a. If the present value of $139 is $125, what is the discount factor? b. If that
Question:
a. If the present value of $139 is $125, what is the discount factor?
b. If that $139 is received in year 5, what is the interest rate?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
a PV C t DF t DF t 1...View the full answer
Answered By
Branice Buyengo Ajevi
I have been teaching for the last 5 years which has strengthened my interaction with students of different level.
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Principles of Corporate Finance
ISBN: 978-1260013900
13th edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen
Question Posted:
Students also viewed these Business questions
-
If the present value of the expected net cash flows from a machine, discounted at 10%, exceeds the amount to be invested, what can you say about the investments expected rate of return? What can you...
-
If the present value of $100 due eight years from now is $50, what is the present value of $100 due 16 years from now? Answer without using formula
-
If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent, whats the present value of the same annuity due?
-
My company is Target (TGT). In this project, you will find and discern the appropriate data to determine a realistic assessment of the weighted average cost of capital for a firm of your choosing....
-
You have learned that 8% of the students in your school are left-handed. Suppose you stop students at random and ask whether they are left-handed. a. What is the probability that the first...
-
From the following information, prepare the projected Trading and Profit and Loss Account for the next financial year ending December 31, 2015 and the projected Balance Sheet as on that date: Cost of...
-
Abbott Industries is a well-known supplier of pharmaceuticals worldwide. Founded by Dr. Wallace Abbott, the company was incorporated in 1900 after he had been developing and making pharmaceuticals...
-
At the beginning of 2016, the Redd Company had the following balances in its accounts: Cash ........ $ 6,900 Inventory ....... 15,000 Land ......... 7,000 Common stock .... 15,000 Retained earnings...
-
1. Consider 3 a. Draw a tape diagram that represents 3. I b. Use the tape diagram from part (a) to evaluate 3+
-
Prepare journal entries for the purchase of a grader for $375,000: Purchased from the General Operating Fund. Purchased from the Equipment Reserve Paid by the General Operating Cash Account but...
-
In the five years preceding the end of 2016, the price of Amazon shares rose by 34% a year. If you had invested $100 in Amazon at the beginning of this period, how much would you have by the end of...
-
You are contemplating membership in the St. Swithins and Ancient Golf Club. The annual membership fee for the coming year is $5,000, but you can make a single payment today of $12,750, which will...
-
The operations manager of a musical instrument distributor feels that demand for bass drums may be related to the number of television appearances by the popular rock group Green Shades during the...
-
Discuss any three of the technical skills needed for working with digital evidence collection.
-
Roller Company enters into a contract with Myers Company to purchase a new machine. Myers agrees to sell the machine for $125,000. What is one major difference that occurs between Roller and Myers...
-
When the potential misstatement magnitude related to a control failure is neither material nor significant and the likelihood of misstatement is reasonly possible or probable, how should the finding...
-
Click and drag on elements in order Demonstrate how to prepare a multiple-step income statement by ranking the items below in the order they w a merchandiser. Instructions Sales Cost of goods sold...
-
Jiang and Bao are married. Jiang is a U.S. citizen and Bao does not have citizenship yet. Assuming Jiang dies and there are no other relatives or children, how much would Bao need to put in a QDOT to...
-
The weights (lb) of the contents in cans of Diet Coke, as listed in Data Set 26 "Cola Weights and Volumes" in Appendix B. Use the data from the indicated exercise in this section. Use software (such...
-
Complete problem P10-21 using ASPE. Data from P10-21 Original cost ................................................................. $7,000,000 Accumulated depreciation...
-
You own 500 acres of timberland, with young timber worth $40,000 if logged now. This represents 1,000 cords of wood worth $40 per cord net of costs of cutting and hauling. A paper company has offered...
-
The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: These costs are expressed in real terms. a. Suppose...
-
Look again at your calculations for question 18 above. Suppose that technological change is expected to reduce costs by 10 percent per year. There will be new machines in year 1 that cost 10 percent...
-
A function is given. r(t) = 5 - t; t = 5, t = 10 (a) Determine the net change between the given values of the variable. (b) Determine the average rate of change between the given values of the...
-
Why are certain functional dependencies called trivial functional dependencies? Explain what is meant by repetition of information and inability to represent information. Explain why each of these...
-
When is a table in BCNF? Explain what this means and provide a specific example? What is a surrogate key, and when should you use one? Give specific examples ? What is normalization? Why is it...
Study smarter with the SolutionInn App