Question: You will receive $ 5 0 0 in 1 8 years. The discount rate is 1 2 % per year. What is the present value

You will receive $500 in 18 years. The discount rate is 12% per year. What is the present value of that payment? Round your answer to the nearest 2 decimal places and do not include a dollar sign. For instance 55.31

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:

Schmears Inc. is a catalog retailer of men's shirts. Daily demand for a particular SKU (style and size) is Poisson with mean 1.5. It takes three days for a replen- ishment order to arrive from...

Q:

Problem II - Textbook Exercise 16.6.1 (2 points) Consider the game in Table 16.6.2, "A Variation of the Price Cutting Game" and consider a strategy in which firm 1 prices high in odd numbered...

Q:

The Caribou Pipeline Company projects a pattern of inflows from the investment shown in the following table. The inflows are spread over time to reflect delayed benefits. Each year is independent of...

Q:

Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options:() pay full cash today, (2) pay one- half down and the remaining one-half plus 10% in one year, or (3)...

Q:

15. Find the NPV for the following: Show your work Sakoulgte NPV 4.00% 200.00 Interest Rate Initial Investment Net Cash in Flows Yr1 Yr. 2 Yr3 60.00 80.00 P0.00 NPV 16. What is a Triple Net Lease? a...

Q:

for toppy Maps B. Help You received partial credit in the previous attempt View previous attempt Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1)...

Q:

How much would you have to invest today to receive the following? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator...

Q:

7.Lease Accounting and Pro Forma Analysis. When answering the following questions regarding Whole Foods Market, Inc. (WFM), use WFM's definition of operating income and assume the following for the...

Q:

Hi this is homework of financial management.Please give me an excellent answer Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work...

Q:

Derek Isabel Meredith George Contract Terms Contract Payment Amount Date $550,000 2 years 590,000 3 years 475,000 Today 450,000 1 year Required: 1-a. Assuming an annual discount rate of 8%, calculate...

Q:

1. An increase in the discount rate: A) will increase the present value of future cash flows. B) will have no effect on net present value. C) will reduce the present value of future cash flows. D) is...

Q:

A person is suffering from very low blood pressure and passing no urine. Why? What suggestion would you offer for the removal of waste products from the blood in such a situation and explain?

Q:

Dovetail Industries needs to save $1,000,000 for new production machinery that it expects will be needed six years from today. If money can earn 8.35% compounded monthly, how much money should...

Q:

B 2 8 Company is considering the purchare of eoulpment that would allow the compacy lis hdd a newe product fo is line. The Note: Use appropiate fectorlal from the tables provided. Sales of mex...

Q:

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...

Q:

13. last word Explain the differences among microcredit, conditional cash transfers, and unconditional cash transfers. Then explain how effective each policy has been.

Q:

10-2. What is typically covered in the work plan for a report? [LO-1]

Q:

10-1. What are the three basic categories of reports? [LO-1]