Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 02, 2024

Please show work. Parts a and b. 3. (Present value and time) An investment promises to return $20,000 in 1 year while a second investment

image text in transcribed

Please show work. Parts a and b.

3. (Present value and time) An investment promises to return $20,000 in 1 year while a second investment promises to return $186,350 in 30 years. Investors require an 8% rate of return from both investments. a. What is the present value of each investment? b. What happens to the present value of each investment if the required rate of return rises to 10%

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_2

Step: 3

blur-text-image_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

Computational Techniques In Economics And Finance

Computational Techniques In Economics And Finance

Authors: Constantin Zopounidis

1st Edition

1613245580, 978-1613245583

More Books

Students also viewed these Finance questions

Question

★★★★★

Refer to the data in Exercise 14-2 for Classic Vinyl Limited. Data from Exercise 14-2, Classic Vinyl Limited is a record wholesaler selling new and used vinyl records to record stores and antique...

Answered: 1 week ago

Question

★★★★★

Solve each inequality algebraically. (x 3)(x + 2) x-1 0

Answered: 1 week ago

Question

★★★★★

=+ (b) Show that if F is continuous at each point of F-'A, then P[F(X) A] is at most the Lebesgue measure of A.

Answered: 1 week ago

Question

★★★★★

At a recent meeting of the accounting staff in your company, the controller raised the issue of using present value techniques to conduct impairment tests for some of the companys fixed assets. Some...

Answered: 1 week ago

Question

★★★★★

Question 2 : Lesson 2 2 ( beam deflections ) mentions a myriad of techniques for computing deflection. Do you think that the equation technique, used in this course, is appropriate? Explain why or...

Answered: 1 week ago

Question

★★★★★

For which of the following matters should an auditor obtain written management representations? Select one of the below situations and explain your response. (a) Management's cost-benefit...

Answered: 1 week ago

Question

★★★★★

Obje For Exercises 39-40, determine whether the intermediate value theorem guarantees that the function has a zero on the given interval. (See Example 5) - 39. f(x)=2x-7x14x + 30 a. [1, 2] c. [3,4]...

Answered: 1 week ago

Question

★★★★★

A rocket thrust chamber contains a propellant of molecular weight M = 25 and a specific heat ratio of ? = 1.2. The chamber pressure is pc = pt = 10 MPa, and the combustion temperature is Tc = Tt =...

Answered: 1 week ago

Question

★★★★★

Give at least 5 possible survey questions for research study entitled "The level of customer satisfaction towards self ordering kiosk on selected fast food chains" that are answerable by "satisfied,...

Answered: 1 week ago

Question

★★★★★

11. A movie screen on a wall is 20 feet high and 10 feet above the floor. At what distance x from the front of the room should you position yourself so that the viewing angle of the movie screen is...

Answered: 1 week ago

Question

★★★★★

How to create spreadsheets? Understand data in today's business world Create a post that is at least three sentences long

Answered: 1 week ago

Question

★★★★★

2. What efforts are countries making to reverse the brain drain?

Answered: 1 week ago

Question

★★★★★

3. Explain the process of job evaluation and comment on how a points rating job evaluation scheme can contribute to perceptions of fairness from the point of view of employees.

Answered: 1 week ago

Question

★★★★★

3. In your view what are the ethical considerations when employing talented people from a third-world country?

Answered: 1 week ago

Previous Question Next Question