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If someone has been receiving $230 annually for the last 15 years, what is the value...
Focus Drilling Supplies has been growing steadily over the last 20 years. With increased exploration in the mining sector, the company has decided to expand their facilities for supplies and custom drill bit production to meet the increased demand The expansion will occur over 4 years and is expected to require $2.8 million. Management has developed a payment plan for carrying out this expansion. The plan requires a cash input of $300,000 now, $700,000 one year from now, $800,000 two...
Project Case: Focus Drilling Focus Drilling Supplies has been growing steadily over the last 20 years. With increased exploration in the mining sector, the company has decided to expand their facilities for supplies and custom drill bit production to meet the increased demand. The expansion will occur over 4 years and is expected to require $2.8 million. Management has developed a payment plan for carrying out this expansion. The plan requires a cash input of $300,000 now, $700,000 one year...
What is the value today of receiving $5,000 at the end of each year for the next 10 years, assuming an interest rate of 12% compounded annually? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $28,251. $15,529. $50,000. $87,744.
What is the value today of receiving $3,000 at the end of each year for the next three years, assuming an interest rate of 3% compounded annually? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $8,251. $9,000. $9,273. $8,486.
Find the value, in 2 years’ time, of $4000 invested at 5% compounded annually. In the following 2 years, the interest rate is expected to rise to 8%. Find the final value of the investment at the end of the 4-year period, and find the overall percentage increase. Give your answers correct to 2 decimal places. Find the value, in 2 years’ time, of $4000 invested at 5% compounded annually. In the following 2 years, the interest rate is expected...
Ted Roberts has been offered the following future payments n years from today. If his opportunity cost is i, compounded annually, what value would he place on each opportunity? Future Value ($) Interest Rate (%) Years Present Value ($) 8,700 6 11 5,800 8 25 Future Value $ Interest Rate % Years Present value 6,300 16 27 2,900 12 19 What is the Present Value?
In 4 years, you will start receiving monthly payments of $950 from a trust fund that one of your great parents set up for you. The first payment will be made at the very end of year 4 and the payments will last for 27 years. You plan to deposit the money you receive every month into a special account right away that pays 6.10% APR with quarterly compounding. Today the account mentioned above has a balance of $20000. Assuming...
Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $70,000 cash immediately, (2) $24,000 cash immediately and a six-period annuity of $8,100 beginning one year from today, or (3) a six-period annuity of $14,500 beginning one year from today. (FV of $1, PV of $1, EVA of $1, PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Assuming an interest rate...
A bond that compounds annually has a Face Value of $1,000 and maturity of 15 years. Assume that its coupon rate is 8% and yield to maturity (YTM) is 6.12%. What is this bond’s market price?
The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar) (use the appropriate table in the outline or in the text and note that there is not interest payment involved, so this question could be stated as "How much would you loan someone today for a promise to be paid $30,000 in two years (with no interest payments) assuming you want to earn 12% interest on the loan")