Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 09, 2024

a friend tell you they will pay you and your descendants $ 1 0 0 per year forever. discount rate 4 % . what is

a friend tell you they will pay you and your descendants $

100

per year forever. discount rate

4 % .

what is this stream of cash flows worth today?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance Theory And Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J Melitz,

11th Edition

013451954X, 9780134519548

More Books

Students also viewed these Finance questions

Question

★★★★★

Metro Construction received $60,000 in vendor financing at 10.5% compounded semiannually for the purchase of a loader. The contract requires semiannual payments of $10,000 until the debt is paid off....

Answered: 1 week ago

Question

★★★★★

Using the large sample confidence interval formula for the mean, compute a 95% confidence interval for the mean when (a) ???? = 217, ???? = 283.9, and ???? = 35.6. (b) ???? = 333, ???? = 7.8, and...

Answered: 1 week ago

Question

★★★★★

=+d) The Richter scale measures the damage potential of earthquakes. Some scientists think it is best used for judging the relative size of earthquakes and not their absolute size. Are earthquakes...

Answered: 1 week ago

Question

★★★★★

At the beginning of 2014, Florida Rock Industries had 25,000 shares of common stock issued and outstanding and 500 $1,000, 6% bonds, each convertible into 10 shares of common stock . During 2014,...

Answered: 1 week ago

Question

★★★★★

Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the largest percentage increase in price? A An 8-year bond with a 9% coupon. B A 1-year...

Answered: 1 week ago

Question

★★★★★

In a study of activity at a garage in Belgrade, a defective tyre is found in one out of every five cars examined. Suppose that in a working day 10 cars are examined. Let X be the number of cars found...

Answered: 1 week ago

Question

★★★★★

How to formulate a mathematical solution on , Workers cost,job duration and number of workers and job regulation

Answered: 1 week ago

Question

★★★★★

48. (4 points) Assume the following spot and forward rates for the euro ($/euro). Spot rate 30-day forward rate 90-day forward rate 120-day forward rate $1.6277 1.6330 1.6353 1.6387 A) What is the...

Answered: 1 week ago

Question

★★★★★

The initial investment in the project is estimated to be $80,000 in year 0, $13,500 in year 1, $16550 in year 2, $12250 in year 3 of the project. The Whalers rest Moton in requires a discount rate of...

Answered: 1 week ago

Question

★★★★★

The notion of visual management and visual control is utilised as part of the lean management system to handle work in a methodical fashion, including decreasing the tracking time for accessing email...

Answered: 1 week ago

Question

★★★★★

When a company evolves beyond its need for an international division, it may be considered a global enterprise. At this stage in its development, it may have any of several organizational structures....

Answered: 1 week ago

Question

★★★★★

2. Should a disciplinary system be established at Carter Cleaning?

Answered: 1 week ago

Question

★★★★★

1. What would you do if you were Jennifer, and why?

Answered: 1 week ago

Question

★★★★★

1. Explain what is meant by ethical behavior.

Answered: 1 week ago

Previous Question Next Question