Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 07, 2024

What is the present value of $100,000 per year forever, with the first payment made in 2 years from now if the discount rate is

What is the present value of $100,000 per year forever, with the first payment made in 2 years from now if the discount rate is 10%? (round to the nearest dollar)

# the original answer that they gave me $826,446 was wrong

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

Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

6th Edition

0321113624, 978-0321113627

More Books

Students also viewed these Finance questions

Question

★★★★★

At year end, records show that actual overhead costs incurred were $25,870 and the amount of overhead costs applied to production was $27,000. Identify the amount of under-or over-applied overhead,...

Answered: 1 week ago

Question

★★★★★

What is the future value eight years from now of each of the following cash-flow streams if money can earn 9% compounded semiannually? a. A single payment of $5000 today. b. An ordinary annuity...

Answered: 1 week ago

Question

★★★★★

Assuming a sale of stock futures being liquidation of long stock futures, which among the following is true? a. Receivable from broker amount will be shown as investments on the asset side of balance...

Answered: 1 week ago

Question

★★★★★

Bell Companys fiscal year ends on June 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year. Other data: 1. On July 1, two jobs were...

Answered: 1 week ago

Question

★★★★★

INVESTING $105,000 IN A PIECE OF EQUIPMENT THAT HAS 5 YEAR LIFE. THE FIRM HAS A COST OF CAPITAL 11% Year (t) 1 23 4 5 Cash inflows (CF) $25,000 $25,000 $35,000 $40,000 $35,000 a. Calculate the...

Answered: 1 week ago

Question

★★★★★

Marketing a service poses new challenges to the marketer. You have a product that you can't see or touch so the customer can't be sure of what they are getting. For this assignment you will be...

Answered: 1 week ago

Question

★★★★★

On March 1, 2025, Oriole Company purchased land for an office site by paying $2520000 cash. Oriole began construction on the office building on March 1. The following expenditures were incurred for...

Answered: 1 week ago

Question

★★★★★

Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 17,000 dinars to be made on March 1, 2021. The materials are consumed...

Answered: 1 week ago

Question

★★★★★

Assume Avaya contracted to provide a customer with Internet infrastructure for $2,100,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below:...

Answered: 1 week ago

Question

★★★★★

Problem 9-2 (Algo) Lower of cost or net realizable value; by product, category, and total inventory [LO9- 1] Ace Hardware Store sells two product categories, tools and paint products. Information...

Answered: 1 week ago

Question

★★★★★

In theory, a 3.0GHz processor is not 50% faster than a 2.0GHz processor.

Answered: 1 week ago

Question

★★★★★

2. What reaction would you expect of employees at the preconventional level?

Answered: 1 week ago

Question

★★★★★

1. What decisions would a city manager at the preconventional level be expected to make?

Answered: 1 week ago

Question

★★★★★

6. What reaction would you expect of employees at the postconventional level?

Answered: 1 week ago

Previous Question Next Question