph, an existing customer of this product (with the arrangement specified above),…
A: The present value of money is the equivalent money that is equivalent to the future payments based…
Q: Using the DuPont method, evaluate the effects of the following relationships for the Butters…
A: Formulas Asset turnover ratio = Return on assets / profit margin Return on equity = Return on…
Q: Why is the historical investor risk premium so much higher than the implied investor risk premium in…
A: Risk premium refers to the return on the investment that is expected by an asset as a yield that…
Q: 6) What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per…
A: Given, PV of amount is $20000 rate is 4% term is 4 years
Q: The market value of the equity of Nina, Incorporated, is $594,000. The balance sheet shows $33,000…
A: Enterprise value (EV) is also known as firm value. Essentially it is a measure of a company’s total…
Q: SDJ, Incorporated, has net working capital of $3,490, current liabilities of $4,950, and inventory…
A: Net working capital = $3,490 Current liabilities = $4,950 Inventory = $4,990 Current assets = ?…
Q: Project C0 C1 C2 C3 C4 A -5,000 +1,000 +1,000 +3,000 0 B -1,000 0 +1,000 +2,000…
A: The NPV analysis is used for finding the profitability of a project. It uses the concept of the time…
Q: Solve Problem 20.23 using Excel.
A: In this problem the concept of time value of money will be applied to get the answer. As per the…
Q: You plan to buy a house in three years and would like to put $100,000 down at the time of buying.…
A: Concept. 1. Future value ( if no annuity payments are involved). FV = P (1+r)n Where FV= Future…
Q: Seeing further financing opportunity with the firm, mCommerceBank has sweetend the deal further.…
A: Loan Amount = $2,102 Interest Rate = 8% Monthly Payment = $95.05
Q: Patricia has $5,740 in a savings account earning 4.0% annually. She plans to use the money in the…
A: Initial investment (I) = $5,740 Annual saving (C) = $3,280 Period (n) = 3 years Interest rate (r) =…
Q: Mobius, Incorporated, has a total debt ratio of .32. a. What is its debt-equity ratio? (Do not round…
A: We know, Total Debt Ratio = Total Debt/ Total Assets Total Equity Ratio = Total Equity/ Total…
Q: Making the accept or reject decision Blue Hamster Manufacturing Inc.'s decision to accept or reject…
A: The project can be evaluated based on the discounted cash flows which include the NPV method and IRR…
Q: An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a…
A: Bond price It is basically the present value of all cash inflows associated with a bond. In excel,…
Q: 5-21 EVALUATING LUMP SUMS AND ANNUITIES. Kristina just won the lottery, and she must choose among…
A: As per Bartleby guidelines,If a question with multiple sub-parts are posted, first 3 sub-parts will…
Q: What is meant by asymmetric information? Z Ltd has a K1million bond issue outstanding. If deposits…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: With emphasis on Ghana’s monetary system, explain the term inflation targeting. Hence, highlight the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: f the market maker is willing to purchase the entire block of 1,500 shares from Alexis and, from…
A: The bid price refers to the buy price and ask price refers to the sell price. The bid-ask spread is…
Q: Explain how exchange rates can affect a firm’s global sales.?
A: The exchange rates can be defined as one country’s currency’s price in terms of the price of another…
Q: Each day, a certain stock has an expected increase of $0.04 with variance of $0.10. By calculating,…
A: A stock is a sort of financial instrument that indicates the holder owns a share of the issuing…
Q: Given 1-year par rate = 3.2% 2-year par rate = 5.2% 3-year par rate = 6.1% 4-year par rate = 7.5%…
A: Given 1-year par rate = 3.2% 2-year par rate = 5.2% 3-year par rate = 6.1% 4-year par rate = 7.5%
Q: Mary is interested in driving a new Tesla Model 3 for four years. Tesla quoted Mary two options—…
A: Present value of annuity With annuity (PMT), periodic interest rate (r) and period (n), the present…
Q: Given the following data, what is the coefficient of variation? (in decimal form) Month Aug Sept…
A: As per the given information: Month Return Aug 15% Sept -9% Oct 10% Nov 6% To…
Q: Determine the interest earned on $5000 deposited in a savings account, for 10 years, based on one of…
A: As per Bartleby guidelines,If a question with multiple sub-parts are posted, first 3 sub-parts will…
Q: Suppose a state lottery prize is to be paid in 25 payments of $240,000 each at the end of each of…
A: Given, The payment is $240,000 Term of investment is 25 years
Q: Which of the following statements is (are) correct? (i) Eurodollar pays lower interest rates…
A: Financial instruments are agreements for the use of money that can be bought, sold, created,…
Q: please no copy paste no plagiarism when benefit is constant, how to manipulate the cost to have…
A: Net present value is the difference between the present value of cash flow and initial investment…
Q: annuity that pays $800 each year? If this was an annuity due, what would its future value be?
A: Annuity due is annuity that pay the payment in beginning of period but ordinary annuity payments are…
Q: You and your friend are both 20 years of age. You decide to invest $200/month for 15 years in an…
A: The concept of TVM states that money inherently has an interest-earning capacity which makes the…
Q: The maintenance for a bus, whose life is 10 years, is $1500 per year starting the fourth year,…
A: Present worth is the discounted value of all the future cash flows to the present using appropriate…
Q: MR. MAGBITANG MADE A MONEY MARKET PLACEMENT OF P100,000,000 FOR 30 DAYS AT 12% PER YEAR. IF THE…
A: Net interest refers to the amount earned from investment securities having a high level of…
Q: Find the future value of the following annuity due. Payments of $600 for 9 years at 5% compounded…
A: To Find: Future Value
Q: The first product Suzie represents is a short term loan. Here, customers can borrow small amounts of…
A: Simple Interest: When the interest is charged or paid on a fixed principal over a given period is…
Step by step
Solved in 2 steps
- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityAn annuity is set up that will pay $1,700 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 6%? OA. $12,512 OB. $7,507 OC. $17,517 OD. $15,014An annuity is set up that will pay $1,500 per year for nine years. What is the present value (PV) of this annuity given that the discount rate is 9%? A. $8,993 B. $10,792 C. $5,396 D. $12,590
- What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.An annuity pays $54 per year for 28 years. What is the future value (FV) of this annuity at the end of those 28 years, given that the discount rate is 8%? A. $5,148.30 B. $7,207.62 C. $6,177.96 D. $3,088.98You buy an annuity that will pay you $24,000 annually for 25 years. The payments are paid on the first day of each year. What is the value of this annuity today if the discount rate is 8.5 percent? 241309 266498 258319 251409 245621 A O BO .C DO E O
- What is the present value of the following annuity:$ 2,500 a year for 10 years discounted back to the present at 7 percent?What is the present value of a $1,000 annuity for 10 years, with the first payment occurring at the end of year 10 (that is, ten $1,000 payments occur- ring at the end of year 10 through vear 19). given a discount rate of 10 percent?9) A retirement gratuity of $123 900.00 is invested in annuity deferred for 10 years. The annuity provides payments of $9600.00 due at the beginning of every six months. If interest is 7.41% compounded annually, for how long will annuity payments be made?
- What is thevpresent value of an annuity of 1,600 per year for 10 years, with the first payment occurring at the end of year 10 ( that is, ten 1,600 payments occurring at the end of year 10 through year 19), given a discount rate of 9 percent?What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The appropriate interest rate is 7 percent. Answers: a. $10,000 b. $6,452 c. $20,423.74 d. $4,657 An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? Answers: a. $1,134 b. $5,324 c. $2,345.50 d. $2,569.77 *PLEASE SHOW ALL STEPS! CANNOT USE EXCEL TO SOLVE! CAN USE CALCULATOR FUNCTIONS!!An annuity pays $13 per year for 100 years. what is the future value (PV) of this annuity at the end of those 100 years given that the discount rate is 8%