A company predicts that the earnings will grow at 1% per year forever. Today, the company announced earnings of $4 million. What is the present value of all future earnings if the interest rate is 6% per year? This is assuming all cash flows occur at the end of the year

For a present sum of $620,000, determine the annual worth (in then-current dollars) in years 1 through 7 if the market interest rate is 12% per year and the inflation rate is 5% per year.The annual worth is $?

What is the future value of the following cash flows AT THE END OF YEAR 5 assuming a 6% interest rate, compounded annually? End of Year Cash Flow P2,500 2,750 1 2 3,000 3,250 3 3,500 45

Assume that the Inflation is predicted to have an average of 5% over the next 6 years. A company invests money with a return rate of 7.8%. Determine the following: a. How much money the company needs to invest today to have $500,000 actual dollars in 6 years. b. The value in today's money of the $500,000 that the company will have in 6 years.

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Consider an EOY geometric sequence of cash flows in which the first payment made was P2,000. This is continued for 5 years. Determine the Future equivalent values. The rate of increase is 20% per year after the first year, and the interest rate is 25% per year.

A company expects to receive the following cash flows $2,000 for the first ten years and then $3,000 for the next ten years. The discount rate is 10.0%. What is the present value of this 20-year cash flow? 7.

A company has a savings account with a 10% annually compounded return for five years. The value of the account at the end of five years will be $75,000. The implied annual interest is $75,000 x 0.10 = $7,500, and the present value of the savings account is $75,000 x 0.6209 = $46,567. What is the discounted value of the account at the beginning of Year 1? $67,500 $37,500 $75,000 $46,567

What principal deposited 5 years ago will grow to $33,441.22 in 3 years and 11 months from now if money grows at 2.58% compounded quarterly?

You found an investment opportunity to deposit $15,000 every year for 10 years into an account earning8%. You estimate general inflation to be 3% per year. What is the dollar value of your account at the endof 10 years in today’s real dollars?