The 2-year discount factor is .92. What is the present value of $1 to be received in

Question:

The 2-year discount factor is .92. What is the present value of $1 to be received in year 2? What is the present value of $2,000?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-1259722615

9th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

See More Books

Question Posted: Jun 24, 2017 08:56 AM

See More Questions

At an interest rate of 12%, the six-year discount factor is 507 How many dollars is $. 507 worth In six years if invested at 12%?
a. If the one-year discount factor is .88, what is the one-year interest rate? b. If the two-year interest rate is 10.5 percent, what is the two-year discount factor? c. Given these one- and two-year...
a. If the one-year discount factor is .905, what is the one-year interest rate? b. If the two-year interest rate is 10.5%, what is the two-year discount factor? c. Given these one- and two-year...
The Sales Discounts account is a contra account to which of the following accounts? Cost of Goods Sold Sales Returns and Allowances Purchases Discounts Sales Revenue
Design a model predictive controller for the process,Select a value of N based on 95% completion of the step response and ?t = 2. Simulate the closed1oop response for a set-point change using the...
On July 31, 2024, Ping Company purchased 90% of Santos Companys common stock for $2,010,000 cash. Immediately after the acquisition, the two companies balance sheets were as follows: Santos Company...
The distributed loading is supported by the three suspender bars. AB and EF are made of aluminum and CD is made of steel. If each bar has a cross-sectional area of 450 mm 2 , determine the maximum...
Pletcher Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the master budget for the first 2 quarters of 2017. All that remains in...
Conduct your own research and find an article/video/website about a drone application that is new (appears to have been developed within the last year). Briefly describe the application and how...
On January 1, 2020, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration. ChipTechs fair value was allocated among its...
A factory costs $400,000. You forecast that it will produce cash inflows of $120,000 in year 1, $180,000 in year 2, and $300,000 in year 3. The discount rate is 12%. a. What is the value of the...
British government 4% perpetuities pay 4 interest each year forever. Another bond, 2.5% perpetuities, pays 2.50 a year forever. a. What is the value of 4% perpetuities if the long-term interest rate...
Most business owners agree that keeping up with the pace of technological change is a challenging task. Imagine you are the owner of a new business and must decide what technology would best suit...
Alice and Bob formed Aztec, Inc. on February 1 to manufacture and market a product they recently patented. Cash to acquire equipment and working capital to begin its operations was obtained by...
Suppose the stock market consists of only two risky stocks, A and B, which have the following characteristics: Stock A B Expected Return 12% 3% Standard Deviation 21.8% 5.0% Suppose that in addition...
Given data below answer the question. DURABLE GOODS SERVICES $2,000 $4,000 BUSINESS PURCHASEES OF CAPITAL $ 200 FIXED INVESTMENT $ 600 EXPORTS IMPORTS $ 600 $ 800 NONDURABLE GOODS INVENTORY...
You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below. Asset Investment Beta Stock A $ 137,000 .82...
Define Kirchoff's law and potential dividers. Peter approached David, a chartered accountant, and asked his advice as to the financial position and profitability of a business that he was...
According to Keplers third law, the time needed for a planet to complete an orbit around the sun a. Is the same for all the planets b. Depends on the planets size c. Depends on the planets distance...
Suppose Green Network Energy needs to raise money to finance its new manufacturing facility, but their CFO does not think the company is financially capable of making the periodic interest payments...
Can cash flow from operations be positive if net income is negative? Can it be negative if net income is positive? Give examples.
During the last year of operations, Theta's accounts receivable increased by $10,000, accounts payable increased by $5,000, and inventories decreased by $2,000. What is the total impact of these...
Balance sheet items are usually entered in order of declining liquidity. Place each of the terms below in the appropriate place in the balance sheet. Accounts payable ........................Total...
Create a segmentation, selection and focus model that allows the PUMA company in Mexico to determine its customer, where to find it and how to generate value given its model. 7) Selection of the most...
Determine if the following values are zeroes polynomial. 4 3 f(x) = x + x-18x - 16x + 32 x+1, +2, +4 -
Cali Windows is a small company that installs windows. Its cost structure is as follows: (Click the icon to view the cost structure.) Calculate (a) the breakeven point in units and revenues and (b)...

The 2-year discount factor is .92. What is the present value of $1 to be received in

Question:

Step by Step Answer:

All input values are shown in yellow Only these values need changed to review algo versions Answers ...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions