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What is the value of an investment that will pay investors 7,640 dollars per year for 5 years and will also pay investors an additional
What is the value of an investment that will pay investors 7,640 dollars per year for 5 years and will also pay investors an additional 6,610 dollars in 3 year(s) from today if the expected return for the investment is 17.17 percent per year and the first annual payment of 7,640 dollars will be paid to investors in one year from today? Number A diamond mine is expected to produce regular annual cash flows of $1 million for 8 years with the first regular cash flow expected in 1 year from today. In addition to the regular cash flows of $1,000,000, the diamond mine is also expected to produce an extra cash flow of $3,000,000 in 8 years from today. The cost of capital for the mine is 12 percent. What is the value of the mine? Number Bob has an investment worth $300,000. The investment will make a special payment of X to Bob in 2 years from today. The investment also will make regular, fixed annual payments of $65,000 to Bob with the first of these payments made to Bob in 1 year from today and the last of these annual payments made to Bob in 6 years from today. The expected return for the investment is 10 percent per year. What is X, the amount of the special payment that will be made to Bob in 2 years? Number
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