Present value = Future value/(1+i)^n
i = interest rate per period
n= number of periods
effective price
= 1000/1.079 + 2000/1.079^2 + 2000/1.079^3 + 2000/1.079^4
= 5712.24
Question 12 5 pts Jim sold a car and accepted a note promising cash flows of...
Question 12 5 pts Jim sold a car and accepted a note promising cash flows of $1,000 at the end of Year 1, and $2,000 at the end of Years 2.3 and 4 as his payment. What was the effective price he received for the car, assuming an interest rate of 8.50%? Your answer should be between 4.715.00 and 6,525.00, rounded to 2 decimal places, with no special characters. 5 pts Question 13
Question 11 5 pts Your best friend just won the Florida lottery. She has the choice of $15,900,000 today or an annuity with payments of $1,700,000 for 20 years, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard any tax consequences. Your answer should be between 2.01 and 14.74, rounded to 2 decimal places, with no special characters. 5 pts Question 12 Jim sold a car and accepted a note...
Your best friend just won the Florida lottery. She has the choice of $15.900,000 today or an annuity with payments of $1.050.000 for 20 years, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard any tax consequences. Your answer should be between 2.01 and 14.74, rounded to 2 decimal places, with no special characters. Question 12 5 pts lim sold a car and accepted a note promising cash flows of...
Question 7 6 points You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 1096? (6 marks) Years CFS AED 5,500 AED 5,500 AED 5,500 AED5,500 TT T Arial 312pt) T.E.E.5.225
5 pts Question 18 An investment promises the following cash flow stream: $1,000 at Time 0; $2,000 at the end of Year 1 (or att = 1); $3,000 at the end of Year 2:; and $5,000 at the end of Year 3. At a discount rate of 6.5 %, what is the present value of the cash flow stream? Your answer should be between 8343.00 and 11,000.00, rounded to 2 decimal places, with no special characters Question 19 5 pts...
Question 6 5 pts Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 5.10% on these bonds. What is the bond's price? Your answer should be between 1000.00 and 1120.00, rounded to 2 decimal places, with no special characters. Question 7 in 5 pts MacBook Air
5 pts Bill paid $10,000 (at.CFO) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $14,450 at the end of the 5th year. What is the expected rate of return on this investment? Your answer should be between 8.12 and 21.96 rounded to 2 decimal places, with no special characters. 5 pts Question 14 Chelsea is buying her first condo for $200,000, and will...
Question 17 5 pts Midwest Industries is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, FCF is expected to be $73 million in Year 5, and the FCF growth rate is expected to be a constant 6.5% beyond that point. Their weighted average cost of capital is 12%. What is the horizon (or continuing) value in millions at t 5? Your answer should be between 562. 15 and 1,936.30,...
Question 15 5 pts Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.65%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the "return over 2 years. Your answer should be between 4.02 and 22.46, rounded to 2 decimal places, with no special characters.
5 pts Question 13 Bill paid $10,000 (at CFO) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $13,250 at the end of the 5th year. What is the expected rate of return on this investment? Your answer should be between 8.12 and 21.96, rounded to 2 decimal places, with no special characters.