Question: What would be the PV ( Present Value ) of $ 5 , 0 0 0 in 5 years if the discount rate is 0

What would be the PV (Present Value) of $5,000 in 5 years if the discount rate is 0%. Demonstrate you knowledge of this concept by coming up with your answer using the formula for this value.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Develop three people outcomes as well as related substrategies and tactics to improve your organizations focus on alignment. Complete the tactical map template. Prepare an argument in support of your...

Q:

1. A company is considering spending $202,000 at Time 0 to test a new product. Depending on the test results, the company may decide to spend $1,786,000 at Time 1 to start production of the product....

Q:

On January 1, 2021, Worcester Construction leased International Harvester equipment from Newton LeaseCorp. Newton LeaseCorp purchased the equipment from Wellesley Harvester at a cost of $1,008,054....

Q:

1) Calculate the following future value: a. PV = $50, r = an annual interest rate of ((your-5%) + 2%), and n = 8 years. FV: ______ b. PV = $75, r = an annual interest rate of (your-5%), and n = 3...

Q:

The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $47,000 and have no residual value. Management expects the equipment to...

Q:

Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: Machine A Machine B $107,600 $155,600 8 years 8 years Investment Estimated life...

Q:

Your arandfather would the to share eome of his fortune w th you. He offers to give you monby unber one of the following scenarios (you get to choose) 1. 57,250 ofr year at the end of esch of the...

Q:

The question is in the pictures 7. S, Inc. plans to purchase equipment with a cost of $148,000. The company expects annual net cash inflows from the equipment of $34,200. The equipment has an...

Q:

Star City is considering an investment in the community center that is expected to return the following cash flows: Use Exhibit A8 Year Net Cash Flow 36,000 66,000 96,000 96,000 116,000 4 This...

Q:

Time Value of Money Case Study: ABC Wealth Advisors As a newly recruited MBA in a financial consultancy firm, in order to test your knowledge of Time Value of Money , you have been given the task of...

Q:

Could you help me with the long-term discounting problem? Could you also show me the computations step by step? Exercise 1: Long Term Discounting (30 points) Assume a project will result in benefits...

Q:

Company S shipped goods costing $10,000 to Company C on consignment. The sales agreement states that Company C has 90 days to either sell the goods and pay Company S $16,000 for them or to return the...

Q:

In the circuit shown in Fig, R is a variable resistor whose value can range from 0 to , and a and b are the terminals of a battery having an emf E = 15.0 V and an internal resistance of 4.00 . The...

Q:

A business entity that exists for the purpose of purchasing mortgages and securitizing them is: A . a mortgage finance company B . a special purpose vehicie C . a mortgage bond trustee Answer: B

Q:

Can you elucidate the role of molecular chaperones and protein quality control systems in maintaining the integrity and homeostasis of the cytoplasm, particularly under conditions of cellular stress...