3. An investment offers $6,967 per year for 2 years, with the first payment occurring one year from today. If the required return is 7% what is the present value of the investment? Show your work.
We see that the present value of the investment is given as equal to=Sum of Present Value=6967/1.07+6967/1.07^2=12596.46257
3. An investment offers $6,967 per year for 2 years, with the first payment occurring one...
An investment offers $10,300 per year for 14 years, with the first payment occurring one year from now. Assume the required return is 11 percent. What is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) Present value What would the value be if the payments occurred for 39 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value What...
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An investment offers $5,000 per year for 10 years, with the first payment occurring 1 year from now. If the required return is 8 percent quarterly compounding, what is the value of the investment?
An investment offers $5,000 per year for 10 years, with the first payment occurring 1 year from now. If the required return is 8 percent, what is the value of the investment? What would the value be if the payments occurred forever?
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BIOWEE® TITTEEB Nex ent/d/160AWUQsqylexlusOJV4AG6MjhDAK9jN1RJLUWRhXSc/edit 3. An investment offers $5,500 per year for 15 years, with the first payment occurring one year from today. If the required return is 6%, what is the present value of the investment? Show your work. 4. If you deposit $4,000 at the end of each year for each of the next 20 years into your account which pays 9.7% interest, how muc (4) If you deposit $4,000 at the end of each year for each...
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An investment offers $5,000 per year for 10 years, with the first payment just occurred. If the required return is 8 percent, what is the value of the investment?