What is the current economic value of an inheritance that will pay $2000 to the beneficiary at the beginning of every three months for 20 years, starting when the beneficiary reaches 20 years of age, 4 1/2 years from now? Assume that money is worth 6% compounded monthly. (Round to the nearest dollar.)
Students also viewed these Corporate Finance questions
Under the headline “Local Theatre Project Receives $1 Million!” a newspaper article explained...... ... a newspaper article explained thatthe Theatre Project had just received the first of ten annual grants of $100,000 fromthe Hinton Foundation. Whatisthecurrenteconomicvalueof all of...View Answer
A bond pays $1000 interest atthe end ofevery year forthe next 30 years. Whatisthecurrenteconomicvalueof each ofthe 15th and 30th payments if we discount the payments at: a. 5% compounded semiannually? b. 8% compounded...View Answer
The Toronto Raptors announce the signing of one of their players to a “seven-year deal worth...... ... $600,000 atthe end of each month forthe subsequent four years. How do the Raptors get the $43.2 million figure? Tothenearest $1000, whatisthecurrenteconomicvalueofthe deal if money...View Answer
A college can purchase a telephone system for $30,000 or lease a system for five yearsfor a...... ... atthe end ofthe lease period for $3000. a. Should the college lease or buy the system if it can borrow funds at 10% compounded quarterly? b. Whatisthecurrenteconomicvalueofthe savings...View Answer
Mrs. Sippy (age 65) is about to begin receiving a CPP retirement pension of $11,000 per year. This...... ... will be paid in a single year-end payment, the CPI will rise 3% per year, and moneyisworth6%compounded annually. Whatisthecurrenteconomicvalue of: a. 20yearsof pension benefits?...View Answer
OSHA does not require a hotel to develop a written Emergency Action and Fire Prevention Plan if...... d. the hotel is part ofa chain that has submitted a master Emergency Action and Fire Prevention Plan.View Answer
A dc motor develops 55 N-m of torque at a speed of 600 rad/s when 12 volts are applied. It stalls...... ... of the armature are7kg-m 2 and 3N-m-s/rad, respectively, find the transfer function, G(s) = ? L (s)/E a (s), of this motor if it drives an inertia load of 105 kg-m 2 through a gear train, as...View Answer
On July 1, 2018, Nakhooda Limited received an 18-month loan for $40,000 from a bank at 6% and with...... ... at Nakhooda\'s year end, December 31, 2018 and 2019, assuming adjusting entries are recorded annually and interest is due at maturity (c) Repayment of the interest and the loan on January 1,...View Answer
RCC is a tier 1 Automotive Supplier. They are choosing between two 3-D printing machines, Aand B, of comparable specifications to help reduce the time needed in building prototypes for new parts and subassembliesView Answer
In Cantor\'s diagonalization we construct a number x between 0 and 1 that\'s not on the supposed...... ... real numbers between 0 and 1 aren\'t countable. Suppose we try to use the same argument to show that the rational numbers between 0 and 1 aren\'t countable? (Of course we know that they are....)...View Answer
Discuss COVID-19 will impact the manufacturing overhead and the total job costs of manufacturing plants. Cite a real-world example.View Answer
Describe the difference between consumer goods and business goods. Be able to distinguish between the two types.View Answer
The sugar content of the syrup in canned peaches is normally distributed. A random sample of n = 10 cans yields a sample standard deviation of s = 4.8 milligrams. Find a 95% two-sided confidence interval for .View Answer
An article in the financial press stated, “More than half of software maker Comserve’s net worth is ina pile of tapes and ring-bound books. That raises some accountants’ eyebrows.” What is the profession’s position regarding the incurrence of costs for computer software that will be sold?View Answer
Assume that Seminole, Inc., considers issuing a Singapore dollar–denominated bond at its present...... ... are tobe paid:Exchange Rate of End of Year Singapore Dollar1 .......... $.522 .......... .563 .......... .584 .......... .53Determine the expected annual cost of financing with Singapore...View Answer
Back Country manufactures backpacks. Its plant records include the following materials- related...... ... machine lubricating oil, on account .......... 1,200 Materials requisitions: Canvas .................................................................. 59,000 Sewing machine lubricating oil...View Answer
How does the existence of derivatives markets enhance an economy’s ability to grow?View Answer