4. What is the present value of $1,000,000 to be received in 35 years if the...

4. What is the present value of $1,000,000 to be received in 35 years if the average rate of interest over the 35 years is 2.5%? Interpret your result. Make sure to show your work.

Expert Solution

ekkarill92 answered 1 year ago

What is the present value of $1,000,000 to be received in 15 years, if the opportunity...

What is the present value of $1,000,000 to be received in 15 years, if the opportunity cost is 3.50% annually?

Present Value 6a. What is the present value of $1,000,000, due 25 years from now? ...

Present Value 6a. What is the present value of $1,000,000, due 25 years from now? b. What is the present value of a $40,000 ordinary annuity for 25 years? c. What is the present value of a $40,000 perpetuity, if the first payment is 1 year from now? d. What is the present value of a $40,000 perpetuity, if the first payment is now? Using formula or Excel function

What is the present value of $10,000 that will be received in 10 years if the...

What is the present value of $10,000 that will be received in 10 years if the appropriate interest rate is 6%. Do the calculation again with an interest rate of 10% and explain the result.

6a. What is the present value of $1,000,000, due 25 years from now? b. What is...

6a. What is the present value of $1,000,000, due 25 years from now? b. What is the present value of a $40,000 ordinary annuity for 25 years? c. What is the present value of a $40,000 perpetuity, if the first payment is 1 year from now? d. What is the present value of a $40,000 perpetuity, if the first payment is now? 7. You borrow $35,000 today and will make equal annual payments for the next 3 years, starting in...

1. What is the present value of $679.6 to be received 5 years from now if...

1. What is the present value of $679.6 to be received 5 years from now if the discount rate is 20% per year and the discounting period is annual? 2. What present amount is equivalent to $99 received at the end of 5 years, given an opportunity cost of 16%? 3. What amount received at the end of 15 years is equivalent to $96 received at the end of each year for 15 years, given an opportunity cost of 12%?...

1. What is the present value of $160,000 to be received in 9 years from today?...

1. What is the present value of $160,000 to be received in 9 years from today? Assume a per annum discount rate of 9%, compounded annually. (Round to the nearest penny, e.g. 1234.56) Answer: 2. You just purchased a parcel of land for $73,000. To earn a 14% annual rate of return on your investment, how much must you sell the land for in 5 years? Assume annual compounding. (Round to the nearest penny, e.g. 1234.56) Answer: Earnest T needs...

The present value of $20,000 to be received in 5 years at an interest rate of...

The present value of $20,000 to be received in 5 years at an interest rate of 16%, compounded annually, is $9,522.Required:Using a present value table (Table 6-4 and Table 6-5), calculate the present value of $20,000 for each of the following items (parts a—f) using these facts: (Use the appropriate value(s) from the tables provided. Round your PV factors to 4 decimal places and final answers to the nearest whole dollar.)a. Interest is compounded semiannually. b. Interest is compounded quarterly....

4) Determine the present value of $35,000 to be received at the end of each of...

4) Determine the present value of $35,000 to be received at the end of each of five years, using an interest rate of 5%, compounded annually, as follows: a) By successive computations, using the Present Value of $1 table below. You must show your work. b) By a single computation using the Present Value of an Annuity of $1 table below. You must show your work. Note: The two answers will not come out exactly the same, but should be...

What is the Present Value of a cash payment of $38,666 received 14 years from today...

What is the Present Value of a cash payment of $38,666 received 14 years from today which is discounted at a continuously compounded 1.5% rate of interest?

a. What is the present value (PV) of $70,000 received six years from now, assuming the...

a. What is the present value (PV) of $70,000 received six years from now, assuming the interest rate is 4% per year? a. $47,024 b. $45,500 c. $96,814 d. $55,322 b. Convex Industries has inventories of $212 million, current assets of $1.20 billion, and current liabilities of $528 million. What is its quick ratio? a. 1.87 b. 2.25 c.0.94 d.0.75

Question