You are scheduled to receive annual payments of $3,600 for each of the next 12 years...

You are scheduled to receive annual payments of $3,600 for each of the next 12 years (you are going to receive the payments at the end of each year). The discount rate is 10 percent. What is the present value of these cash flows? Round the answer to two decimal places.

Solutions

Expert Solution

Answer: To calculate the present value of future cash inflows we need to discount the future cash flows with discount rate i.e. 10 %. After discounting all the cash flows of 12 years present value comes to $ 24526.80.

Please check the image attached below for detailed solution:

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

You are scheduled to receive annual payments of $8,500 for each of the next 21 years....

You are scheduled to receive annual payments of $8,500 for each of the next 21 years. The discount rate is 8.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

You are scheduled to receive annual payments of $9,600 for each of the next 24 years....

You are scheduled to receive annual payments of $9,600 for each of the next 24 years. The discount rate is 8.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year? $9,600.00 $10,368.00 $8,554.57 $9,279.36 $8,086.09

You are scheduled to receive annual payments of $8,700 for each of the next 23 years....

You are scheduled to receive annual payments of $8,700 for each of the next 23 years. The discount rate is 8.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year? a. $7,642.82 b. $8,409.42 c. $9,396.00 d. $8,700.00 e. $7,218.26

You are scheduled to receive annual payments of $8,600 for each of the next 27 years....

You are scheduled to receive annual payments of $8,600 for each of the next 27 years. The discount rate is 7.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

8. You are scheduled to receive annual payments of $60,000 for each of the next 20...

8. You are scheduled to receive annual payments of $60,000 for each of the next 20 years. The annual rate of return is 8 percent. What is the difference in the future value in year 20 if you receive these payments at the beginning of each year rather than at the end of each year? 9. You make the following deposits for the next five years into an investment account. All deposits are made at the end of the year...

You are scheduled to receive an annual payment of $3,600 in oneyear. This payment will...

You are scheduled to receive an annual payment of $3,600 in one year. This payment will increase by 4% annually forever (you are going to receive the payments at the end of each year forever). The discount rate is 10 percent. What is the present value of these cash flows?

For the next 30 years, you will receive annual payments of $10,000/year. The difference in the...

For the next 30 years, you will receive annual payments of $10,000/year. The difference in the present value terms if you receive these payments at the beginning of each year rather than at the end of each year is closest to what value? Assume the discount rate is 6% APR 8150 8300 7850 8000 8450

You are set to receive an annual payment of 10600 per year for the next 12...

You are set to receive an annual payment of 10600 per year for the next 12 years. Assume the interest rate is 5.5 percent. How much more are the payments worth if they are received at the beginning of the year rather than the end of the year

1. Suppose that you will receive annual payments of $27,400 for a period of 20 years....

1. Suppose that you will receive annual payments of $27,400 for a period of 20 years. The first payment will be made 6 years from now. If the interest rate is 8.00%, what is the value of the annuity in year 5, what is the current value of this stream of cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places.) a) Value of security in year 5? b) Value of security today? 2. The...

Problem 11 You are scheduled to receive 13,000 in two years. When you receive it, you...

Problem 11 You are scheduled to receive 13,000 in two years. When you receive it, you will invest it for six more years at 8 percent per year. How much will you have in eight years? The answer is: Problem 12 You have 9,000 to deposit. ABC Bank offers 12 percent per year compounded monthly, while King Bank offers 12 percent but will only compound annually. How much will your investment be worth in 10 years at each bank? The...

Subjects