You are looking at some real estate that the broker told you will be worth $558,641 in

Fantastic news! We've Found the answer you've been seeking!

Question:

You are looking at some real estate that the broker told you will be worth $558,641 in 7 years .If the interest rate is 10.46% how much should you be willing to pay for it today?

Related Book For answer-question

Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

See More Books

Posted Date: Feb 02, 2021 10:36 PM

See More Questions

How much should you be willing to pay for a lump sum of $10,000 five years from now if you can earn 3% every 6 months on other similar investments?
How much should you be willing to pay for one share of stock if the company just paid a $1 dividend, you expect the dividends to increase by 5% annually, and you need a 12% return on your investment?...
Akim is entering a bill from a new vendor whose name does not appear in the Choose a Vendor menu. What should he do? A. Close the Bill window, navigate to the Vendors tab and create the vendor, and...
1. Construct a simple pendulum starting with 20 cm length. 2. Hang the pendulum as pictures in one of the two methods shown above. 3. Using the protractor, displace the pendulum 10 degrees from the...
A wholesaler lists an item for $48.75 less 20%. What additional special promotion discount must be offered to retailers to get the net price down to $36.66?
Return on investment and residual income Required Supply the missing information in the following table for Ren Company. Sales ROI $396,000 Operating assets Operating income Turnover 2.2 Residual...
True or False: The following annual cash flows in years 1 thru 7, respectively, have a single real positive-valued root: $-\$ 100,+\$ 15,-\$ 25,+\$ 75,-\$ 10,+\$ 50$, $+\$ 50$.
JOB ORDER COSTING TRANSACTIONS B & L Enterprises makes garage doors. During the month of February, the company had four job orders: 303, 304, 305, and 306. Overhead was applied at predetermined...
es Initial investment Annual net income Expected life Salvage value Merrill's cost of capital $ 2,100,000 $ 200,000 8 years $ 210,000 Assume straight line depreciation method is used. Required: 10 1....
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2021, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her...
Boots Boats Inc. (BBI) is reviewing the following investment proposal for 2018: Initial Investment Depreciable Assets $27,740 Working Capital $3,000 Operations (per year for 4 years) Cash Receipts...
Made of high-strength steel, a tie rod is a slender cylindrical structure used to push (compression) and pull (tension) the front tires when the steering wheel is turning (Figure 2). The radius and...
How much should you invest each month in order to have $300,000 if your rate of return is 7% compounded monthly and you want to achieve your goal in 40 years? $ How much interest will you earn? $ How...
Provide a Java for loop that initialize sum to 0 then run 10 times. Each time generate and display one number as below that separates to other number by a comma; then add the number to sum. After...
Produce a method that identifies the common elements between two arrays. The method adds the similar elements to an ArrayList and returns it. Must be done in O(n log n) time. This method can only use...
Open SalesData class program and fill in DETAILED comments following all empty //. 2. The Average method code has been deleted. You will need to write the code to calculate and return the average of...
Be sure your answer is complete and include any relevant diagrams and examples. 3 paragraphs minimum. Since the 1980s the United States has been "getting tough" on crime by sending more criminals to...
Open Text Corporation provides a suite of business information software products. Exhibit 10-9 contains Note 10 from the companys 2013 annual report detailing long-term debt. Required: a. Open Text...
Describe LYONs, and note how they differ from conventional convertible securities. Are there any similarities between LYONs and conventional convertibles? Explain.
Assume that an investor pays $800 for a long-term bond that carries an 8% coupon. In 3 years, he hopes to sell the issue for $950. If his expectations come true, what yield will this investor...
The price of Myrtles Plumbing Supply Co. is now $80. The company pays no dividends. Ms. Bossard expects the price 4 years from now to be $110 per share. Should she buy Myrtles Plumbing stock if she...
Discuss how interest rate and exchange rate linkages between Eastland and Northland might change under each scenario. Discuss how interest rate and exchange rate linkages between Eastland and...
Working individually or in groups, answer the question, Is there such a thing as an accident-prone person?
Should Amazon screen out accident-prone individuals? Why or why not? If so, should they screen them?

You are looking at some real estate that the broker told you will be worth $558,641 in

Question:

Expert Answer:

Computation of Present value for the future cash paymen... View the full answer

Fundamentals of Investing

Students also viewed these general management questions