Question
In: Finance
An investment pays $20,000 at the end of year 2, $30,000 at the end of year...
An investment pays $20,000 at the end of year 2, $30,000 at the end of year 4 and $X at the end of year 8. At an annual effective rate of 8.5%, the modified duration of this cash flow is 5.51704. Calculate X (round your answer to integer).
Show all works, and please show ur work it with math steps and illustrations instead of excel tables!! Thank you! I will thumb up if it's correct!
Solutions
jeff jeffy answered 1 year agoRelated Solutions
An investment pays $20,000 at the end of year 2, $30,000 at the end of year...
An investment pays $20,000 at the end of year 2, $30,000 at the
end of year 4 and $X at the end of year 8. At an annual effective
rate of 8.5%, the modified duration of this cash flow is 5.51704.
Calculate X (round your answer to integer).
Ans should be one of these: Numerical answers (in random order)
6.955, 0.062, 4.5228, 6538.49, 0.04317, 2660.67, 50000, 400.36,
202.1, 3671.29, 1951.62, 4.4621.
please show all work and do not use excel...
An investor invests $500. The investment pays $100 at the end of year 2, $200 at...
An investor invests $500. The investment pays $100 at the end of
year 2, $200 at the end of year 3 and $300 at the end of year
4.
Calculate the net present value (NPV) of the investment using
interest preference rate of 5.7%.
----------------------------------------------
I got
v = 1/1.12
So would it just be NPV = -500 + 100(v)^2 + 200v^3 + 300v^4?
An annuity pays $1 at the end every odd year and $2 at the end of...
An annuity pays $1 at the end every odd year and $2 at the end
of each even year (not counting year 0) for 10 years. If the
effective annual rate is 6%, what is the present value of the
annuity?
Show all your work leading to your final answer
Year Cash Flow Ins 1 $20,000 2 $40,000 3 $40,000 4 $20,000 5 $30,000 Rieger International...
Year Cash Flow Ins 1 $20,000 2 $40,000 3 $40,000 4 $20,000 5
$30,000 Rieger International is attempting to evaluate the
feasibility of investing $96000 in a piece of equipment that has a
5 -year life. The firm has estimated the cash inflows associated
with the proposal as shown in the following table. The firm has a 9
% cost of capital. a. Calculate the payback period for the proposed
investment. b. Calculate the net present value (NPV) for the...
An investor invests $11000. The investment pays $4000 at the end of year 1, $5000 at...
An investor invests $11000. The investment pays $4000 at the end
of year 1, $5000 at the end of year 2 and $4500 at the end of year
3. (a) Calculate the internal rate of return (IRR) of the
investment. (b) Calculate the net present value (NPV) of the
investment using interest preference rate of 8.5%.
Ans is 10.76% for (a)
Show all works, and please calculate it with math steps AND
DON'T USE financial calculator!!your Answer should be in...
An investor invests $11000. The investment pays $4000 at the end of year 1, $5000 at...
An investor invests $11000. The investment pays $4000 at the end
of year 1, $5000 at the end of year 2 and $4500 at the end of year
3. (a) Calculate the internal rate of return (IRR) of the
investment. (b) Calculate the net present value (NPV) of the
investment using interest preference rate of 8.5%.
Show all works, and please calculate it with math formula
instead of financial calculator!! Thank you!
Investment A is an annuity that pays $1,230 at the end of eachyear for 10...
Investment A is an annuity that pays $1,230 at the end of each
year for 10 years.
Investment B is a perpetuity that pays
$315 at the end of each year forever.
Given that the interest rate is 3% per
year, which investment has the higher present value as of
today?
Investment A
Investment B
If $30,000 is deposited in a savings account at the end of each year and the...
If $30,000 is deposited in a savings account at the end of each
year and the account pays interest of 5% compounded annually, what
will be the balance of the account at the end of 10 years?
Gustav owns a perpetuity which pays 200 per year starting at the end of year 2....
Gustav owns a perpetuity which pays 200 per year starting at the
end of year 2. Ingrid owns a perpetuity that pays deposits X at the
end of each 6 months, beginning 6 months from now. Assume a nominal
annual interest rate of 8%. For what value of X is the present
value of the two perpetuities equal.
Compute the amount that a $20,000 investment today would accumulate to at the end of 10...
Compute the amount that a $20,000 investment today would
accumulate to at the end of 10 years, 8% interest compounded
quarterly.
$ __________
Part (b) Fran wants to retire at the end of this
year (2020). Her
life expectancy is 35 years from her retirement. She has
come to you, her CPA, to learn how much she should deposit
on December 31, 2020 to be able to withdraw $100,000 at the
end of each year for the next 35...
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