What discount rate would make you indifferent between receiving $3,958.00 per year forever and $5,814.00 per...

What discount rate would make you indifferent between receiving $3,958.00 per year forever and $5,814.00 per year for 30.00 years? Assume the first payment of both cash flow streams occurs in one year.

Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago

What is the value today of receiving $2,562.00 per year forever? Assume the first payment is...

What is the value today of receiving $2,562.00 per year forever? Assume the first payment is made next year and the discount rate is 7.00%. Answer format: Currency: Round to: 2 decimal places. What is the value today of receiving $2,197.00 per year forever? Assume the first payment is made 8.00 years from today and the discount rate is 13.00%. Answer format: Currency: Round to: 2 decimal places.

What is the value today of receiving $1,774.00 per year forever? Assume the first payment is...

What is the value today of receiving $1,774.00 per year forever? Assume the first payment is made next year and the discount rate is 11.00%. Answer format: Currency: Round to: 2 decimal place Suppose you deposit $2,951.00 into an account today that earns 13.00%. In 10.00 years the account will be worth $________. Answer format: Currency: Round to: 2 decimal places.

What is the value of receiving $4,000 per month forever, the first cash flow starting in...

What is the value of receiving $4,000 per month forever, the first cash flow starting in one month, if the discount rate is a 3% monthly compounded APR? What if the discount rate is an annually compounded 3%?

Assume the appropiate discount rate is 6%. A company will receive a payment every year forever,...

Assume the appropiate discount rate is 6%. A company will receive a payment every year forever, which will grow at 2% annually. The amount of the first payment will be $5,000. What is the current value of this series of payments?

Assume the appropiate discount rate is 3%. A company will receive a payment every year forever,...

Assume the appropiate discount rate is 3%. A company will receive a payment every year forever, which will grow at 2% annually. The amount of the first payment will be $2,000. What is the current value of this series of payments?

Assume the appropiate discount rate is 7%. A company will receive a payment every year forever,...

Assume the appropiate discount rate is 7%. A company will receive a payment every year forever, which will grow at 1% annually. The amount of the first payment will be $6,000. What is the current value of this series of payments?

What is the present value of a perpetuity of $80 per year if the discount rate...

What is the present value of a perpetuity of $80 per year if the discount rate is 11%?

a) What is the present value of $1,200 per year, at a discount rate of 8...

a) What is the present value of $1,200 per year, at a discount rate of 8 percent, if the first payment is received 9 years from now and the last payment is received 28 years from now? b) ABC Co. wants to sell you an annuity that will pay you $500 per quarter for 25 years. You want to earn a minimum rate of return of 5.1 percent. What is the most you are willing to pay today to buy...

What is the present value of $2,625 per year at a discount rate of 8%, if...

What is the present value of $2,625 per year at a discount rate of 8%, if the first payment is received six years from now and the last payment is received 20 years from now? PLEASE USE excel

1. You will receive $100 per year for 10 years. The discount rate is 10%. What...

1. You will receive $100 per year for 10 years. The discount rate is 10%. What is the present value of this stream? 2. Using the previous information, assume now the 100 will increase at a 5% per year from year 1. What is the new present value? 3. Now assume compute the present value for the same information using a perpetuity without and with growth. Compare the 4 present values. What would you rank those? (Please explain step by...

Question