# Question

Consider the streams of income given in the following table.

a. Find the present value of each income stream, using a 15% discount rate.

b. Compare the calculated present values and discuss them in light of the fact that the undiscounted total income amounts to $10,000 in each case.

a. Find the present value of each income stream, using a 15% discount rate.

b. Compare the calculated present values and discuss them in light of the fact that the undiscounted total income amounts to $10,000 in each case.

## Answer to relevant Questions

For each of the investments below, calculate the present value of the annual end-of-year returns at the specified discount rate over the given period. You purchased a car using some cash and borrowing $15,000 (the present value) for 50 months at 12% per year. Calculate the monthly payment (annuity). If you could earn 9% on similar-risk investments, what is the least you would accept at the end of a 6-year period, given the following amounts and timing of your investment? a. Invest $5,000 as a lump sum today. b. Invest ...Define and differentiate among the diversifiable, undiversifiable, and total risk of a portfolio. Which is considered the relevant risk? How is it measured? Explain what is meant by beta. What type of risk does beta measure? What is the market return? How is the interpretation of beta related to the market return?Post your question

0