what is the value of an investment opportunity that pays 6,000 at the end of each year for five years and pays 200,000 at the end of the five years as well? Assume that going rate of interest is two percent?
what is the value of an investment opportunity that pays 6,000 at the end of each...
5. What is the present value of $6,000 paid at the end of each of the next 62 years if the interest rate is 6% per year?
What would you pay for an investment that pays you $25000 at the end of each year for the next twenty years? Assume that the relevant interest rate for this type of investment is 12%.
1. what is the present value of $6,000 paid at the end of each of the next 58 years if the interest rate is 3% per year? 2. what is the present value of $15,000 A. received 14 yearf from today, interest rate 4%? B. received 28 years from today, interest rate 8%? C. received 7 years from today, interest rate 2%?
An investment pays you $20,000 at the end of this year, and $10,000 at the end of each of the four following years (i.e., of year 2, 3, 4, 5). What is the present value (PV) of this investment, given that the interest rate is 4% per year?
169. What is the future value at the end of year 13 of an investment that starts at $6,000 and grows by 7% per year for 13 years ($6,000 is invested at the end of year 1). The interest rate is 10% annual compounded annually.
Make a comparison between two investment choices, based on the information given below. Investment opportunity one: investing in stock market. Five years ago, SP500 stock index was 1312. Currently, it is 2618.97. What is the average annual rate of return of SP500 stock index in last five years? Investment opportunity two: Five years ago, someone used her $40,000 saving to make a down payment for a townhouse in RTP. The house is a three-bedroom townhouse and sold for $200,000 when...
Consider an investment that returns $10,000 a year for 5 years. That is at the end of each year, for five years, it pays $10,000. Assuming the alternative is an annual interest rate of 2%, what is the present value of this income stream?
LG2 4-12 Present value concept Answer each of the following questions. a. What single investment made today, earning 12% annual interest, will be worth $6,000 at the end of 6 years? b. What is the present value of $6,000 to be received at the end of 6 years if the discount rate is 12%? c. What is the most you would pay today for a promise to repay you $6,000 at the end of 6 years if your opportunity cost...
A 19-year annuity pays $1,300 per month, and payments are made at the end of each month. The interest rate is 11 percent compounded monthly for the first Five years and 10 percent compounded monthly thereafter. Required: What is the present value of the annuity? rev: 09_17_2012 $177,098.00 $125,088.20 $130,193.84 $1,531,692.22 $127,641.02
FOB Ltd. is considering an investment opportunity. It requires an initial investment of $4 million and is expected to receive after-tax cash flows of $2.2 million at the end otf year 1 and $2.8 million in year 2. This investment is expected to last for two years only. The cost of capital is 12 percent if it is all-equity financed. FOB intends to borrow $1 million at an annual cost of 8 percent. The loan must be repaid in two...