Question

Your company will generate $68,000 in annual revenue each year for the next Your company will generate $68,000 in annual reve
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Calculate the present value as follows:

$68,000.00 A 354 Particulars 355 Annual savings 356 Number of years 357 Interest rate 358 359 Present value 8.50% $348,058.92

Formulas:

B А 354 Particulars 355 Annual savings 68000 356 Number of years 7 357 Interest rate 0.085 358 359 Present value =PV(B357,B35

Add a comment
Know the answer?
Add Answer to:
Your company will generate $68,000 in annual revenue each year for the next Your company will...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • value: 1.00 points Your company will generate $71,000 in annual revenue each year for the next...

    value: 1.00 points Your company will generate $71,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.50 percent, what is the present value of the savings? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Present value References eBook & Resources ulit

  • А в c D E F G H E An investment offers $6,100 per year for...

    А в c D E F G H E An investment offers $6,100 per year for 15 years, with the first payment occurring one year from now. If the required return is 6 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever? 6,100 Payment per year # of years Required rate of return # of years # of years Complete the following analysis. Do not...

  • 8. Your company will generate $73,000 in annual savings each year for the next eight years...

    8. Your company will generate $73,000 in annual savings each year for the next eight years from a new information data base. If the appropriate discount rate is 8.5%, what is the present value of the savings?

  • 8. You have just struck oil in the middle of your hay field. An oil company...

    8. You have just struck oil in the middle of your hay field. An oil company has offered to pay you a perpetual annuity of $12,500 per year for the rights. What is the value of the offer, assuming a 10% discount rate? The value with the discount rate would be $125,000. 9. What would be the value of the annuity in question 8 if the company increased the payment by 3% each year? 11. Sam Crosby is a professional...

  • On January 1, 2016, you deposited $5,700 in a savings account. The account will earn 9...

    On January 1, 2016, you deposited $5,700 in a savings account. The account will earn 9 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 3 years? (Future Value of $1. Present Value of $1. Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answers...

  • Your business is expected to generate an $88,888 profit at the end of year 1, and...

    Your business is expected to generate an $88,888 profit at the end of year 1, and profit will increase by 8% per year through year 8. If the annual interest is 8%, what is the present value of your profits over the next 8 years?

  • You have the opportunity to invest in several annuities. Which of the following 10-year annuities has...

    You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $500 at the beginning of every six months...

  • 1. Fred was on the seven year plan at the University of South Carolina and racked...

    1. Fred was on the seven year plan at the University of South Carolina and racked up $98,000 in student loans, which carry an annual interest rate of 10.8 percent and require monthly payments. His mom has offered to help him pay them off, but she wants to see him become responsible (good luck on that). She has said that if he pays off half of the debt within three years, she will pay the rest. How much would Fred...

  • Dynamo Corp. is expecting annual payments of 34,291 for the next seven years from a customer....

    Dynamo Corp. is expecting annual payments of 34,291 for the next seven years from a customer. What is the present value of this annuity if the discount rate is 8 percent? Round to 2 decimal places. Your grandfather has agreed to deposit a certain amount of money at the end of each year into an account paying 7 percent annually to help you go to graduate school. Starting next year, and for the following four years, he plans to deposit...

  • What is the future value of an 8 year ordinary annuity with an annual payment of...

    What is the future value of an 8 year ordinary annuity with an annual payment of $600 if the interest rate is 13.5%?          What is the present value of a 17 year ordinary annuity with an annual payment of $216,000 if the opportunity cost rate is 15.2%?          An ordinary annuity pays $16,375 per year for 9 years. If you pay $100,000 for this annuity now, what rate of return (interest rate) will you earn?          A 22 year...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT