FREE Trial

You stand to inherit 160458$ from a third great aunt twice removed on your uncle's side. You estimate that the

This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

Question:

You stand to inherit 160458$ from a third great aunt twice removed on your uncle's side. You estimate that the estate will settle in 170 days, whereupon you'll receive your inheritance. Unfortunately, the economy is currently experiencing a period of intense inflation and so you feel the appropriate discount rate is 9% per annum (p.a.) continuous. What do you believe the present value of your inheritance to be?


Expert Answer:

Answer rating: 100% (QA)

To calculate the present value of your 160 458 inheritance given View the full answer


answer-question
Related Book For  answer-question
Financial Accounting and Reporting a Global Perspective

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Posted Date: September 30, 2023 05:50:22
See More Questions

Students also viewed these finance questions

Q:
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
A:
phase 1 Doesn t everyone At fourteen I began working at Crazy Eddie as a stock boy in 1971 I started off by stealing cash and inflating insurance loss claims This was how the firm operated and I never......
Q:
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
A:
Answer 12 A A bond s coupon rate sometimes abbreviated simply to coupon isn t affected by its price B However the coupon rate influences the bond s price by influencing the bond s competitiveness and......
Q:
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...
A:
Ans a Uploaded through Photo Ans b For given time t 2 years The option will be in the money for any......
Q:
Jake Drewrey has total fixed monthly expenses of $ 1,340 and his gross monthly income is $3,875. What is his debt-to-income ratio? How does his ratio compare to the desired ratio?
A:
Debt to income ratio total fixed monthly expenses gross mon......
Q:
Assume you have just been hired as the management accountant in charge of providing your firms managers with product cost information. Identify the activities you might undertake for the following...
A:
a Research and development activities of a management accountant might include asking managers what......
Q:
Determine the force in each of the three cables needed to lift the tractor which has a mass of 8Mg. 3m 1.25 m 1.25 m
A:
Cartesian Vector Notation FAB FAB FAC FAC FAD FAD 21 1 2......
Q:
In order to create a culture of honesty and confidentiality, persons aware of fraudulent activity should be encouraged to tell only the CEO. (True/False)
A:
False Encouraging individuals to report fraudulent activity only to the CEO is not an......
Q:
Return to the simple example of regression results for the toy company presented in the chapter. Since the data come equally from Europe and Canada, does this represent a potential source of...
A:
Less than interval non metric independent variables can be used in......
Q:
Bolt Ltd is a prosperous sports regalia group in Gauteng. Currently, 96% of Bolt Ltd.'s annual sales are on credit and are expected to remain at this level in the future. Due to a large percentage of...
A:
To analyze the impact of the proposed change in credit policy for Bolt Ltd let s calculate the following 1 Change in gross profit Gross Profit Gross S......
Q:
The income statement for Sharp, Inc., for the month of May showed insurance expense of $250. The beginning and ending balance sheets for the month showed an increase of $50 in prepaid insurance....
A:
Adjustment to net income Increase in......
Q:
If the return on the risk-free asset is 2.50% (RF = 2.50%) and the return on the market is 6.4% (Rm = 6.4%), what is the beta of Bank of America, BAC, if it has had a return of 9.25%? You must show...
A:
The beta of a stock is a measure of its volatility or systematic risk compared to the overall market......
Q:
Lynn owns a tutoring center that supplies SAT and ACT test preparation service for high school students on an hourly basis. Consider the demand, marginal revenue, and marginal cost she faces, shown...
A:
a Yes Lynn s business has market power Market power is the ability of a firm to influence the price of its output Lynn has market power because she fa......
Q:
HBO and Showtime are both considering producing a new television show. They could produce either a romantic comedy or a historical drama. The profits are illustrated in the following payoff matrix:...
A:
a False If HBO chooses to produce a romantic comedy Showtime s best response would be to produce......
Q:
In October of 2004, British regulators were forced to suspend the license of a flu vaccine plant in Liverpool operated by the Chiron Corporation due to concerns over bacterial contamination. As a...
A:
a The profit maximizing price per dose and quantity produced are determined by the point where the marginal revenue MR curve intersects the marginal cost MC curve In this graph that point is at 26 per......
Q:
Read and reflect on the following article concerning leadership following the COVID-19 pandemic. Suggest specific steps that leaders could take to reduce the problems created by COVID-19. Geerts J....
A:
Steps that leaders could take to reduce the problems created by COVID 19 Here are a few suggestions......
Q:
Draw plausible Lewis structures for the following species; use expanded valence shells where necessary. (a) Cl 2 O; (b) PF 3 ; (c) CO 3 2 - ; (d) BrF 5 .
A:
Sure here are the plausible Lewis structures for the following species a Cl2O O Cl......
Q:
Consider the rational function f(z)= (2z+i) / (z^3 + z^2) Determine the location and multiplicity of the poles, and find the partial fraction de- composition of f.
A:
Click to View...
Q:
Prove that if Σ an is absolutely convergent, then a. an
A:
Summing the in......
Q:
The following list contains data or information that might be provided about a business. 1 List of managers and directors 2 Compensation packages of directors and managers 3 List of major competitors...
A:
Items Found in an annual report Location in the annual report Explanation of the importance of the item 8 Financial statements balance sheet income statement statement of cash flows Yes Financial stat......
Q:
CeWe Color Holding AG is a Germany-based photofinishing holding company. It provides retail customers with color prints and offers digital and Internet services. It divides its business activities...
A:
1 Goodwill Intangible assets Acquisition and production costs Balance on Jan 1 45 011 64 970 Change in group of consolidated companies 0 0 Currency tr......
Q:
You will find below in Exhibits 1 and 2 the balance sheets and income statements from eight different companies.
A:
We have followed the terminology used by each group We have also when it was possible respected the presentation of financial statements adopted by each group Although our sample is not statistically......
C/C++ Programmers Reference 3rd Edition - ISBN: 0072227222 - Free Book