Question

In: Finance

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?

Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

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?
Assume the appropriate discount rate is 4%. You will receive a payment every year for the...
Assume the appropriate discount rate is 4%. You will receive a payment every year for the next 17 years, which will grow at 3% annually. The amount of the first payment will be $2,000. What is the current value of this series of payments?
Assume the appropriate discount rate is 7%. You will receive a payment every year for the...
Assume the appropriate discount rate is 7%. You will receive a payment every year for the next 14 years, which will grow at 3% annually. The amount of the first payment will be $5,000. What is the current value of this series of payments?
Assume the appropriate discount rate is 5%. You will receive a payment every year for the...
Assume the appropriate discount rate is 5%. You will receive a payment every year for the next 16 years, which will grow at 4% annually. The amount of the first payment will be $3,000. What is the current value of this series of payments?
Assume the appropriate discount rate is 8%. You will receive a payment every year for the...
Assume the appropriate discount rate is 8%. You will receive a payment every year for the next 13 years, which will grow at 4% annually. The amount of the first payment will be $6,000. What is the current value of this series of payments?
Assume the appropriate discount rate is 8%. You will receive a payment every year for the...
Assume the appropriate discount rate is 8%. You will receive a payment every year for the next 13 years, which will grow at 4% annually. The amount of the first payment will be $6,000. What is the current value of this series of payments?
Assume the appropriate discount rate is 4%. You will receive a payment every year for the...
Assume the appropriate discount rate is 4%. You will receive a payment every year for the next 17 years, which will grow at 3% annually. The amount of the first payment will be $2,000. What is the current value of this series of payments?
You are promised a cash flow every year forever! Next year you will receive $100. After...
You are promised a cash flow every year forever! Next year you will receive $100. After that, the payment will grow by 1% compounded annually. There is no risk associated with the payments. You can invest and earn a risk-free rate of return of 5%. What is the present value of the perpetuity?
An investment pays $15,000 every other year forever with the first payment one year from today....
An investment pays $15,000 every other year forever with the first payment one year from today. a. What is the value today if the discount rate is 8 percent compounded daily? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the value today if the first payment occurs four years from today? (Use 365 days a year. Do not round intermediate calculations and round your answer...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT