Question
a) What is the present value today of a 20-year annuity of $1,000 per payment if the discount rate is 10% and the first payment
a) What is the present value today of a 20-year annuity of $1,000 per payment if the discount rate is 10% and the first payment is 1 year from now?
b) What is the present value today of a 20-year growing annuity if first payment is $1,000 and each successive payment grows at 3%? Assume the discount rate is 10% and the first payment is 1 year from now?
c) What is the present value today of a perpetuity if each payment is $1,000? Assume the discount rate is 10% and the first payment is 1 year from now?
d) What is the present value today of a growing perpetuity if first payment is $1,000 and each successive payment grows at 3%? Assume the discount rate is 10% and the first payment is 1 year from now?
e) What is the present value today of a 15-year annuity of $1,500 per payment if the discount rate is 10% and the first payment is 10 years from now?
f) What is the present value today of a growing perpetuity if first payment is $500 and each successive payment grows at 2%? Assume the discount rate is 10% and the first payment is 5 years from now?
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How To Read A Financial Report Wringing Vital Signs Out Of The Numbers
Authors: John A. Tracy , Tage C. Tracy
9th Edition
1119606462,1119606489
