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A) Question 4 You own a building that is worth 64,000 dollars and is expected to produce quarterly cash flows of 1,300 dollars forever. The
A) Question 4 You own a building that is worth 64,000 dollars and is expected to produce quarterly cash flows of 1,300 dollars forever. The first quarterly cash flow is expected in 3 months from today. What is the expected quarterly cost of capital for the building? Answer as a rate in decimal format so that 12.34% would be entered as 1234 and 0.98% would be entered as .0098. Number B) An investment, which is worth 24,300 dollars and has an expected return of 13.33 percent, is expected to pay fixed annual cash flows forever with the next annual cash flow expected in 1 year. What is the present value of the annual cash flow that is expected in 6 years from today? Number c) Quantum Pizza took out a loan from the bank today for 27,700 dollars. The loan requires Quantum Pizza to make a special payment of 11,400 dollars to the bank in 1 years and also make regular, fixed payments of X to the bank each year forever. The interest rate on the loan is 8.08 percent per year and the first regular, fixed annual payment of X will made to the bank in 1 year. What is X, the amount of the regular, fixed annual payment? Number
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