Question
In: Finance
27. You are valuing an investment that will pay you $28,000 per year for the first...
27. You are valuing an investment that will pay you $28,000 per year for the first 4 years, $43,000 per year for the next 12 years, $69,000 per year the next 18 years, and $61,000 per year for the following 10 years (all payments are at the end of each year). If the appropriate annual discount rate is 11.00%, what is the value of the investment to you today?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
You are valuing an investment that will pay you $23,000 per year for the first 8...
You are valuing an investment that will pay you $23,000 per year
for the first 8 years, $27,000 per year for the next 12 years, and
$53,000 per year the following 12 years (all payments are at the
end of each year). If the appropriate annual discount rate is
10.00%, what is the value of the investment to you today?
You are valuing an investment that will pay you $21,000 per year for the first 9...
You are valuing an investment that will pay you $21,000 per year
for the first 9 years, $29,000 per year for the next 12 years, and
$68,000 per year the following 16 years (all payments are at the
end of each year). Another similar risk investment alternative is
an account with a quoted annual interest rate of 13.00% with
monthly compounding of interest. What is the value in today's
dollars of the set of cash flows you have been offered?
You are valuing an investment that will pay you $26,000 per year for the first 14...
You are valuing an investment that will pay you $26,000 per year
for the first 14 years, $34,000 per year for the next 10 years, and
$47,000 per year the following 11 years (payments are at the end of
each year). Another similar risk investment alternative is an
account with a quoted annual interest rate of 7.50% with MONTHLY
compounding of interest. What is the value in today's dollars of
the set of cash flows you have been offered?
(If...
You are valuing an investment that will pay you nothing the first two years, $5,000 the...
You are valuing an investment that will pay you nothing the
first two years, $5,000 the third year, $7,000 the fourth year,
$11,000 the fifth year, and $17,000 the sixth year (all payments
are at the end of each year). What is the value of the investment
to you now if the appropriate annual discount rate is 10.00%?
Please show working and explanation for me. You are valuing an investment that will pay you...
Please show working and explanation
for me.
You are valuing an investment that
will pay you $17,000 per year for the first ten years, $35,000 per
year for the next ten years, and $48,000 per year the following ten
years (all payments are at the end of each year). If the
appropriate annual discount rate is 9.00%, what is the value of the
investment to you today (in whole number)?
1) You are considering an investment that will pay you $12,000 the first year, $13,000 the...
1) You are considering an investment that will pay you $12,000
the first year, $13,000 the second year, $17,000 the third year,
$19,000 the fourth year, $23,000 the fifth year, and $28,000 the
sixth year (all payments are at the end of each year). What is the
maximum you would be willing to pay for this investment if your
opportunity cost is 11%?
3)How much would you be willing to pay for an investment that
will pay you and your...
1) You are considering an investment that will pay you $12,000 the first year, $13,000 the...
1) You are considering an investment that will pay you $12,000
the first year, $13,000 the second year, $17,000 the third year,
$19,000 the fourth year, $23,000 the fifth year, and $28,000 the
sixth year (all payments are at the end of each year). What is the
maximum you would be willing to pay for this investment if your
opportunity cost is 11%?
Solve this question assuming that payments will be received at
the beginning of each year rather than...
You are offered an annuity investment that will pay you $ 25,000 per year for 10...
You are offered an annuity investment that will pay you $ 25,000
per year for 10 years beginning in 20 years.
These payments will be made at the beginning of each year and your
discount rate is expected to be 8%. You will need to make payments
at the end of each year for the next 20 years (also at 8%) in order
to receive the annuity investment.
What is the present value of the annuity investment as of...
You are considering the purchase of an investment that would pay you $5,000 per year for...
You are considering the purchase of an investment that would pay
you $5,000 per year for Years 1‑5, $3,000 per year for Years 6‑8,
and $2,000 per year for Years 9 and 10. If you require a 9.5
percent rate of return, and the cash flows occur at the end of each
year, then what is the MOST you would be willing to pay for this
investment? Answer to 0 decimal places.
You are considering the purchase of an investment that would pay you $55 per year for...
You are considering the purchase of an investment that would pay
you $55 per year for Years 1-4, $30 per year for Years 5-7, and $68
per year for Years 8-10. If you require a 14 percent rate of
return, and the cash flows occur at the end of each year, then how
much should you be willing to pay for this investment? Show your
answer to the nearest $.01. Do not use the $ sign in your
answer.
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