What is the present value of $1000 paid at the end of each of the next 100

Question:

What is the present value of $1000 paid at the end of each of the next 100 years if the interest rate is 7% per year?

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: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

See More Books

Question Posted: Jan 14, 2012 02:21 AM

See More Questions

What is the present value of a. $7,900 in 10 years at 11 percent? b. $16,600 in 5 years at 9 percent? c. $26,000 in 14 years at 6 percent?
What is the present value of $800 to be received at the end of one year if it must provide a return of 8%? What is the present value of $900 to be received at the end of one year? $1,500? What can...
What is the present value of $1,000 to be received at the end of one year if it must provide a return of 5%? What is the present value of $1,000 to be received at the end of two years? Three years?...
A person who is 6 feet and 3 inches tall and weighs 185 pound force (lbf) is driving a car at a speed of 65 miles per hour over a distance of 25 miles between two cities. The outside air temperature...
A manufacturer of potting soil has the following financial data: Pounds produced and sold.....................................................24,800...
The following data were taken from the statement of financial position accounts of Murless SA on December 31, 2022. Current Assets...
What is a NDI?
Alert Companys shareholders equity prior to any of the following events is as follows: Preferred stock, 8%, ................$100,000 $100 par Common stock, $10 par .......... 150,000 Additional...
Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Golf Guard Fishing Guard...
Mr B aged 52 years, has earned rupees 75,00,000 out of his business. His ex-wife gifted him a car worth rupees 8 lakh. He spent a total of rupees 20 lakh during a family trip. He won a lottery of 16...
The British government has a consol bond outstanding paying 100 per year forever. Assume the current interest rate is 4% per year. a. What is the value of the bond immediately after a payment is...
Your grandmother has been putting $1000 into a savings account on every birthday since your first (that is, when you turned one). The account pays an interest rate of 3%. How much money will be in...
Assume that on December 31, 20X0, Colorado Woolens issued $10 million of 10-year, 10% debentures. Proceeds were $11,359,000; therefore, the market rate of interest was 8%. 1. By using the balance...
Nitrogen gas is reversibly compressed from $70^{\circ} \mathrm{F}$ and 14.7 psia to one-fourth of its original volume by (1) a $T=$ const process or (2) a $p=$ const process followed by a...
An incompressible fluid is flowing in a rectangular duct whose dimensions are 2 units in the $Y$-direction and 1 unit in the $Z$-direction. The velocity in the $X$-direction is given by \(u=3...
Write the equation used to relate the material derivative of any mass-dependent property to the properties inside, and crossing the boundaries of, a control volume. State in words what the integrals...
Technological innovations shift the production possibility curve. Look at graph you sketched for Exercise 12.13 Which types of technologies should a country promote? Should clean technologies be...
There is three-dimensional flow of an incompressible fluid in a duct of radius $R$. The velocity distribution at any section is hemispherical, with the maximum velocity $U_{m}$ at the center and...
Who are typically involved in conducting system testing in the implementation phase?
1. Which of the four major types of information systems do you think is the most valuable to an organization? 2. How do you critically associate the ideas of business agility and business efficiency...
Suppose that 50.0 g of water at 20.0 8C is mixed with 65.0 g of water at 50.0C at constant atmospheric pressure in a thermally insulated vessel. Calculate S and S tot for the process.
EOQ Derivation prove that when carrying costs and restocking costs are as described in the chapter, the EOQ must occur at the point where the carrying costs and restocking costs are equal.
EOQ Derivation prove that when carrying costs and restocking costs are as described in the chapter, the EOQ must occur at the point where the carrying costs and restocking costs are equal.
Credit Policy Evaluation the Dilana Corporation is considering a change in its cash-only policy. The new terms would be not one period. Based on the following information, determine if Dilana should...
D.L. Ko and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has led Mr. Ko, the president, to believe...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and...
Accounts receivable 37,100 Inventory 68,900 Equipment 350,860 Accumulated depreciation, equipment 159,000 Accounts payable 127,200 Bank loan payable 74,200 Deferred revenue 23,320 Common shares...

What is the present value of $1000 paid at the end of each of the next 100

Question:

Step by Step Answer:

Plan Draw the timeline of the cash flows for the investment opportunity Compute the NPV of the in...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions