Suppose you are going to receive $13,500 per year for five years. The appropriate interest rate...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose you are going to receive $13,500 per year for five years. The appropriate interest rate is 6.8%. a-1 What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediat and round your final answer to 2 decimal places. (e.g., 32.16)) Present value a-2 What is the present value if the payments are an annuity due? (Do not round intermediate calculations and round y answer to 2 decimal places. (e.g., 32.16)) Present value Suppose you are going to receive $13,500 per year for five years. The appropriate interest rate is 6.8%. a-1 What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediat and round your final answer to 2 decimal places. (e.g., 32.16)) Present value a-2 What is the present value if the payments are an annuity due? (Do not round intermediate calculations and round y answer to 2 decimal places. (e.g., 32.16)) Present value
Expert Answer:
Answer rating: 100% (QA)
a1 Present value of ordinary annuity 13500 1 1 1 00685 0068 Present value ... View the full answer
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
Posted Date:
Students also viewed these accounting questions
-
You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $6.7 million...
-
-Previous Question 4 Next If, in Year 9, a company reports operating profit of $55 million, earns net income of $38 million, has 19 million shares of common stock outstanding, pays a dividend of...
-
Suppose you are going to receive $ 20,000 per year for five years. The appropriate interest rate is 7 percent. a. What is the present value of the payments if they are in the form of an ordinary...
-
The management of Mecca Copy, a photocopying centre located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: Ending Balances...
-
Consider the same setting as the previous problem. Assume now that each philosopher requires three chopsticks to eat and that resource requests are still issued separately. Describe some simple rules...
-
Short-term and long-term disability insurance were purchased for Francis and monthly premiums of \($195\) were paid. In April, Francis contracted COVID-19 and was unable to work for three months...
-
List three profitability ratios and discuss how these ratios are used to assess a company's performance.
-
Michael Roberts is a cost accountant and business analyst for Darby Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct cost categories: direct materials and...
-
Thank you! Problem 1 The analyst is analyzing the ?nancial statements of another Yettobe corporation (the state?? ments are in million dollars). Its stock is currently traded at $50 and it has 20 m...
-
Local Harvest, a cooperative of organic family-owned farms outside of Dubai, has recently started a fresh produce club. By growing organic produce the farms hope promote good health. To be able to...
-
For the following, determine two distinct basic feasible solutions at which the optimal value of the objective function is attained. Minimize x1-3x2-6x3 subject to 2x1 - x2 + x3 + x4 60 3x1 + 4x2 +...
-
As a leader it is important to know how to feel your feelings and express them as well. This helps with self-change because emotional intelligence is the process of understanding your feelings, but...
-
Evaluate an existing mode of transportation. For example, take a bicycle and describe its cost (how much does a bike cost, how much is maintenance and upkeep?), its environmental impact (pretty low...
-
Name an intellectual property and discuss why that property must be protected for a mixed economy to function. Finally, discuss what would happen if the government failed to protect intellectual...
-
PRACTICE QUESTION: please an 1 & 2 1. List but do not discuss, four advantages of standards and standard costing. 2. Briefly discuss how you will go about preparing a budget for a General...
-
let V=R" (IR) and S = { (3,-441), (4,3,2,1), (1,4,1,0)} R. Determine whether 30 vector 2 = 16,1114,11 E1R4 belongs to <5> or not.
-
(a) Find the equation of the tangent line to f(x) = x 3 at the point where x = 2. (b) Graph the tangent line and the function on the same axes. If the tangent line is used to estimate values of the...
-
Use Figure 20.1 to answer the following questions. Suppose interest rate parity holds, and the current six-month risk-free rate in the United States is 3.8 percent. What must the six-month risk-free...
-
In the previous problem, what would the risk-free rate have to be for the two stocks to be correctly priced?
-
What is the present value of an annuity of $6,000 per year, with the first cash flow received four years from today and the last one received 18 years from today? Use a discount rate of 8 percent.
-
You are presented with the following summarised information relating to Ward plc: 1. The taxation charge in the profit and loss account includes the following items: 2. During the year to 30 June...
-
You are presented with the following forecast information relating to Baker Limited for the nine months to 30 September 2007. Forecast profit and loss accounts (abridged) for the three quarters to 30...
-
The accountant of a private company has been able to get the use of a computer to produce the spreadsheets shown below but as yet the computer lacks a program to print out final accounts. The...
Study smarter with the SolutionInn App