You have just received a windfall from an investment you made in a friends business. She will
Question:
You have just received a windfall from an investment you made in a friend’s business. She will be paying you $10,000 at the end of this year, $20,000 at the end of the following year, and $30,000 at the end of the year after that (three years from today). The interest rate is 3.5% per year.
a. What is the present value of your windfall?
b. What is the future value of your windfall in three years (on the date of the last payment)?
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 44% (9 reviews)
Plan It is wonderful that you will receive this windfall from your investment in your friends busine...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
The On the Job example at the end of this chapter provides a brief description of many training methods used in management development. To understand those methods better, the class breaks into teams...
-
The directed reading at the end of this chapter describes four tools for crises in projects. Might any of these be useful to Iceland in their planning?
-
You have just received a bequest of $2,000 from an aunt and you have decided to invest the money in shares of Electronic Recycling Inc., a company that is listed on the Toronto Stock Exchange....
-
Problem 5. A RRP Polar Robot is given by 1 (a) If the homogeneous transformation matrix is: T- Joint link length 11-0.5m, 12-0.25m, 0, 0, r (b) Find the Jacobian Matrix (c) Determine interior...
-
Crawford Corporation acquires Nashville, Inc. The parent pays more for it than the fair value of the subsidiary's net assets. On the acquisition date, Crawford has equipment with a book value of...
-
By comparing the year-end balance sheets for Beige Corp. in 2020 and 2021, you find that from 2020 to 2021: accounts receivable increased by $3,000,000, inventory decreased by $2,000,000, accounts...
-
Using micromechanics and the Tsai-Hill criterion, set up the equation for the averaged isotropic tensile strength for a randomly oriented short-fiber composite. The equation should be in terms of...
-
In working out his principle, Pascal showed dramatically how force can be multiplied with fluid pressure. He placed a long, thin tube of radius r = 0.30 cm vertically into a wine barrel of radius R =...
-
A 2 . 5 kg model car is traversing a loop track with a radous of 1 . 1 m . What speed must the car have at the bottom of the loop to just go past the top of the loop?
-
Shep Companys records show the following information for the current year. Determine net income (loss) for each of the following separate situations. a. Additional common stock of $3,000 was issued...
-
You plan to deposit $500 in a bank account now and $300 at the end of one year. If the account earns 3% interest per year, what will the balance be in the account right after you make the second...
-
Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? b. What is the future value in three years of...
-
Woods Company incurred an activity cost of $55,000 for inspecting 5,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit....
-
Answer question 43 again when r = .10. How does a change in the risk-free rate of interest affect the value of the call option? Question 43 Use the BlackScholes option pricing formula to compute the...
-
Use the BlackScholes option pricing formula to compute the value of a call option, given the following information: S = $55 X = $50 r = .065 t = .5 0.25 Price of stock Exercise price Risk-free...
-
An investment analyst calculates that the mean price of gold is $392 per ounce with a standard deviation of $12. Assume the price of gold follows a normal distribution. Compute the probability that...
-
A quality control manager has found that the mean number of ounces of cereal in a 16-oz box is 16 oz with a standard deviation of 2 oz. Calculate the probability that a randomly selected box of...
-
The number of phone calls that reach 1800 numbers in a certain time period follows a Poisson distribution. Assume that there are about 15,000 potential callers. Each caller has a probability of 0.001...
-
Residents of Lake Caliopa, Minnesota, began noticing an unusually high number of lung ailments among the local population. Several concerned citizens pooled their resources and commissioned a study...
-
Prepare a stock card using the following information A company is registered for GST which it pays quarterly, assume GST was last paid on the 30th of June 2019. It uses weighted average cost...
-
Write a balanced chemical equation for the formation reaction of (a) NH 3 (g); (b) H 2 O(g); (c) CO(g); (d) NO 2 (g). For each reaction, determine H, S, and G from data in Appendix 2A. 2A...
-
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value): a. Compute the yield to maturity for each bond. b. Plot the zero-coupon...
-
Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment?
-
Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?
-
Two point charges with values of 4.0 microcoulombs and 6.0 microcoulombs, respectively. One of them was placed at the coordinate center and the other at the point (0.5 m,0 m) in the x,y plane. Find...
-
A 300 L tank full of air needs to be drawn to vacuum using a vacuum pump. The air can be considered an ideal gas. The molecular weight of air is 29 g/mol. Initially the tank is at atmospheric...
-
You DRY STOP BUS DEEP PUDDLE V= 1.71 M/S 6 METERS VERY WET DRY 10.4 METERS V=2.4 M/S 1. Note the information on the diagram. You must be on time for a very important office presentation that will...
Study smarter with the SolutionInn App