What is the present value of an investment that yields $1,000 to be received in 7 years
Question:
What is the present value of an investment that yields $1,000 to be received in 7 years and $1,000 to be received in 10 years if the discount rate is 6 percent?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (2 reviews)
STEP 1 Formulate a Solution Strategy The present value of our investment can be computed using e...View the full answer
Answered By
John Kago
Am a processional practicing accountant with 5 years experience in practice, I also happens to have hands on experience in economic analysis and statistical research for 3 years. am well conversant with Accounting packages, sage, pastel, quick books, hansa world, etc, I have real work experience with Strata, and SPSS
4.70+
31+ Reviews
77+ Question Solved
Related Book For
Foundations Of Finance
ISBN: 9781292155135
9th Global Edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Question Posted:
Students also viewed these Business questions
-
What is the future value of $1,101 invested for 9 years at 7 percent compounded annually? 2. What is the present value of $18,664 to be received 7 years from today if the discount rate is 7 percent?...
-
What is the present value of an investment that guarantees a payment of $22,500 per year for the next five years if the interest rate is 15% compounded annually? What is the present value of an...
-
What is the present value of an investment that pays $80 at the end of each year for 10 years and pays an additional $1,000 at the end of the tenth year if the required rate of return is 7%? 8%? 9%?
-
The registrar at a prominent northeastern university recently scheduled an instructor to teach two different classes at the same exact time. Help the registrar prevent future mistakes by describing a...
-
The populations P (in thousands) of Horry County, South Carolina, from 1971 through 2014 can be modeled by P = 76.6e0.0313t where t represents the year, with t = 1 corresponding to 1971. (a) Use the...
-
Your task here is to evaluate advertising in two product categories: food and technology. For each set of ads (Dannon and Taco Bell in food; Apple iPod and iPhone in technology) determine: 1. What...
-
What are some of the technological issues that arise through the use of technology in the function of selection?
-
In July 2009, an American investor buys 1,000 shares in a Mexican company at a price of 500 pesos each. The share does not pay any dividend. A year later she sells the shares for 550 pesos each. The...
-
Within the starting, a buyer hurt by a few commercial hone had the capacity to sue the commerce based on a claim of extortion at common law. To be effective on a common-law extortion claim, in...
-
How much must we deposit in an 8 percent savings account at the end of each year to accumulate $5,000 at the end of 10 years?
-
Youre on vacation in a rather remote part of Florida and see an advertisement stating that if you take a sales tour of some condominiums you will be given $100 just for taking the tour. However, the...
-
Sun Corporation became a subsidiary of Pam Corporation on July 1, 2016, when Pam paid $1,980,000 cash for 90 percent of Sun's outstanding common stock. The price paid by Pam reflected the fact that...
-
Describe five forms of security over assets that could be required to minimise the risk exposure of lenders.
-
What is the interest payments option? How does it differ from the installment payments option? Why do some people postpone buying life insurance even when they need it? What are living benefits?...
-
Consider a software application you use regularly. What task(s) does it improve or enable? Suggest three ways the application could be improved. Would any of these improvements be considered an...
-
Jamie Lee and Ross need to ensure that the surviving spouse and the children will not have financial hardship in the event of a loss. Ross has $3000 salary. Using the easy method and considering Ross...
-
What is a lump-sum settlement? What kind of beneficiary would benefit the most from this option? What is an installment payments settlement? When would an insured individual choose this option? What...
-
What would you suggest to recover the project?
-
In Exercises 516, find the focus and directrix of the parabola with the given equation. Then graph the parabola. y 2 = 4x
-
Two years ago your corporate treasurer purchased for the firm a 20-year bond at its par value of $1,000. The coupon rate on this security is 8 percent. Interest payments are made to bondholders once...
-
The corporate treasurer of Aggieland Fireworks is considering the purchase of a BBB-rated bond that carries a 9 percent coupon. The BBB-rated security is taxable, and the firm is in the 46 percent...
-
The Cowboy Bottling Company will generate $12 million in credit sales next year. Collection of these credit sales will occur evenly over this period. The firm's employees work 270 days a year....
-
If a reporter were ordered by a court to produce notes from interviews with sources, but the reporter needed to protect her sources, what type of law may help her avoid having to testify?
-
The Cool Redistributing Company 1. With summer approaching, people are thinking about getting their lawns in shape. The Cool Redistributing Company (CRC) would like to maintain an 80% service level...
-
Match the type of partnership debt with its description. Drag and drop application. Recourse debt Recourse debt drop zone empty. Nonrecourse debt Nonrecourse debt drop zone empty. Debt that partners...
Study smarter with the SolutionInn App