an investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years from now. if rhe opportunity rate is 7.07 percent per year, what is the present value of the investment?
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A: Calculation of Present value (PV):
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Q: An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300…
A:
Q: An investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years…
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- An investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years from now. if the opportunity rate is 7.07 percent per year, what is the present value of the investment?An investment will pay $150 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and incur a $500 cost at the end of Year 6. If other investments of equal risk earn 6.7% annually, what is this investment’s present value? Its future value?An investment will pay S100 at the end of each of the next 3 years, $200 at the end of Year 4, 300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is this investment's present value? Its future value?
- An investment opportunity requires a payment of $620 for 12 years, starting a year from today. If required rate of return is 6.00 percent, what is the value of the investment to you today?An investment offers $8800 per year for 14 years with the first payment occuring one year from now. Assume the required returnis 12 percent. a. What is the value of investment today? b. What would the value be if the payment occured for 39 years? c. What would the value be if teh payments occured for 74 years? d. What would the value be if the payments occured forever?An investment will pay $100 at the end of each of the next 3 years, $200 at the end of year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8 percent annually, what is its present value? Its future value?
- An investment will pay $150 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and incur a $500 cost at the end of Year 6. If other investments of equal risk earn 6.7% annually, what is this investment’s present value?An investment pays an annual cash flow of $1 forever. The appropriate discount rate is 4% per year. What is the present value of this investment opportunity?An investment offers $6,100 per year for 15 years, with the first payment occurring today. If the required return is 6 per cent, what is the value of the investment?
- What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every year after that, when the interest rate is 8%?Consider an investment that offers $4,000, $5,000 and $6,000 in the next 3 years, with the first payment occurring one year from now. The required return is 7%. What is the present value of this investment?An investment will pay $25 per year (indefinitely), starting in one year’s time. The annual payments will grow at a rate of 3% per year. If the price of this investment is $200, what is its rate of return?
