Find out the present value of perpetuity if the cash inflow increases from $2,000 to $2,050...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Find out the present value of perpetuity if the cash inflow increases from $2,000 to $2,050 in next year and $2,124, $2,209 in 3rd and 4th year respectively. The discount rate is 9% per annum. Find out the present value of perpetuity if the cash inflow increases from $2,000 to $2,050 in next year and $2,124, $2,209 in 3rd and 4th year respectively. The discount rate is 9% per annum.
Expert Answer:
Answer rating: 100% (QA)
To find the present value of a perpetuity with increasing cash inflows we can use the formu... View the full answer
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
Posted Date:
Students also viewed these accounting questions
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
1. Based on the forecasts above, use the spreadsheet below to construct a pro forma income statement for Idexo over the next five years. What is the annual growth rate of the firm's net income over...
-
Please do the full calculation through the financial calculator formula as per the Australian standards Question 1 (Total marks for this question = 6 marks) Suppose you take out a loan of $10,000,...
-
Use a calculator to evaluate an ordinary annuity formula \[A=m\left[\frac{\left(1+\frac{r}{n}ight)^{n t}-1}{\frac{r}{n}}ight]\] for \(m, r\), and \(t\) (respectively) given in Problems 7-22. Assume...
-
1. A six-sided die has the number 1 painted on three sides and the number 2 painted on the other three sides. (a) What is the probability of a 1 coming up when the die is thrown? (b) What is the...
-
What does planning mean in the context of budgeting objectives?
-
Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: deluxe and basic. Required 1. Compute a single plantwide...
-
Twyla Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows. For purposes of simplicity, the firm averages total...
-
2. 2. A 20 kg child climbs to the top of a slide that is 3 m above the ground level. She starts from rest and slides down the incline. a. Define and model the energy of the system with Energy Bar...
-
The CitruSun Corporation ships frozen orange juice concentrate from processing plants in Eustis and Clermont to distributors in Miami, Orlando, and Tallahassee. Each plant can produce 20 tons of...
-
Complete the following table: Base Year 2014 2016 Product Quantity Price Expenditures Price Expenditures Price Expenditures Denim Jeans Pizzas $120 $60 $60 240 $120 $95 $95 20 20 12 18 360 16 320...
-
To maximize the expected profit from the potential sale, what posted price would you commit to to maximize the expected value from the potential sale of the machine?
-
The figure below represents a backfill behind a smooth vertical retaining wall. Estimate the magnitude and line of action of the lateral active force per meter length of the wall. What would be the...
-
You are the sole shareholder of an S corporation that earns 150,000 of net income. You then decide to pay yourself a salary from the S corporation in the amount of 150,000, reducing the S corporation...
-
Suppose that the demand for classical music concert tickets is negatively sloping and the supply of classical music concert tickets is positively sloping.Classical music lovers persuade Congress to...
-
Which do you consider to be the most important of the 8 millennium development goals and why? Have the MDGs achieved their goals so far? Why or why not?
-
You wish to test the following claim (Ha) at a significance level of a = 0.05. Ho:p = 0.13 Ha:p 0.13 You obtain a sample of size n = 649 in which there are 72 successful observations. For this test,...
-
TRUE-FALSE QUESTIONS 1. In terms of preliminary analytical procedures, assume that the company has introduced a new product with a low price point and significant customer demand. The auditor would...
-
Starlight Glassware Company has the following standards and flexible-budget data. Standard variable-overhead rate........................$18.00 per direct-labor hour Standard quantity of direct...
-
Define the following terms: total revenue, marginal revenue, demand curve, price elasticity, and cross-elasticity.
-
Stereo Technology, Inc. manufactures printed circuits for stereo amplifiers. A common product defect is a drift caused by failure to maintain precise heat levels during the production process....
-
Haydn is a postgraduate MSc Management and Entrepreneurship student and as part of his studies he needs to complete a research project. Haydn has set his sights on studying a concept called 'entre-...
-
You have decided to undertake a project and have defined the main research question as What are the opinions of consumers on a 10 per cent reduction in weight, with the price remaining the same, of...
-
What are the characteristics of access and why is it important to differentiate between them?
Study smarter with the SolutionInn App