Question: please solve these 3 problems 03 PP) John is buying a security that will pay $100 each year for the next 8 years. He is


03 PP) John is buying a security that will pay $100 each year for the next 8 years. He is thinking about selling the security in 5 years. What price does John think he can sell the security for, if he believes the interest rate will be 6% in 5 years? You can respond once $267 $421 $564 $621 06) You believe you will spend $100,000 a year for 15 years once you retire in 20 years. If the interest rate is 12.50% per year. How much do you need to save for the next 20 years to each you retirement goals? You can respond once $8,686 $663,289 $91,597 $50,830 05 PP) A factory costs $400. You forecast that it will produce cash inflows of $120 in year 1,$180 in year 2 , and $300 in year 3 . The discount rate is 12%. What is the value of the factory You can respond once $464,17 652.13 600 427.07
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
