John Longwaite will receive $100,000 in 50 years. His friends are very jealous of him. If the
Question:
John Longwaite will receive $100,000 in 50 years. His friends are very jealous of him. If the funds are discounted back at a rate of 14 percent, what is the present value of his future "pot of gold"?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
John Lonwaite Discount ...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Foundations of Financial Management
ISBN: 978-0077454432
14th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Question Posted:
Students also viewed these Finance questions
-
Phil Goode will receive $175,000 in 50 years. His friends are very jealous of him. If the funds are discounted back at a rate of 14 percent, what is the present value of his future pot of gold?
-
Phil Goode will receive $175,000 in 50 years. His friends are very jealous of him. If the funds are discounted back at a rate of 14 percent, what is the present value of his future "pot of gold"?
-
What is net present value ?
-
Bill and Mary are married. Mega Corporation employs them both. In 2018, Mary earned $70,000 and Bill earned $135,000, in both cases W-2 wages. How much FICA tax were they required to pay for 2018?
-
You manage a car dealership in a large city. Many of your sales employees are very successful and have purchased their own vehicles from your dealership. Your dealership finances the sale of some of...
-
6. You need $42,341 to purchase your dream car, but only have $20,811 today. If you want to be able to purchase the car in 7 years, what will the annual interest rate have to be? 7. If a local lender...
-
Steven Zhang, regional director of sales for Right Times Uniform Company, is reviewing the rsums and applications and his notes on three job candidates he interviewed for a vacant sales position in...
-
The radiant energy incident on the earths surface on a sunny day is roughly 900 W/m2. Collecting and focusing sunlight and using the focused beam to heat a fluid is an old idea, and as the...
-
You are going to loan money to your brother-in-law. He is borrowing $1000 for six months. You have learned that the value of money may go down and buy less in the future. You decide to charge your...
-
Idexo Corporation is a privately held designer and manufacturer of licensed college apparel in Cincinnati, Ohio. In late 2019, after several years of lackluster performance, the firms owner and...
-
You invest $2,500 a year for three years at 8 percent. a. What is the value of your investment after one year? Multiply $2,500 1.08. b. What is the value of your investment after two years? Multiply...
-
Barney Smith invests in a stock that will pay dividends of $3.00 at the end of the first year, $3.30 at the end of the second year, and $3.60 at the end of the third year. Also, he believes that at...
-
Kittner, Inc., is a small company with three people working in the expenditures processes. One of the three employees is the supervisor of the other two. Some tasks that must be accomplished within...
-
In your opinion, what were the three most important causes of the 2008 financial crisis?
-
Why have companies in emerging markets become more competitive abroad?
-
Describe the steps in a typical bankers acceptance transaction. Why is the bankers acceptance form of fi nancing ideal in foreign transactions?
-
In addition to the IKEA in India example, what are some other success stories of companies that derive business benefits from CSR?
-
Why do firms employ global teams in their organization?
-
The following Treasury bond quote appeared in The Wall Street Journal on May 11, 2004: Why would anyone buy this Treasury bond with a negative yield to maturity? How is this possible? 5/15/2009 9.125...
-
Prove that the mean heat capacities C P H and C P S are inherently positive, whether T > T 0 or T < T 0 . Explain why they are well defined for T = T 0 .
-
At the end of January, Mineral Labs had an inventory of 775 units, which cost $12 per unit to produce. During February, the company produced 900 units at a cost of $16 per unit. If the firm sold...
-
Convex Mechanical Supplies produces a product with the following costs as of July 1, 2012: Material ............................... $ 6 Labor .................................. 4 Overhead...
-
The Bradley Corporation produces a product with the following costs as of July 1, 2014: Material .........$4 per unit Labor .......... 4 per unit Overhead ....... 2 per unit Beginning inventory at...
-
My company has equity beta of 0.56, 5.02% cost of (risk-free) debt, and market risk premium is 5% over the risk-free rate. D/(D+E) ratio is -31.7% and E/(D+E) ratio is 131.7%. Corporate tax rate is...
-
Discuss the main factors which a company should consider when determining the appropriate mix of long-term and short-term sources of finance in its capital structure.
-
Evaluate the impact of central bank interest rate policies, such as the federal funds rate in the United States or the repo rate in India, on various sectors of the economy, including consumption,...
Study smarter with the SolutionInn App