You have just received a windfall from an investment you made in a friend's business. She...

Question

Question

You have just received a windfall from an investment you made in a friends business. She will be paying you $10,000 a year,

Add a comment Improve this question Transcribed image text

Answer 1

✔ Recommended Answer

Answer #1

Year 1 10,000.00 year 2 10,000.00 Year 3 30,000.00 Cash flow Interest rate 3.50% Present value 10000/1.035 +10000/1.035^2 +30

Add a comment

Answer 2

Similar Homework Help Questions

You have just received a windfall from an investment you made in a friend's business. She...

You have just received a windfall from an investment you made in a friend's business. She will be paying you $12,230 at the end of this year, $24,460 at the end of next year, and $36,690 at the end of the year after that (three years from today). The interest rate is 3.6% 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...
You have just received a windfall from an investment you made in a friend's business. She...

You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 28,753 at the end of this year, $57,506 at the end of next year, and $86,259 at the end of the year after that (three years from today). The interest rate is 13.6% 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...
You have just received a windfall from an investment you made in a friend's business. She...

You have just received a windfall from an investment you made in a friend's business. She will be paying you $23,629 at the end of this year, $47,258 at the end of next year, and $70,887 at the end of the year after that (three years from today). The interest rate is 8.3%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...

You have just received a windfall from an investment you made in a friend's business. She...

You have just received a windfall from an investment you made in a friend's business. She will be paying you $24,615 at the end of this year, $49,230 at the end of next year, and $73,845 at the end of the year after that three years from today). The interest rate is 14.5% 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...
in a friend's business. She will be paying you $11,382 at the end of this year,...

in a friend's business. She will be paying you $11,382 at the end of this year, $22,764 at the end of next year, and $34,146 at the end of the year afer that You have just from today) The nterest rate is 3 4% 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)? a windfall from an investment you...
You have just won the initial School of Finance lottery! You have won $10,000 today, $20,000...

You have just won the initial School of Finance lottery! You have won $10,000 today, $20,000 four years from today, and $30,000 six years from today. As an alternative, you can receive your winnings as a 10-year annuity with the first payment received ten years from today. If you require a 6% return on your investment, how much must the annuity pay you each year for you to select that option?

You are thinking about investing$4,567in your friend's landscaping business. Even though you know the investment is...

You are thinking about investing$4,567in your friend's landscaping business. Even though you know the investment is risky and you can't be sure, you expect your investment to be worth$5,712 next year. You notice that the rate for one-year Treasury bills is 1%.However, you feel that other investments of equal risk to your friend's landscape business offer an expected return of8%for the year.The present value of the return is？ What should you do?
You are thinking about investing $5,160 in your friend's landscaping business. Even though you know the investment is r...

You are thinking about investing $5,160 in your friend's landscaping business. Even though you know the investment is risky and you can't be sure, you expect your investment to be worth $5,74 next year. You notice that the rate for one-year Treasury bills is 1%. However, you feel that other investments of equal risk to your friend's landscape business offer an expected return of 7% for the year. What should you do? The present value of the return is $_______(Round...
Solve using excel commands/formula A1 You have just received notification that you have won the $1...

Solve using excel commands/formula A1 You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 9 percent? 1,000,000 80 Future value Years Interest rate 9% 10 Complete the following analysis. Do not hard code values in your answers. Your...

You have just received notification that you have won the $2 million first prize in the...

You have just received notification that you have won the $2 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 80 years from now. points What is the present value of your windfall if the appropriate discount rate is BA percent? (Do not found Intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) eBook Present value Print References

You have just received a windfall from an investment you made in a friend's business. She...

Homework Answers