What is the lump sum value today for a financial instrument that would pay me $10,000 per year for ten years assuming a discount rate of:

a. 6 percent

b. 12 percent

Expert Solution

jeff jeffy answered 2 years ago

What is the PV of $100 per year for 5 years with a lump sum in...

What is the PV of $100 per year for 5 years with a lump sum in year 5 of $1,000 if the rate is 5%

What is the value today of $1,800 per year, at a discount rate of 8 percent,...

What is the value today of $1,800 per year, at a discount rate of 8 percent, if the first payment is received 4 years from now and the last payment is received 25 years from today?

A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years from today....

A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years from today. The nominal interest rate is 6%, semiannual compounding. Which of the following statements is CORRECT? a. The present value would be greater if the lump sum were discounted back for more periods. b. The PV of the $1,000 lump sum has a smaller present value than the PV of a 3-year, $333.33 ordinary annuity. c. The present value of the $1,000 would be larger...

At approximately what rate would you have to invest a lump-sum amount today if you need...

At approximately what rate would you have to invest a lump-sum amount today if you need the amount to double in 27 months? Assume interest is compounded annually. Select one: a. 20% b. 12% c. 36% d. Not enough information is provided to answer the question. e. 24%

1. What is the value to you today a $50,000 lump-sum that you will receive in...

1. What is the value to you today a $50,000 lump-sum that you will receive in 5 years if you could invest your money at 6% compounding monthly? (rate is on annualized bases) 2. You invest $5,000 today with the expectation that this investment will return $100 monthly for the next 5 years. What is your expected annual rate of return?

What is the present value of a lump sum, $240,000 in 6 years if the interest...

What is the present value of a lump sum, $240,000 in 6 years if the interest rate (discount rate) is 11.4 percent annually? (Round your answer to 2 decimal places. (e.g., 123,345.16)) Your answer:

Assume an investment costing $24,869 will earn $10,000 a year for ten years. If the discount...

Assume an investment costing $24,869 will earn $10,000 a year for ten years. If the discount rate is 15%, what is the NPV of this project? Show this in excel with the formulas for excel shown. the formulas must be shown

a. A financial asset generates returns of $10,000 at the end of each year for ten years. The required rate of return if 7% per year. How much must you pay to buy this asset?

Exercice 4: a. A financial asset generates returns of $10,000 at the end of each year for ten years. The required rate of return if 7% per year. How much must you pay to buy this asset? b. A stock pays a constant dividend of $10, starting at the beginning of year 6 (t=6). What is the present value today of the perpetuity if the required rate of return is 20%?

Find the present value of receiving $1000 per year for ten years beginning in year 12 until year 21, assuming an interest rate of 9%.

What is the value today of a money machine that will pay $4,705.00 per year for...

What is the value today of a money machine that will pay $4,705.00 per year for 24.00 years? Assume the first payment is made 2.00 years from today and the interest rate is 11.00%. Answer format: Currency: Round to: 2 decimal places.

Question