Consider a stream of 30-year continuous cash flows with a payment rate of $500t during year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider a stream of 30-year continuous cash flows with a payment rate of $500t during year t. For instance, the payment rate during year 4 is $2000. Calculate its present value at time () given an effective annual rate of 4%. ? Consider a stream of 30-year continuous cash flows with a payment rate of $500t during year t. For instance, the payment rate during year 4 is $2000. Calculate its present value at time () given an effective annual rate of 4%. ?
Expert Answer:
Answer rating: 100% (QA)
o calculate the present value of the cash flows we need to use the present value formula for co... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
Students also viewed these accounting questions
-
Show that the following reaction are forbidden by the conservation of charge or baryon number laws: a) 10 - p + e- + ve + n b) no - + + c) - + +'+ et +e
-
1. To use the present value formula PV0 = C/r at time zero, which of the following is correct? There are a finite number of cash flows in the future There are at least one billion pieces of cash...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
9.3.1 Which of the following statements are true concerning the mean of the differences between two dependent samples (matched pairs)? Select all that apply. A. The requirement of a simple random...
-
Calculate the heat transfer coefficient for film boiling of water on a 1.3 cm horizontal tube if the tube temperature is 550?C and the system is placed under pressure of 1/2 atm.GIVENFilm boiling of...
-
In what way does the fair value model for investment property differ from the revaluation model for property, plant, and equipment?
-
The fugacity co-efficient of a substance is the ratio of its fugacity to the (a) Mole fraction (c) Pressure (b) Activity (d) Activity co-efficient.
-
How does GASB reporting of uncollectible accounts for governmental funds and proprietary funds differ from the reporting of uncollectible accounts under FASB standards?
-
The following data was compiled from the financial records for the month of May Standard Actual, Direct Materials Price $7.25 $7.46 Direct Materials Quantity 8,000 7,895 Direct Labor Rate $38.00...
-
1. If Bozena participates and the 401(k) earns 10 percent annually, how much will she have accumulated in 45 years (to age 67) even if her salary does not change? 2. If she does not participate and...
-
1) Identify the following elements: Support Point (P.A), Power (P), Resistance (R), Power arm, and Resistance arm; for the machine that we will present to you below, and indicate what genre (first...
-
How do the lakers, or any other sports team use the BLIP model? 1b. What would you do differently than the organization you selected, in any of the stages of the BLIP Model?...
-
You have been working for your brother (owner of a Down Under Sandwich Shoppe). The franchise company is now offering you a chance to franchise one of their new Big Bird Stick-e-Chicken shops (which...
-
Please give a real life example of the following cases, Exceptions to the General Rule(When the Limitation Period May be Extended) 1.Agreement of the parties to extend. 2. Part payment of debt or...
-
Grow Well (Horticulture Systems) Ltd would like six weeks to fit out the premises before the lease commences and would like a three-year lease with two rights of renewal. The landlord is happy to...
-
When you pay cash for toothpaste at the local corner store and do not receive a receipt from the cashier, the transaction is not legally binding.?
-
Use the definition of Ax to write the matrix equation as a vector equation -2 3 3 6 5 0 6-7 5 5 5 45 25 The matrix equation written as a vector equation is 4
-
Which of the following raises the credibility of areport? Which of the following raises the credibility of a report? Multiple Choice avoiding predictions avoiding the use of cause-effect statements...
-
Consider my tastes for consumption and leisure. A: Begin by assuming that my tastes over consumption and leisure satisfy our 5 basic assumptions. (a) On a graph with leisure hours per week on the...
-
Every Thanksgiving, my wife and I debate about how we should prepare the turkey we will serve (and will then have left over). My wife likes preparing turkeys the conventional way roasted in the oven...
-
We have illustrated in several settings the role of actuarially fair insurance contracts (b, p) (where b is the insurance benefit in the bad state and p is the insurance premium that has to be paid...
-
A stock price is governed by \[\frac{\mathrm{d} S}{S}=\mu \mathrm{d} t+\sigma \mathrm{d} z\] where \(z\) is a standardized Wiener process. Interest is constant at rate \(r\). An investor wishes to...
-
At the beginning of April one year, the silver forward prices (in cents per troy ounce) were as follows: The carrying cost of silver is about 20 cents per ounce per year, paid at the beginning of...
-
Suppose that a forward contract on an asset is written at time zero and there are \(M\) periods until delivery. Suppose that the proportional carrying charge in period \(k\) is \(q S(k)\), where...
Study smarter with the SolutionInn App