In: Finance
QUESTION 96
A baseball player is offered a contract that will pay $1,455,382 per year for 5 years, followed by $2,113,877 per year for 3 years, followed by $2,633,054 per year for 7 years. All contract payments are paid at the end of the year. If the player's required rate of return is 5.7%, how much is this contract worth? State your answer to the nearest whole dollar.
QUESTION 97
A company is considering the purchase of a new production line that it has estimated will generate the following annual cash flows: $5,710,498 per year for 8 years, followed by $7,672,287 per year for 2 years, followed by $3,519,326 per year for 15 years. All cash flows will be received at the end of the year. If the company's required rate of return is 12.4%, what is the maximum price at which the company will purchase this new line? State your answer to the nearest whole dollar.
QUESTION 98
Assume that you will receive $8,766 per year for 4 years, followed by $4,590 per year for 8 years, followed by $7,686 per year for 3 years. All cash flows are to be received at the end of the year. If the required rate of return is 14.9%, what is the present value of these cash flows? State your answer to the nearest whole dollar.
QUESTION 99
What is the present value of a 28-year ordinary annuity with annual payments of $118,60480,000, evaluated at a 7.1 percent interest rate? State your answer to the nearest whole dollar.
QUESTION 100
What is the effective annual interest rate on an investment that quotes a nominal annual rate of 8.79% compounded quarterly? State your answer as a percentage to 2 decimal places