Question

In: Finance

A salt mine you inherited will pay you $61,000 per year for 25 years, with the...

A salt mine you inherited will pay you $61,000 per year for 25 years, with the first payment being made today. If you think a fair return on the mine is 7.5%, how much should you ask for it if you decide to sell it?

Solutions

Expert Solution


Related Solutions

you inherited an annuity that will pay you $900 per year for 18 years, with the...
you inherited an annuity that will pay you $900 per year for 18 years, with the first payment being made today. would you sell it today if you were offered a price of $11,000 for it? assume interesr rate is 5%
Calvin just inherited an annuity that promises to pay $50,000 per year for 10 years, beginning...
Calvin just inherited an annuity that promises to pay $50,000 per year for 10 years, beginning 15 years from today. Assuming a required rate of return of 10%, Calculate the present value of the annuity.
Your first job out of college will pay you $61,000 in year 1 (exactly one year...
Your first job out of college will pay you $61,000 in year 1 (exactly one year from today), growing at a rate of 3.0% per year thereafter. You will also receive a one time bonus of $39,000 at the same time as your first salary. You plan to retire in 39 years (you'll receive 39 years of salary). If the applicable discount rate is 6%, what is the present value of these future earnings today? Round to the nearest cent.
You invest in a project that will pay you $500 per year for 5 years and then pays $750 per year for the following 10 years
You invest in a project that will pay you $500 per year for 5 years and then pays $750 per year for the following 10 years (assume that all payments are made at the end of the year). You require a 6% rate of return on this type of investment. Give your return requirement, what is the maximum amount that you would be willing to pay today for the cash flow stram associated with this project? Round only your final...
You will need $100,000 per year for 25 years starting in year 45.    You are able to...
You will need $100,000 per year for 25 years starting in year 45.    You are able to save $3000 per year from year 3 to year 15, inclusive.  How much must you save from years 16 through 37, inclusive, if interest rates will be 4% from years 0 through the end of year 25 and 7% starting at the beginning of year 26 and on?    Solve for the unknown payments: Please show work: I do not understand my professors work
You just purchased an annuity that will pay you $24,000 a year for 25 years,  starting today....
You just purchased an annuity that will pay you $24,000 a year for 25 years,  starting today. What was the purchase price if the discount rate is 8%? $256,195 $251,409 $245,621 $276,690 $258,319
Assume that you own an annuity that will pay you $15,000 per year for 13 years,...
Assume that you own an annuity that will pay you $15,000 per year for 13 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $120,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? a. 8.25% b. 9.45% c. 10.97% d. 7.78% e. 11.07%
Your current salary is $52,000 per year, and you are planning to retire in 25 years...
Your current salary is $52,000 per year, and you are planning to retire in 25 years from now. She anticipates that her salary will increase $3,000 each year, and she plans to deposit 5% of her yearly salary into a retirement fund that earns 7% interest compounded daily. What will be the amount of interest accumulated at the time of your retirement?
Scenario: You are 33 years old, single, earn $55,000 per year, and are in the 25%...
Scenario: You are 33 years old, single, earn $55,000 per year, and are in the 25% tax bracket. You want to understand the federal tax system and plan ahead so as not to pay unnecessary sums to the government in taxes. For this tax year, you contributed $1,500 to an employer-sponsored 401(k), paid student loan interest of $900, had out-of-pocket medical and dental expenses of $2,000, made gifts to charity of $1,500, and made rent payments totalling $10,200 during the...
We Pay Insurance Co. will pay you $1,125 each quarter for 25 years. You want to...
We Pay Insurance Co. will pay you $1,125 each quarter for 25 years. You want to earn a minimum interest rate of .86 percent per quarter. What is the most you are willing to pay today for these payments?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT