An investment will pay $15,000 at the end of each year for eight years and a one-time

Question:

An investment will pay $15,000 at the end of each year for eight years and a one-time payment of $150,000 at the end of the eighth year. Determine the present value of this investment using a 7% annual interest rate.

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

Step by Step Answer:

Related Book For answer-question

Financial Accounting

ISBN: 978-1259964947

10th edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

See More Books

Question Posted: Oct 11, 2019 11:38 AM

See More Questions

Comparison of Alternatives Jane Bauer has won the lottery and has the following four options for receiving her winnings: 1. Receive $100,000 at the beginning of the current year 2. Receive $108,000...
An investment will pay $20,000 at the end of the first year, $30,000 at the end of the second year, and $50,000 at the end of the third year. Determine the present value of this investment using a 10...
a. How much would you have to deposit today if you wanted to have $60,000 in four years? Annual interest rate is 9%. b. Assume that you are saving up for a trip around the world when you graduate in...
Determine the x-and y-intercepts on the graph of the equation. Graph the equation. y=-1.5x + 15
Find a, b, and c such that the graph of y = ax2 + bx + c passes through the points (1, 3), (4, 24), and (-2, 18)?
As the nurse manager in a long-term care facility, you believe these results are clinically significant. What recommendation would you make in terms of clinical care? Pressure ulcer area (mm) 2000...
Consider the IRR and ERR measures of worth. If we define a root to mean a value for the measure that results in $\mathrm{PW}=0$, then which of the following statements is true? a. Both IRR and ERR...
The following are misstatements that might be found in the client's year-end cash balance (assume that the balance sheet date is June 30): 1. The outstanding checks on the June 30 bank reconciliation...
Prepare the journal entries to record each of the transactions 1 through 6 as of the date of occurrence. Note: Round answers to the nearest whole dollar. 1. On January 1, new equipment is purchased...
Make-or-buy Beaus Bistro has a reputation for providing good value for its menu prices. The desserts, developed by the pastry chef, are one of the distinctive features of the menu. The pastry chef...
When a company signs a finance lease, does it record an asset and a liability on its balance sheet?
Using Table E.1 in Appendix E, fill in the present value factors for the following interest rates and periods: Present Value Factors i = 10% i = 5% i = 14% n = 4 n = 7 n = 10 PV of $1 PV of annuity...
1. What are some of the factors that might lead Christophe to make a poor decision about the review? 2. What would you do in this situation, and why?
What is the most important defining characteristic of multinational corporations? a.They can repeal the regulations and laws of supranational organizations. b.They have the ability to ignore the laws...
The production levels are those identified on the production possibility curve as well as those below or left of the production possibilities curve. O unattainable O allocatively efficient O...
what ways can technology and digital platforms either enhance or undermine integrity, particularly regarding issues such as privacy, misinformation, and online behavior ?
Give an example of a matrix that does not have an eigenvalue decomposition. Give an example of a matrix that has an eigenvalue decomposition, but that does not have an orthogonal eigenvalue...
If the expected age of death for a 20-year-old man is 75 years, how many years of life is a 20-year-old man who dies considered to have lost?
GoGo Ltd. manufactures three models of children's swing sets: Standard, Deluxe, and Super. The Standard set is made of steel, the Deluxe set is made of aluminum, and the Super set is made of a...
Conduct a VRIO analysis by ranking Husson University (in Maine) business school in terms of the following six dimensions relative to the top three rival schools. If you were the dean with a limited...
Clarks Landscaping bills customers subject to terms 3/10, n/50. Required: 1. Compute the annual interest rate implicit in the sales discount. (Round to two decimal places.) 2. If his bank charges 15...
The bookkeeper at Washington Company has not reconciled the bank statement with the Cash account, saying, I dont have time. You have been asked to prepare a reconciliation and review the procedures...
Differentiate accounts receivable from notes receivable.
3. Consider the Allen and Gale model of contagion, where the storage asset allows the costless transfer of one unit from one time period to another and the illiquid asset pays out R = 2 in period 2...
A settlement is a transaction that is an irrevocable action, relieves the employer (or the plan) of primary responsibility for a pension or postretirement benefit obligation, and eliminates...
Explain how you may apply economic concepts when managing a business/enterprise by answering the questions What are the demand drivers of the product of interest? What are the supply drivers?...

An investment will pay $15,000 at the end of each year for eight years and a one-time

Question:

Step by Step Answer:

Present value of investment amounts r...View the full answer

Financial Accounting

Students also viewed these Business questions