FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A pension fund must pay out 1 million dollars next year, 2 million dollars the following year and then 3 million dollars after that. If

image text in transcribed

A pension fund must pay out 1 million dollars next year, 2 million dollars the following year and then 3 million dollars after that. If the discount rate is 8%, what is the duration of this obligation? Please fill in the table below to show your process of calculation the year PV, r=8% 1 Cash Flow 1,000,000 2,000,000 3,000,000 PV/Value ? ? ? PV% *t ? ? ? 2 3 ? ? Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Global Finance At Risk

Global Finance At Risk

Authors: S. Sen

1st Edition

1349420492, 978-1349420490

More Books

Students also viewed these Finance questions

Question

★★★★★
How are the component costs combined to form a weighted average cost of capital (WACC), and why is it necessary to use the WACC in capital budgeting?

Answered: 1 week ago

Question

★★★★★
5. What is stepwise regression?

Answered: 1 week ago

Question

★★★★★
Brico Enterprises, a U.S. corporation, acquired an 80% interest in Bandar Distributors in June 2008 when 1 FC equaled $1.62. Bandar is a foreign corporation whose functional currency is the FC. The...

Answered: 1 week ago

Question

★★★★★
1. You just got hired by McKinsey & Company as a financial consultant and they're paying you an egregious amount of money. Accordingly, they have you working on the tough projects like this one......

Answered: 1 week ago

Question

★★★★★
Jupiter, Inc. signed a one - year $48,000 note payable at 8?% interest on March? 1, 2019. How much interest expense must be accrued on May? 31, 2019?? (Round any intermediate calculations to two...

Answered: 1 week ago

Question

★★★★★
On December 4, 20X8, DoCo enters into a contractual agreement to take delivery on January 25, 20X9 of 10,000 pounds of nuts at a cost of $2.20 per pound. On December 31, 20X8, DoCo finds that the...

Answered: 1 week ago

Question

★★★★★
Case Study (13-36) Mt. Hood furniture located at the end of Chapter 13 (Mt. Hood FurniturePPS sampling problem) You have been assigned the task of testing the accuracy of the final inventory...

Answered: 1 week ago

Question

★★★★★
What forces work against X-inefficiency in privately owned monopolies? multiple choice The control of the market reduced the incentive to cut costs. The government oversight reduces the incentive to...

Answered: 1 week ago

Question

★★★★★
Brian and Corrine Lee are married taxpayers filing jointly. They live in the home they own, located at 3 3 0 1 Pacific Coast Highway, Laguna Beach, CA 9 2 6 5 1 . Brian is an optometrist who owns his...

Answered: 1 week ago

Question

★★★★★
On November 3, an investor who had watched his stocks sink to unprecedented low levels sent a fax message to a dealer in precious metals: "Please quote your best price on 800 troy ounces platinum...

Answered: 1 week ago

Question

★★★★★
In respect of the Meteor case study, put yourself in Sarahs position and carry out the following: Explain how you would put together a proposal for a series of changes, including how you would gather...

Answered: 1 week ago

Question

★★★★★
Carry out research into how performance- related pay has worked in the UK teaching profession. (You may fi nd the article by Marsden and Belfi eld (2006) useful here.) Debate whether teachers should...

Answered: 1 week ago

Question

★★★★★
As a human resources manager, you have been asked to carry out a local survey to fi nd the market rate for a marketing assistant. Detail how you would plan and implement this project; list the diffi...

Answered: 1 week ago

Previous Question Next Question