Time Value of Money Based on the questions, write down the formula and specify numbers in the
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Time Value of Money Based on the questions, write down the formula and specify numbers in the formula. assuming the interest rate is 9 percent.
1.1 What is the present value of $25,000 to be received in five years?
1.2 What will be the value in nine years of $12,000 invested today?
1.3 An investment costs $1,500,000 today and promises a single payment of $15,000,000 in 23 years. What is the IRR on this investment?
1.4 What is the present value of $5,000 to be received at the end of each the next 15 years if the discount rate is 10%?
1.5 A share of preferred stock promises an annual dividend of $15 forever and sells for $280. What is IRR?
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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