1. What is the present value of $100,000 to be received in 5 years with an...
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1. What is the present value of $100,000 to be received in 5 years with an interest rate of 8% annually? 2. What is the present value of $25,000 received in 10 years with an interest rate of 12% compounded semiannually? 3. What is the present value of $250,000 received in 15 years with an interest rate of 6% compounded quarterly? 4. What is the present value of $50,000 received in 4 years with an interest rate of 10% compounded monthly? 5. Peter, age 18, expects to receive an inheritance of $500,000 when he turns 30 years old. Assume the interest rate is 8% annually, what is the value of the inheritance today? 1. What is the present value of $100,000 to be received in 5 years with an interest rate of 8% annually? 2. What is the present value of $25,000 received in 10 years with an interest rate of 12% compounded semiannually? 3. What is the present value of $250,000 received in 15 years with an interest rate of 6% compounded quarterly? 4. What is the present value of $50,000 received in 4 years with an interest rate of 10% compounded monthly? 5. Peter, age 18, expects to receive an inheritance of $500,000 when he turns 30 years old. Assume the interest rate is 8% annually, what is the value of the inheritance today?
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To calculate the present value of the future cash flows in each scenario we can use the present valu... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
Posted Date:
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