UESTION 44 49. What is the present value of a $10,000 payment if you receive it...
Present Value of a Lump Sum What is the present value of a $10,000 prize you expect to receive in 9 years? You require an 8 percent discount rate Write your answer out to two decimal places. (Note: Use the present value of an lump sum table in the Exhibit 1-3.) (Round yo answer to the nearest dollar amount.) ount per payment
You can purchase an asset today for $10,000. If you purchase the asset, you will receive a net incremental cash flow of $1600 at the end of each of the next 10 years. What is the Internal Rate of Return and Net Present value with a discount rate of 8%? Please show in excel. Thank you!
You can receive $10,000 today or $2.500 per year for the next five years. If the required rate of return is 10%, what option should be selected? (The present value of an ordinary annuity at 10% for five periods is 3.7908. The present value of one at 10% for five periods is 0.6209.) a) Receive $2,500 per year for the next five years. b) The results are the same for both options. c) Neither option is desirable. d) Receive $10,000...
you have been given the option to receive a one-time cash payment today of $10,000, or a payment of $2,500 each year for 5 years beginning next year. How much more or less are the five payments worth in present value than the immediate payment at a cost of capital of 5.5%? A. 1,234.54 more B. 555.42 less C. 423.22 less D. 675.71 more E. 721.21 less
You are due to receive a lump-sum payment of $1,750 in three years and an additional lump-sum payment of $1,850 in five years. Assuming a discount rate of 3.0 percent interest, what would be the value of the payments today?
Just 60 As a winner of a lottery you are going to receive $10,000 every year forever, starting one year from today. If the appropriate discount rate is 10%, what is the present value of the award cash flows? $40,000 $20,000 80,000 $100,000 $125,000 QUESTION 60 In the above question, suppose your prize is growing at a constant rate of 2% every year. In other words, you are going to receive $10,000 one year from today, $19,000(1.02) in 2 years...
If you are expecting to receive an amount of $ 10,000 but after 2 years, how much the present value would be today if the discount rate is 10%?
You are going to receive $205,000 in 50 years. What is the difference in present value between using a discount rate of 14 percent versus 9 percent? Use Apcendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Input your answer as a positive value. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Difference in present value
What is the present value of a $560 payment in two years when the discount rate is 8 percent?
You are calculating the present value of $1,000 that you will receive five years from now. Which table will you use to obtain the present value factor to calculate the present value of that $1,000? You are calculating the present value of $1,000 that you will receive five years from now. Which table will you use to obtain the present value factor to calculate the present value of that $1,000? A. Present Value of Ordinary Annuity of $1 B. Future...