We expect a perpetuity of quarterly cash flows of $80,000 starting in 1 quarter. Given a discount rate of 5.75% per year compounded semi-annually, what is the present value of this perpetuity?
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- 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 annuityWhat is the present value of a perpetuity stream of cash flows that pays P1,000 at the end of year one, and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 8%?We expect a perpetuity of quarterly cash flows of $80,000 starting in 1 quarter. Given a discount rate of 5.75% per year compounded semi-annually, what is the present value of this perpetuity?
- What is the present value of a stream of $800 cash payments, each to be made at the beginning of the next four years, with 10% annual compounding interest rate?(Present value of a growing perpetuity) What is the present value of a perpetual stream of cash flows that pays $3,500 at the end of year one and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 15%? What if the appropriate discount rate is 13%?If you put up $73,000 today in exchange for an annual 6.75 percent, 18-year annuity, what will the annual cash flow be?
- An investment offers to pay you $300 per quarter for 10 years. If the annual rate is 11% with quarterly compounding, then what is the present value of these cash flows?What is the present value of a growing perpetuity with the first monthly payment of $20 one month from today, and a monthly growth rate of 5% and monthly discount rate of 10%?A perpetuity will make its first payment in 20 years. The first payment will be $5,000, and future payments will increase at a 10 percent annual rate. What is the present value of this investment, assuming a 10% discount rate? Place Answer in Blank Above. What is the difference between a perpetuity and a growing perpetuity? What are real-world examples of each?
- You will receive cash flows of $23.42 next year from a perpetuity. The perpetuity is indexed to inflation, π=1.1%, such that payments grow at 1.2% faster than inflation. If the interest rate is 9.1% per year, what is the PV of the perpetuity?What is the present value of the following cash-flow stream if the interest rate is 12%? You receive 100 at the end of first year, 800 at the end of second year, and 460 at the end of third year. (12% is annual interest rate and given annual compounding) (Please round your answer to the nearest whole number)Find the present value of the following cash flow: receive $7 every year for 28years with the first payment being 9 years from now. Assume an effective annual rate of 5.1%
