4. What is the present value of a consul bond (a perpetuity) providing $5,000 per year...
A perpetuity of $5,000 per year beginning today offers a 15% return. What is its present value? Multiple Choice $33,333.33 $37,681.16 $65,217.39 $38,333.33
What is the present value of $10,000 per year in perpetuity at an annual interest rate of 10%? Assume the perpetuity starts in one year.
What is the present value of a perpetuity that pays $10 per year if the interest rate is 14%? O $10.00 0 $14.00 O $65.76 O $71.43
PRESENT VALUE OF A PERPETUITY What is the present value of a $600 perpetuity if the interest rate is 6%? Round your answer to the nearest cent. $ If interest rates doubled to 12%, what would its present value be? Round your answer to the nearest cent. $
(Related to Checkpoint 6.5 Present value of a growing perpetuity What is the present value o a perpetual stream o cash flows hat pays $6,500 at the end o year one and he annual cash flows grow at a rate o 2% per year indefinitely, if the appropriate discount rate is 12%? what if the appropriate discount rate is 10%? a f the appropriate discount rate is 12%, the present value of the growing perpetuity is S Round to the...
3. (3 Marks) Determine the present value of a deferred perpetuity of $1000 per year if the first payment is due at the end of six years. The interest rate is 12 = 4%
What is the present value of a perpetuity of $ 8,705 per year given an interest rate of 7.1%, assuming that the first cash flow occurs today? Round your answer to two decimal places and record without a dollar sign and without commas. Your Answer:
Compute the present value of a perpetuity of $16,000 per year given an interest rate of 4 percent p.a., compounded monthly.
5. What is the present value of a $5,000 perpetuity under each of the following growth assumptions? Assume your discount rate is 11%. a) No growth b) 3.0% growth c) 6.0% growth
(Related to Checkpoint 6.5) (Present value of a growing perpetuity) What is the present value of a perpetual stream of cash flows that pays $6,500 at the end of year one and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 11%? What if the appropriate discount rate is 9%?